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Home , Freedom Partners, Invista, Koch family, Koch Industries

The Koch Brothers and – Part 2

Like Art Pope, David and Charles inherited their wealth from their father, Fred. Initially, the wealth came from business that was limited to oil and chemical engineering but has grown considerably. Koch (pronounced “Coke”) Industries currently consists of twelve corporations, and numerous subsidiaries. As most of these companies deal with oil, gas, refineries or transportation of, These corporations, many are world-wide, include: Flint Hills Resources, LLC operates fuel refineries in Minnesota, and Alaska. The company also produces & markets petrochemicals, ethanol, biofuels and ; and owns 50% interests in a lubricants base oil facility in Louisiana. Koch Pipeline Company, LP operates more than 4,000 miles of pipelines that transport crude oil, refined products, ethanol, liquids and chemicals. Georgia-Pacific LLC , based in Atlanta and its subsidiaries are among the world’s leading manufacturers and marketers of paper and wood products. Koch , again, among the world’s largest producers and marketers of with the capability to market and distribute more than 13 million tons of fertilizer products annually.

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Koch Chemical Technology Group, LLC and its subsidiaries help deliver cleaner air and water worldwide by specializing in process and control equipment. Koch Membrane Systems, Inc. includes Koch Heat Transfer Company, John Zink Hamworthy Combustion, Otimized Process Designs, and Koch Knight. You can explore each of these companies’ web sites. Koch Supply & Trading are companies around the world that trade crude oil; refined petroleum products, gas liquids, natural gas, and emission allowances; industrial metals; and other . Koch Minerals, LLC , and its subsidiaries are among the world’s largest dry-bulk handlers, annually marketing and trading more than 40 million product, as well as petroleum and natural gas properties. The Matador Cattle Company , a division of Koch Agriculture Company operates three ranches in , Texas and totaling more than 440,000 acres and 11,000 cattle. Koch Business Solutions, LP , provides consulting and transactional services in areas of human resources, information technology, finance, accounting and facilities for Koch companies worldwide. The company has 800 employees and three main locations: Atlanta, Wichita and Green Bay, Wisconsin with many employees working remotely from within other Koch sites.

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Koch Companies Public Sector, LLC is the Corporate Law Department for Koch Industries and is located in Wichita, Ks. , one of the world’s largest integrated producers of chemical intermediates. Through its innovations in the nylon, , polyester and specialty materials industries, you may find Invista’s products in your clothing, carpets, cars and computers---just to name a few. Invista is also located in Wilmington, NC ! At 4600 US 421 North , they manufacture epoxy resin, various polyester fiber polyposis, and a crystalline solid, DMT (Dimethyl Terephthalate). NOTE: According to the 11-7-13 Star News, DMT production sill cease by end of 2013. Production of Terate HT polyols, a product used in the manufacturing of insulation will remain. These products are shipped worldwide. On River Road, near the Port, are multiple large holding tanks. From their family owned the Koch brother’s own personal wealth is estimated at $31 BILLION, EACH, which gives them their political muscle. To protect their interest, the Koch’s, like Art Pope, are against laws that protect our environment. They are for, and push for, fracking and off-shore drilling . They don’t believe in global warming. Climate-change policy directly affects Koch Industries bottom line. According to EPA statistics, a major source of carbon-dioxide emissions, the kind of pollution that most

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scientists believe causes global warming. In 2011, according to the E.P.A.’s greenhouse-gas-pollution database, Koch, which has oil refineries in 3 states, emitted over 24 million tons of carbon dioxide, as much as is typically emitted by 5 million cars. Starting in 2008, a year after the Supreme Court ruled that the EPA could regulate greenhouse gasses as a form of pollution, the Koch-funded AFP devised the “No Climate Tax Pledge”. This proved to be a successful campaign to prevent lawmakers from addressing climate change. Two successive efforts to control greenhouse-gas emissions by implementing cap-and-trade bills died in the Senate. By now, 411 current office holders nationwide has signed the pledge. Signatories include the entire Republican leadership in the House of Rep., and a quarter of US senators.

The 2010 mid-term elections were a high watermark for the pledge. The Koch’s gave generously to efforts to help shift the majority in the House from Democratic to Republican. Koch’s Industries political action committee spent $1.3 million on congressional campaigns that year. When Republicans took control of the House, a huge block of climate-change opponents was empowered. 165 members of the House that year had signed the “No Climate Tax” pledge.

