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Internet "Whispering Campaigns" Falsely Accuse Teresa Heinz Kerry
Factcheck.org ^ | 8/4/04 | FactCheck.org

Posted on 08/04/2004 11:47:13 AM PDT by hscott

Bogus e-mail messages claim she's given millions to "radical" groups, some linked to terrorists, and located Heinz factories overseas. Both claims are false.

08.04.2004

Summary

False allegations about Kerry's wife have been circulating for months, but the velocity of the Internet "whispering campaign" picked up substantially with the approach of the Fall campaign.

One false message claims Teresa Heinz Kerry gave $4 million to a foundation that used the funds to support a list of "radical" groups including one with alleged links to Hamas and another that is said to have offered to provide a lawyer for Saddam Hussein. But public records show otherwise. Heinz Kerry's foundation money was directed to projects such as "Sustainable Pittsburgh," which promotes "smart growth" strategies.

Another widely circulated e-mail claims Kerry and his wife "own" dozens of H.J. Heinz Company factories in Europe and Asia. It accuses Kerry of hypocrisy for denouncing offshoring of US jobs while "making millions off that cheap labor."

That's also false: neither of them own Heinz. Public records show Heinz Kerry isn't an officer of the company, isn't on the company's board of directors, and isn't even close to being the largest shareholder. The Heinz Endowments do own Heinz stock -- less than 4% of the company -- but income from that stock goes to charity, not to the Kerrys personally.

Analysis

FactCheck.org has received hundreds of copies of these two e-mails from subscribers who asked us to check out whether there's any truth to them. They have been circulating like a virus, relayed by people who either don't bother to check out whether they are true, or don't care. It's the modern equivalent of the old "whispering campaign" in which false rumors served as political weapons.

Teresa Heinz Kerry and the Tides Foundation

The more virulent of these nasty, false mailings alleges that she's given more than $4 million to the Tides Foundation of San Francisco to fund a variety of "radical" groups including some that the message suggests are supportive of terrorists.

To start, that's flatly denied by Maxwell King, the President of the Heinz Endowments. King told FactCheck.org:

King: Neither she nor her foundations has ever funded any of the extremist organizations or unpatriotic causes listed in the email you forwarded. Period.

The Tides Foundation also says that no Heinz funds have gone to any of the groups named in the e-mail. Further, it says Tides itself gives little or no money to several of them. Christopher J. Herrera, Director of Communications of the Tides Foundation, told us that the allegation about a Ramsey Clark group is utterly false, for example.

Herrera: We have made no grants to this organization nor can we find any association with it in our records.

According to Herrera, Tides Foundation gifts to the National Lawyers Guild total "approximately $30,000 over the last ten years," and donations to the Council on Islamic Relations amounted to a single $5,000 grant in 2002 for a Southern California project called the "Interfaith Coalition Against Hate Crimes." But even those relatively small sums didn't come from Heinz money as alleged.

Where $8 million went

Both groups say the only money given directly to the Tides Foundation by the Heinz Endowments was $230,000 given between 1994 and 1998, all used to support a pollution-prevention initiative and other environmental projects in Western Pennsylvania.

Much larger sums have gone through a related legal entity called the Tides Center , which administers grants for groups receiving donations that are not themselves incorporated as a nonprofit organization. The Tides Center takes a fee, typically between 7% and 9%, for handling payrolls, disbursing, legal and administrative work, but the rest legally must go to the group for which the donor intended it.

The Heinz Endowments released a list of grants totaling $8.1 million given through Tides since 1994. None of the money went for the "radical" groups named in the e-mail.Instead, the grants included such sums as:

* $1.6 million for "Sustainable Pittsburgh," which promotes such projects as "bike to work week."

* Just over $1 million for the "Chemical Strategies Partnership," which looks for ways to cut the use of chemicals in industry.

* $800,000 for the "Green Building Alliance ," which promotes buildings that use less energy.

* Nearly $1.4 million for the "Pennsylvania Energy Project," which spun off several renewable-energy projects before going out of business at the end of 2000.

Included in the $8.1 million are grants from the Howard Heinz Endowment and also the Vira I. Heinz Endowment, which collectively make up the Heinz Endowments. Heinz Kerry chairs the Howard Heinz Endowment, the larger of the two, and is a member of the board of directors of the smaller Vira I. Heinz Endowment.

