In 1913, Colonel House helped to pick the charter members of the original Federal Reserve Board. (Road Show)
The American and British Round Table groups were
the secret society's back bone. By 1914 (the
beginning of World War I) there were secret Round Table Groups established in
seven countries: 1. England, 2. the United States, 3. South Africa, 4. Canada,
5. Australia, 6. New Zealand and 7. India.
In 1919 (after the Paris Peace Conference) the seven
Edward Mandell House was the seventh son of a seventh son. According to House,
"We originally came from Holland and the name was Huis, which finally fell into
House. Father ran away from home and went to sea when a child, and did not return
to his home until he had become a man of property and distinction. He came to
Texas when it belonged to Mexico. He joined the revolution, fought under General
Burleson, and helped make Texas a republic. For his services in this war he
received a grant for land in Coryell County. He lived to see Texas come into
the Union, secede, and return to the Union. He lived in Texas under four flags."13
According House's biographer, Charles Seymour, "Thus wrote Colonel House in
the summer of 1916, when a brief lull in his political activities gave opportunity
for him to reconstruct on paper something of the background that lay behind
his rapid rise to national and international eminence. Although the family was
in its origin Dutch, his forbearers were for some three hundred years English,
and it was from England that his father ran away. House himself, a seventh son,
was born in 1858, at Houston, Texas, and this State he has always regarded as
his home. Even more than those of Wilson or Walter
Page, with whom he later was so closely associated, his first years were touched
by the excitement and turmoil of the times."14 The turmoil of the times was
the Civil War (1861 - 1865). Thomas House had become a millionaire growing Cotton
on his Coryell County land. Thomas House used some of his money to buy ships.
The ships carried goods that were bought and sold. Two commodities House traded
in were cotton and slaves. Some Southerners managed to profit from the Civil
War. Thomas House was one. When the war began Lincoln blockaded the Southern
coast. Thomas House increased his wealth by using his ships to run the blockades. Thomas
House became rich and avoided risk by hiring men to run the blockades while
he observed safely from shore. According to Edward House, "During the war he
sent many ships out from Galveston with cotton, to run the blockade to near-by
ports, such as Havana and Belize Honduras. At that time we had a house in Galveston
as well as in Houston. The Galveston home covered an entire block. The house
was a large red brick Colonial one, with white pillars, and an orange grove
took up most of the grounds, and oleanders encircle them. In determining when to send his ships out, Father was governed largely by the
weather. Dark, stormy nights were the ones chosen. In the afternoon he would
go up to the cupola of our house, and with his glasses he would scan the horizon
to see how many Federal gunboats were patrolling the coast. Then his ship would
go out in the early part of the night. In the morning, at daylight, he would
be again on the lookout to count the Federal gunboats, to see if any were missing.
If they were all there, he felt reasonably sure his ship had gotten through
the blockade. It would be months before he knew definitely whether his ships had come safely
to port or whether they had been captured. When he lost one, the loss was complete;
but when one got through, the gain was large. He had a working arrangement with
the Confederate Government by which the return voyage brought them clothing,
arms, and munitions of war of all kinds. The terrible days between Lee's surrender and bringing some sort of order out
of the chaos in the South made a lasting impression on my mind. I cannot recall
just now long the interim was, but it must have been a full year or more. There was one regiment of Texas soldiers that came to Houston and disbanded
there. They looted the town. They attempted to break into Father's storehouse,
but he stood at the doors with a shotgun...Murder was rife everywhere; there
was no law, there was no order. It was unsafe to go at night to you next-door
neighbor's. When Father had this to do, he always reached for his shotgun or
six-shooter and held it ready to shoot while both going and coming."15 Men of
war met at the House plantation to discuss military strategy. One of those men
was Jefferson Davis. On January 1863 Lincoln issued the Emancipation Proclamation
freeing "all slaves in rebellion." The proclamation encouraged slaves to rebel
and kill their owners -- their reward would be their Freedom. Slave owners had
cause to hate Lincoln. Lee's surrender on April 9th 1865 was bad news for Thomas
House -- his blockade running business was over. Lincoln would be assassinated