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The No Climate Tax Pledge has made inroads at the state levels. Signatures now include Oklahoma superintendent of schools, the Idaho Treasurer and 3 justices of the peace in Arkansas! You may have received Senator Kay Hagan’s 9-20-13 e-mail, “Koch brothers in NC”. In this, she spoke about the Koch’s efforts to spread their special interest agenda in NC. Their shadowy front-group, , has already spent almost half a million dollars in NC over the past 5 months, and yesterday (9-19) they announced they plan to spend even more. The group spent more than $36 million on elections in 2012. And this time around, looks like they’ve got their sights set on NC”. This same information also appeared on ’s website. The May 11, 2013 Politico article stated: “Getting dramatic economic change at the federal level is very difficult, said Tim Phillips, (president of the Pope and Koch- backed Americans for Prosperity). A few years ago, the idea we had was to create model states. NC was a great opportunity to do that – more so than any other state in the region. If you could turn around a state like that, you could get real reform.” Well, we know what they’ve done to our State. To name a few laws enacted, thanks impart to ALEC, the American Legislative Exchange Council: Numerous gun laws, Voting laws, eliminating public financing for judicial races, cuts to education and teachers, attempts to establish Christianity as the official state

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religion, and McCroy canned members of the State Board of Elections just as the board announced an investigation into contributions made to the governor’s campaign. The director of NC Futures Fund (Dean Debnam), a tax-exempt nonprofit which bankrolled a number of liberal outside groups in 2012, said he was meeting with donors and national groups to expand the donor base and has doubled his staff since November. We don’t have a base that’s equivalent to the Koch brothers or an Art Pope; “But, there’s a great amount of concern and people are putting money at a level that they haven’t done before.” Our NCDP Chair, Randy Voller is also working hard in getting more money to offset what’s ahead. The November,2012 election was a major setback for the Kochs, but they have vowed there would be no backing down. They would learn from their mistakes, test new strategies and prepare for the 2014 elections, with control of Congress at stake. Recently, PR Watch.org , published an article, based on the reporting on Koch-funded “ ” which secretly distributed $250 million during the 2012 election season, posted its first federal tax report, on several entities that were previously unknown. These monies are considered “”. Freedom Partners lists 5 entities which owned 100% of: The American Entrepreneur Fund LLC which has assets of $885,316 and whose activities are listed as simply as “projects”

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- The American Enterprise Group LLC with assets of $424,975 and whose activities are list a “management” - The American Strategies Group , with assets of $97,714 whose activities are listed as “public outreach” - American Strategic Innovations LLC with assets of $4,976 whose job was also listed as “research”. All of these entities, whose assets totaled more than $1.4 million as of October, 2012, share the same street address in Arlington, VA. All are registered in Delaware. In IRS lingo, these corporations are listed as “disregarded” NOT because then no longer exist, BUT because of a technical tax definition for certain companies that are similar to sole proprietorships, or controlled by just a few people. They are Small Business’. The Freedom Partners Chamber of Commerce’s tax filing also lists the names and amounts of all of the entities it funded between last 2011 and the eve of the 2012 elections. Following are only the top 5 groups which the Koch’s Freedom Partners Chamber of Commerce funneled millions.(Do not confuse with U.S. Chamber of Commerce.) Center to Protect Patient Rights (CPPR) – cash totaling $114,678,000 which is at the center of a probe by the California Elections Board on “dark money” spent through shell groups to influence 2 ballot initiatives and concerns.

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PR Dist LLC , described only as “ Americans for Prosperity”, $31,600,000. The 60 Plus Association , Inc., $15,660,000. American Future Fund , $13,600,000. Concerned Women for American Legislative Action Committee , $8,150,000. Koch Industries has repeatedly issued denouncements that it has any role in gun policies. The Center for Media and Democracy (CMD) has documented how extreme gun policies of the NRA have flourished while Koch Industries has had a seat on the led ALEC’s (American Legislative Exchange Committee) Private Enterprise Advisory Council. With the latest tax filing it is clear that this Koch-related operation is directly funding the NRA. The NRA received $3,465,000. The brothers want their network to play a bigger role in cultivating and promoting Republican candidates who hew to their vision of conservatism, emphasizing smaller government and deregulation more than immigration and social issues. In the works are “ Generation Opportunity ” that focuses on young voters ; Livre (translation – Freedom) Initiative a Hispanic-oriented conservative group; The 60 Plus Association, Inc . will target folks over 60 years old. Based on a recent Open Secrets report of the top 20 PAC Contributors to Candidates, 2013-2014 cycle , Koch Industries has given a total of $541,500. 99% went to the Rep. Pty, 1% to