The list appears to be accurate: FactCheck.org checked each grant on the list against those that the Heinz endowments reported to the US Internal Revenue Service on their form 990's for the five years 1998 through 2002. We found no discrepancies: all the grants on the master list matched grants reported on the IRS forms, where there could be legal penalties for false reporting. We would have checked 990's for other years but those before 1998 are not readily available, and the two Heinz endowments aren't scheduled to file their forms for 2003 until Aug. 15.

(Anyone who wants to check for themselves can call up the Heinz form 990's here , where they are posted for all to see by Guidestar, a national database of nonprofit organizations. The service is free, but registration is required.)

The Scaife Connection

This false allegation has its roots in a study published in December, 2003 by the conservative Capital Research Center of Washington, DC. It stated that the Tides Foundation and Tides Center "effectively 'launder' donor dollars" so that "the original donor can?t be linked to the ultimate recipient." It said the Heinz Endowments had given $4,298,500 to Tides between 1995 and 2001. That turned out to be much less than the actual amount, and far from being "laundered," donations from Heinz are listed on the endowment's website as well as in publicly available form 990's.

One of the study's authors then wrote an opinion piece that appeared in the Pittsburgh Tribune-Review , accusing Heinz of teaming with Tides to engage in "secretive funneling of cash . . . to extreme left-wing activist groups." In fact, none of the Heinz money was actually earmarked for any of the organizations listed. Nevertheless, the two articles have been quoted widely on conservative newspaper editorial pages and on conservative websites, one of which is quoted in the bogus e-mail we cite here.

Worth noting is that the publisher of the Pittsburgh Tribune-Review is conservative Republican donor William Mellon Scaife, whose charities also gave $260,000 to Capital Research in 2002, according to a March 7 report in the rival Pittsburgh Post-Gazette . Scaife attracted notice in the 1990's when he funded some of the journalistic investigations into Bill Clinton's affairs. It was the editorial page director for Scaife's Tribune-Review, Colin McNickle, whom Heinz Kerry told to "shove it" in a much-reported incident during the Democratic National Convention July 25.

Heinz Kerry and the Overseas Food Factories

Another e-mail that many of our subscribers have asked about claims -- falsely -- that Heinz Kerry and her husband "own" factories overseas and hypocritically are "making millions off all that cheap labor" while denouncing Bush for letting jobs go to other countries.

This one can also be proved false from publicly available records. In fact, Heinz Kerry has no role in running the food company.

As the H.J. Heinz Company reports in its most recent proxy statement on file with the Securities and Exchange Commission, Heinz Kerry is not on the company's board of directors, nor is she listed among the principal shareholders (those who control 5% or more of the outstanding shares). The charitable foundations she controls once held much more Heinz stock but sold off most of it nearly a decade ago to diversify their investments. The Heinz company said in a recent public statement that she currently controls less than 4% of the company's stock. The largest shareholder is actually a California investment company that owns roughly three times as much as the Heinz charitable foundations.

About all that is true in this e-mail is that the Heinz company has a number of factories overseas.

Its most recent annual report , also publicly available at the SEC's website, lists 32 factories owned in Europe (and three more leased), and 18 in Asia and the Pacific (plus four more leased). Heinz also reported selling just over $3 billion in products in Europe and more than $1 billion more in Asia and the Pacific -- accounting for roughly half the company's global sales.

The company issued a statement back in March, when this e-mail first began circulating, saying that 60% of its sales are outside the US (including those in Mexico and Canada as well as Europe and Asia) and that it locates plants in other countries "to accommodate those customers by providing facilities closer to those markets" and "to pack the freshest ingredients, tailor its recipes to local tastes and deliver the final products in a timely and efficient manner."

The company also distanced itself from the Kerry campaign and Heinz Kerry:

H.J. Heinz Co: In light of some misleading speculation, the H. J. Heinz Company would like to make clear that neither Mrs. Teresa Heinz Kerry, Senator John Kerry nor any member of their family is involved in the management or board of the H. J. Heinz Company. . . . They have no involvement in the Heinz® Ketchup business or any of the company?s other brands or products.

The Heinz company also said it is "nonpartisan." Worth noting, however, is that the company's Political Action Committee has given nearly all its donations to Republican candidates, including $5,000 to the Bush campaign and nothing to Kerry's as of the most recent reports available. That's additional evidence, as if any was needed, that the company isn't "owned" by Kerry's wife.


TOPICS: Politics/Elections
KEYWORDS: crazy; dangerous; factcheck; fruitloop; fundingtheleft; heinz; kerry; leftwing; radicals; teresa; teresaheinz; teresaheinzkerry; tides; tidesfoundation
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To: KAUAIBOUND
The damage to Gigolo John's campaign will be from her personality and her big mouth, which is there for all to see.