five days latter. This encouraged southern troops to fight on. The news of Lincoln's
assassination was a cause for celebration at the House plantation. The last
rebel troops surrendered a month later May 26, 1865. In 1866 the Ku Klux Klan
formed secretly in the South. They were a vigilante group, that terrorized blacks,
and used frontier justice against carpet baggers, and criminals that traveled
throughout the south during reconstruction. Thomas House and some of Edward's
older brothers joined the Texas Klan. 16 After the civil war Edward was sent to preparatory school in England. Edward
developed close friendships with his English schoolmates. Some of Edward's schoolmates
would become members of Cecil Rhodes Round Table group, so would Edward. Some
of Edward's schoolmates would grow up to become the most powerful English diplomats
and spies in Britain. Edward would grow up to be on of the most powerful diplomats
and spies in America. Edward's mother died when he was fourteen. Edward returned
to the States to complete his education. According to House, "I had expected
to be able to enter Yale, but I found myself wholly unprepared and reluctantly
entered the Hopkin's Grammar School of the Class of '77...What I had been taught
was of but little use, and I would have been better off as far as Latin and
Greek were concerned if I had known nothing and had started from the beginning.
I studied but little, and I soon found I should have difficulty in joining the
Class of '81 in Yale. Meanwhile, Oliver T. Morton, a son of Senator Oliver P.
Morton of Indiana, and I had become fast friends and we agreed to tutor and
go to Cornell instead of Yale. Both Morton and I were more bent on mischief
than upon books and, while the mischief was innocent, it made us poor students."
17 House didn't get good grades -- House did get a good education.Oliver T. Morton's
father was a potential Republican presidential Candidate. Morton was an Republican.
House, being from the south, was an ardent Democrat. The youngmen's friendship,
coupled with an interesting political presidential race, would provide House
with educational experience, that no planned curriculum could ever have offered.
The youngmen followed the election campaign. They argued politics, they read
about politics, they debated political issues, and they cut class to attend
political meetings. House relates, "Every near-by political meeting I attended,
and there was no one more interested in the nomination and election of the presidential
candidates of 1876 than I. At every opportunity I would go to New York and hang
about Democratic Headquarters which, I remember, were at the Everett House in
Union Square. I used to see Mr. [Samuel] Tilden go in and out, and wondered
then how so frail a looking man could make a campaign for President. Bayard, Blaine, and others I heard speak whenever the opportunity occurred,
and I believe that I was as nearly engrossed in politics as I have ever been
since. Before the nominations were made, I was, of course, hoping to see young Morton's
father nominated for President, and it was a bitter disappointment to us both
when the telegraph operator handed us out the first slip giving new that the
Republicans had compromised upon Rutherford B. Hays. The operator knew us, for
we were continually hanging about the office instead of attending to our studies.
Morton's father was such a poser at the time that there was no difficulty in
his having access to any information that was to be had. Ardent Democrat that I was, and ardent Republican that he was, young Morton
and I had no unpleasant discussions. After the election and during the contest
that followed, it was utterly impossible for me to bring myself to think of
desk or books. I was constantly going to Washington with Morton, in order to
be near the center of things. I was usually the guest of the Mortons, who lived
at the time at the Ebbitt House. I knew much of everything that was going on.
Republican leaders would come in day and night to consult the distinguished
invalid who was directing the fight for Hayes. In this way, directly and indirectly,
I saw and met many well-known Republicans in public life at that time."18 When the election results of 1876 came in Rutherford B. Hayes (Republican)
believed he had lost the election to Samuel Tilden (Democrat). It was discovered
that a few Southern States had submitted two different sets of electoral votes.
A dispute arose over the result. A electoral commission was appointed by Congress.
Eight Republicans and seven Democrats served on the commission. All the disputed
votes were awarded to Hayes. Hayes became president by one electoral vote. Hayes
did keep a promise he made to the Southerners -- he withdrew troops from all
areas still occupied in the South, ending the era of reconstruction. 19 In 1880 Thomas House died. Edward House dropped out of Cornell and returned
to Texas. Edward inherited his father's greatest wealth the cotton plantations.