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the Dem. Pty. NOTE: Info on Open Secrets is frequently updated. This is especially true for data pertaining to the 2013- 2014 election cycle. From 2003-2012, Koch gave $2,492,510 to Republicans, $249,890 to Democrats, that’s 90% to the GOP, 9% to Democrats and the remaining to 3 rd Party, & others for less than 1%. Koch gave Phil Berger $12,000. between 2010-2012, and $11,000. to Thom Tillis. Tillis, along with former Rep. Harold Brubaker are currently on the ALEC Board of Directors. (Others in our General Assembly who are various Boards and Task Forces are included in Part 3, ALEC). Pat McCrory received $8,000 between 2008 and 2012. The director of NC Futures Fund (Dean Debnam), a tax-exempt nonprofit which bankrolled a number of liberal outside groups in 2012, said he was meeting with donors and national groups to expend the donor base and has doubled his staff since November, 2012. “We don’t have a base that’s equivalent to the Koch brothers or an Art Pope. But, there’s a great amount of concern and people are putting money at a level that they haven’t done before.” Our NCDP Chair, Randy Voller is also working hard in getting more contributions to offset what’s ahead.

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CORPORATE CONTRIBUTORS Based on what I found on Open Secrets, which includes top 20 PACs who contribute to candidates at a Federal Level, I’ve listed only those companies who are local to NHC.

AT&T $851,000 - GOP 65% DEM 35% Home Depot 603,500 78% 22% General Electric 546,500 59% 41% Koch Industries 541,500 99% 1%

As of this posting, the top PAC contributories to Federal Candidates in the 2014 cycle , I were:

PAC Name Total Dems GOP Home Depot $603,500 $134,500 $469,000 Lowes 96,000 16,000 80,000 Target 77,500 34,000 43,500 Sears Holding Corp. 21,000 11,000 10,000 JC Penny 7,500 2,000 5,500 Walgreen Co. 61,000 35,000 26,000 Rite Aid Corp. 9,000 4,500 4,500 CVS 33,000 9,000 24,000

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For the 2014 Election cycle, Walmart Stores have given a total of $444,100; 44% to Democrats, 57% to Republicans. However, including 2006 to this report, Walmart gave $14,801,812. 68% was given to the GOP, and 31% to the Democrats.

The foregoing figures will have changed. You can get up to date information by going to www.opensecrets.org.

Costco contributes 100% to the Democratic Party. For Lobbying in the 2012 election cycle, Costco ranked 817 out of 21,002 companies in contributions. No monies went to outside spending and no monies were invested as Costco’s members. We can help in a small way by not purchasing Koch’s Georgia Pacific products. But, if we can’t avoid buying them, I suggest that we buy them at Costco. To access a poster/handout of popular Georgia-Pacific products, go to www.politicususa.com/KOCH BLOCK IT . Please make a copy and share it with your friends. - If you’re interested in who’s giving, and how much, check out Open Secrets.org. Keep in mind that what you see today will change tomorrow.

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SIDELINE

After investigating the Koch brothers, a great deal of thought was given as to their motives when it comes to money, power and political views. Koch Industries has a comprehensive Code of Conduct for their many companies and employees, and as individuals give generously to cultural events, the Arts, and various charities. They produce and manufacture great products; all of which is very positive. Perhaps it all leads back to their father, Fred. Fred was born in Quannah, Texas in 1900. After obtaining a degree in Chemical Engineering, he started his career with the Texas Oil Co., and was instrumental in discovering how to turn crude oil into gasoline. He then turned his focus on foreign markets in Asia, Europe and the . According to Yashba Levine, author of The Exiled , “while living in the Soviet Union, Fred learned to despise Stalin’s regime and was convinced the Communists were going to infiltrate the USA in schools, armed forces, etc. He felt that both the Democratic and Republican parties were infiltrated by the communists and supported Mussolini’s suppression of communists.” He wrote that “The colored man looms large in the Communist plan to take over America and that public welfare was a secret plot to

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attract rural blacks and Puerto Ricans to Eastern cities to vote for Communist causes. In the 1950’s, Fred was one of the co-founders of the . The John Birch Society claimed to be anti-Communists, but racism seems to have not been an issue.” According to Yasha Levine’s series on the , “The Tea Party revolutionaries fear and hate socialism as much as the Anti-Christ which is funny because the ’s dirty little secret is that it owes its existence to the granddaddy of all antichrists: The godless empire of the USSR.” Yasha Levine also wrote “ Peoples’ History of the Koch Industries”.

David and are Libertarians and support policies that promote individual liberty and principles, but less government. was the Libertarian Party’s vice-president candidate in the 1980 presidential election, sharing the ticket with presidential candidate .

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Disclaimer

The foregoing “facts and figures” for both Art Pope and The Koch Brothers were obtained from various web sites and publications that include, but not limited to: PR Watch.org; Politico.com; Open Screts.org; news-ecord.com; Wikipedia.org; PlanetPOV.com; Ask.com; followthemoney.org; nytimes.com; huffingtonpost.com; newyorker.com; nationaljournal.com; kochfacts.com; Truthdig.com, and kochind.com., plus various “Search” requests.

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