And the fact that this Royal pair won't release tax returns or medical records. What are they hiding?

21 posted on 08/04/2004 12:04:44 PM PDT by Bernard Marx (Is Karl Marx's grave a Communist plot?)
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To: hscott

This wouldn't be happening if Terry Kerry released her complete tax returns for the past decade, as every Presidential candidate and his spouse have done in the past.

Terry Kerry is a victim of her own arrogance on this one. It will not change til she changes.

Don't hold your breath.


22 posted on 08/04/2004 12:08:13 PM PDT by Badeye ("You haven't posted anything to even remotely cause me to reconsider this position.")
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To: hscott
Your analysis is correct, basically this "research" is a misdirection. The bottom line is HK's donation to Tides enabled Tides to fund extreme anti-American wackos.

And, I still buy W ketchup.

23 posted on 08/04/2004 12:08:28 PM PDT by Navy Patriot
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To: hscott

One shouldn't presume this lady is a whack job because of rumors-it's much easier to base it on just listening to her!


24 posted on 08/04/2004 12:09:29 PM PDT by Spok
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To: hscott

not so fast....what is clear is that Tides gives money to CAIR and it isnt clear what they do with it. please see Daniel Pipes's comments
http://www.danielpipes.org/article/394

other info perpetuating the same "urban myths"

http://www.frontpagemag.com/Articles/ReadArticle.asp?ID=7835

How Ford Funds the Left
By William Bacon
FrontPageMagazine.com | May 15, 2003

One of the most disturbing realities in American society today is that the Ford Foundation, which is supposed to represent the love of America and of American values, finances the far Left. Ford is especially financially generous, for instance, to radical entities such as the anti-War, neo-Com movement. It also provides substantial grants to the Tides Foundation and its sister non-profits: The Tides Center, Thoreau Center for Sustainability, Groundspring.org, the Tsunami Fund, Tides Canada Foundation, and Highwater, Inc., a for-profit real estate firm that manages Tides’ properties including its home office in San Francisco’s Presidio.

The story of what Tides actually does with its wealth is one that is rarely told or heard of.

It is time to tell it.

Tides was founded in 1976 by Drummond Pike as "a convenient vehicle with squeaky clean books." While the former is undoubtedly true, the latter is, at best, questionable. The Foundation is a foundation in name, only. Legally, it is a public charity; allowed under IRS rules to solicit contributions and distribute them, which is exactly what the group does. It has distributed over $300 million dollars in grants to various groups for the full array of neo-Com activities: anti-globalism, anti-war, gun control, etc.

The Tides Center, although distinct from the Foundation by the letter of the law, itself takes in substantial amounts of money to "manage" various radical-left projects. Of course, each project managed by the Center is subject to a substantial fee -- usually 8 percent of all funds collected. Additionally, the Foundation, itself, may rake off another amount as a "Program Advisory fee" between 1 and 13 percent of the donation.
(snip)

http://www.wnd.com/news/article.asp?ARTICLE_ID=37244
http://www.anti-cair-net.org/press_009_04


25 posted on 08/04/2004 12:17:02 PM PDT by APRPEH (supremacist thought is liberal politics)
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To: hscott
According to Herrera, Tides Foundation gifts to the National Lawyers Guild total "approximately $30,000 over the last ten years,"

So to find out what the Tides Foundation is up to, you have to ask the Communications Director, who gives you an approximate figure for "gifts" (probably Clintonian parsing, covering $1.4 million in "grants"). Sounds like the Tides Foundation is shadowy and secretive. Why doesn't Tides Foundation publish an itemized accounting of their grants?

Maybe Tides Foundation serves as a convenient money laundering scheme whereby rich looney leftists can donate to radical and subversive organizations, while posing as donators to harmless charities.

26 posted on 08/04/2004 12:17:02 PM PDT by Plutarch
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To: hscott

As a 527, no money that is donated by Teresa to Tides can be "tagged".


27 posted on 08/04/2004 12:21:36 PM PDT by cake_crumb (UN Resolutions=Very Expensive, Very SCRATCHY Toilet Paper)
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To: Spok
Hey, we're not asking a lot. If we have to go through the torture of listening to her hysterical propaganda and self-promotion then she should have to pay the price. Release the tax records.
28 posted on 08/04/2004 12:23:04 PM PDT by Liberty Wins (Life, Liberty, and the pursuit of all who threaten it.)
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To: Plutarch

The truth must hurt,right Tess.