The Civil war had made it impossible for Edward to inherit his father's slaves.
Edward managed the plantations for ten years. In 1890 he sold the plantations
and invested the money in bank notes. The interest provided Edward Mandell House
with financial independence for the rest of his life.20 Besides the Plantations, Edward inherited his daddies friends. They were older
than Edward. After the civil war they were the men that formed the Ku Klux Klan.
The Ku Klux Klaners were the old-timers who dispensed vigilante justice. Some
of that justice was warranted -- some of the justice was simply murder. By 1880
a new legitimate group was in charge of dispensing justice in Texas -- the Texas
Rangers. They wore stars, carried arms, were paid salaries, and killed in the
line of duty. They were hard men, and tough men. They were aggressive, virile
and domineering men. Intimidation was one way they used to keep the peace. Many
of them had big brawny bodies -- all of them had big egos -- all of them had
six-shooters buckled around their waists. Many of the Texas Rangers were members
of the Klan. Edward was the new master. It was Edward's job to gain their loyalty.
Edward gained their loyalty by stroking their egos. Edward would use his money
and influence to try and make them famous. Edward described his new friends
as "that intrepid band that made Texas what she is to-day. I make obeisance
to them! Nothing daunted them. They tore a principality from a sovereign state
and moulded a trackless wilderness into a great commonwealth. These men were
the heroes of my childhood; and now when I am growing old and have seen many
men and many lands, I go back to them and salute them, for I find they are my
heros still."21 One of the oldest and perhaps best of these "friends" was a Texas Ranger named
Captain Bill McDonald. According to House, "In my early boyhood I knew many
of the Bill McDonalds type, although he was perhaps the flower of them all.
I knew personally many of the famous desperados, men who had killed so many
that they had almost ceased to count their victims. There were two types of so-called "killers" - one that murdered simply for
the pure love it, and others that killed because it was in their way of duty.
Bill McDonald belonged to this latter class. So also did Blue-eyed Captain McKinney
of the Rangers, whom I knew in my ranching days in southwest Texas. McKinney was finally ambushed and killed, as almost every sheriff of La Salle
County was killed during that particular period. Whenever I went to our ranch,
I was never certain that I would return home alive. Feuds were always going
on, and in some of these our ranch was more or less involved."22 Many of the Sheriff's of La Salle county were little more than hired thugs
-- licensed to kill. They were loyal to the men running the county. If those
men's interest were threatened the Sheriffs administered discipline. The Governor
of Texas from 1890 to 1894 was Governor Hogg. Edward Mandell House was instrumental
in getting Hogg elected. During his administration rail-road workers struck.
Governor Hogg used Texas Ranger Bill McDonald to break up the strike. According
to House, "Governor Hogg...broke up strikes during his administration. Captain
Bill McDonald, of the Ranger Service, was the instrument he used. Hogg sent
word to the leaders that if they continued to uncouple cars, or to do anything
that might interfere with the movement of trains, he would shoot holes through
them big enough to see through. When Bill conveyed this to the ringleaders and
presented himself as the instrument through which it was to be done, lawlessness
ceased." Edward inherited the Texas Ku Klux Klan. The success of the Hogg campaign insured the political position of House in
Texas. Edward Mandell House helped to make four men governor of Texas (James
S. Hogg (1892), Charles A. Culberson (1894), Joseph D. Sayers (1898), and S.
W.T. Lanham (1902)). After the election House acted as unofficial advisor to
each governor. House would say in regard to the Hogg election, "So in politics
I began at the top rather than at the bottom and I have been doing since that
day pretty much what I am doing now; that is, advising and helping wherever
I might." Hogg, caught onto House. Hogg gave House the title "Colonel" by promoting
House to his staff. Appointment to the official Staff of the Governor was a
Texas political custom of dubious honor. Along with the staff position came
a uniform they could wear to official gatherings or "bestow upon an ancient
and grateful darkey." Governor Hogg appointed House to his staff without telling
him. Upon receiving the staff officer's uniform House did give it to a servant.