29 posted on 08/04/2004 12:24:04 PM PDT by jocko12
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To: Plutarch
Maybe Tides Foundation serves as a convenient money laundering scheme

"Tides" == money laundering! I'll bet Kerry's money requires extra bleach. :)

30 posted on 08/04/2004 12:26:19 PM PDT by the_Watchman
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To: hscott

Pssssssst.

Teresa Heinz-Kerry is a #$%@&&^%!)#, and furthermore, she @*&$%#^(*))@_!++!!.


31 posted on 08/04/2004 12:27:59 PM PDT by ZULU
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To: APRPEH

before anyone asks:
http://www.danielpipes.org/cair.php
http://www.littlegreenfootballs.com/weblog/?entry=11881
http://www.tzemach.org/fyi/docs/winston/june18-01.htm


32 posted on 08/04/2004 12:30:21 PM PDT by APRPEH (supremacist thought is liberal politics)
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To: hscott
I would imagine this FactCheck has a considerable piece on Fahrenheit 911 then. Although, as most of us know it takes a heck of a lot more than one website or org to keep up with that trash.
33 posted on 08/04/2004 12:32:39 PM PDT by BallyBill (I question the timing of this tagline release!)
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To: PFMRightNow
Either way, this Lady is a Total Wack Job!

And one of the nastiest people I have ever met. I have seen her be very rude to people she deemed to be not important. Rude and hurtful.

34 posted on 08/04/2004 12:34:19 PM PDT by ladyjane
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To: Notwithstanding
Money is fungible.

Charity Z has 1 million dollars in projects it wishes to fund.

Charity Z raises $500,000 so far, but keeps pounding the pavement for more money.

Mrs. Ketchup then gives $500,000 to Charity Z to fund only specific non-radical projects.

Thanks to Mrs. Ketchup, who kows about these radical projects, Charity Z now has fully funded its other radical projects!

I'll give a more concrete example to your illustration. I wouldn't give to The United Way even if I could direct my donation to a specific program. The reason? The United Way helps fund planned parenthood. Every dollar I give the United Way is another dollar they can divert to pph or some other left org I would not want to fund.
35 posted on 08/04/2004 12:35:08 PM PDT by tang-soo (Prophecy of the Seventy Weeks - Read Daniel Chapter 9)
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To: hscott
Worth noting is that the publisher of the Pittsburgh Tribune-Review is conservative Republican donor William Mellon Scaife,

He’s a Republican donor! That proves he can’t be telling the truth! </ sarcasm >
H.J. Heinz Co: In light of some misleading speculation, the H. J. Heinz Company would like to make clear that neither Mrs. Teresa Heinz Kerry, Senator John Kerry nor any member of their family is involved in the management or board of the H. J. Heinz Company. . . . They have no involvement in the Heinz® Ketchup business or any of the company’s other brands or products.
The Heinz company also said it is "nonpartisan." Worth noting, however, is that the company's Political Action Committee has given nearly all its donations to Republican candidates, including $5,000 to the Bush campaign and nothing to Kerry's as of the most recent reports available. That's additional evidence, as if any was needed, that the company isn't "owned" by Kerry's wife.

Smart move on the part of H. J. Heinz.
36 posted on 08/04/2004 12:37:16 PM PDT by R. Scott (Humanity i love you because when you're hard up you pawn your Intelligence to buy a drink.)
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To: tang-soo

Amen - exactly how I have felt since I first was asked to donate to the "combined federal campaign" (CFC) in 1986 as a cadet. (The CFC is just like the United Way but is for Federal employees).

I looked at the pamphlet and saw evil organizations listed and knew I could have no part in funding it!


37 posted on 08/04/2004 12:42:50 PM PDT by Notwithstanding (Fides et Ratio)
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To: snooker

Exactly, where are the tax returns.


38 posted on 08/04/2004 12:45:01 PM PDT by DB (©)
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To: hscott

The bottom line is that money is fungible.

Heinz gives to Tides.

Tides gives to looney lefties.

Once TeRAYza cash is stirred into the pot, who knows where it goes?


39 posted on 08/04/2004 12:50:22 PM PDT by TC Rider (The United States Constitution © 1791. All Rights Reserved.)
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To: BallyBill
"Although, as most of us know it takes a heck of a lot more than one website or org to keep up with that trash."

The federal govrnment can't even keep up with that trash.

40 posted on 08/04/2004 12:57:58 PM PDT by cake_crumb (UN Resolutions=Very Expensive, Very SCRATCHY Toilet Paper)
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