The title Colonel stuck. Despite his protest, he became "Colonel House" or even
"The Colonel." House wanted to control more than Texas, House wanted to control the country.
House would do so by becoming a king maker instead of a king. House learned
by controlling two or three men in the Senate; two or three men in the House;
and the President -- he could control the country. Edward saw his father, Thomas,
become rich and avoid risk by hiring men to run the blockades while observing
safely from shore. House would do the same in the political arena. He would
find a candidate that he could influence. He would be instrumental in helping
that candidate achieve office. He would influence the candidate from behind
the scenes. The people would perceive one man was representing them, when in
reality, an entirely different man was in control. House could influence that
man to betray his constituents with no risk to himself. House had learned a
great secret -- how to control a country. House didn't need to influence millions
of people, he need only influence a handful of men. The less the people knew
about him or what he was doing, the better off he was. House would profit from
remaining in the shadows. House would help establish a secret society in America
that would operate in the same fashion -- the Council on Foreign Relations.
In 1912, Woodrow Wilson (president of Princeton 1902-1910,
governor of New Jersey 1911-13) ran as a Democrat in a three man presidential
race. Howard Taft was the incumbent Republican. Former President Theodore Roosevelt
ran on the Progressive party ticket. Wilson's main financial genius and support
came from a group of directors of the House of Rockefeller's National City Bank
including: Cleveland H. Dodge, J. Ogden Armour, James Stillman, and William
Rockefeller. Otto
Kahn, and Jacob Schiff of the House of Kuhn-Loeb & Co. provided additional
financial support. The House of Morgan guided the Progressive campaign of Teddy
Roosevelt. Morgan partner George Perkins
provided Roosevelt with money, speeches, and men from Wall Street to help his
campaign. The House of Morgan also gave money to the Wilson campaign. The republican
vote was divided and Wilson was able to beat them both, won by a land slide,
and became 28th President of the United States. After the election Wilson's
financial backers provided him with their own agents to act as unofficial advisors.
Among these advisors was a young lawyer named Felix Frankfurter. Frankfurter
worked for the New York "establishment" law firm Hornblower, Byrne, Miller and
Potter. Another adviser was Edward Mandell House. Without House, Wilson may
never have become president. Wilson was nominated as Democratic candidate because
of support from William Jennings Bryan. Colonel House obtained Bryan's support
for Wilson. House became Wilson's closest unofficial advisor. The Round Table
Group had four pet projects, a graduated income tax, a central bank, creation
of a Central Intelligence
Agency, and the League of Nations.25 In the period between 1901 and 1913 the House of Morgan and the House of Rockefeller
formed close alliances with the Dukes and the Mellons. This group consolidated
their power and came to dominate other Wall Street powers including: Carnegie,
Whitney, Vanderbilt, Brown-Harriman, and Dillon-Reed. The Round Table Group
wanted to control the people. The Round Table Group would control the people
by controlling the government. The Round Table Group would control the government
by using the government to tax people and having the government deposit the
peoples money in a central bank. The Round Group would take control of the bank
and therefore have control of the money. The Round Table Group would take control
of the State Department and formulate government policy, which would determine
how the money was spent. The Round Table Group
would control the CIA which would gather information about people, and script
and produce psycho-political operations
focused at the people to influence them to act in accord with Round
Table Group State Department policy decisions. The Round Group would work
to consolidate all the nations of the world into a single nation, with a single
central bank under their control, and a single International Security System.
Between 1901-1913 the Establishment worked hard at achieving these goals. Some
of the men involved were American Round Table group members and insiders Allen
Dulles, John Dulles, Dean Rusk, Jerome Greene, James T. Shotwell, John H.
Davis, Elihu Root, and Philip Jessup, Felix Frankfurter, and Edward Mandell
House. Some of the first legislation of the Wilson Administration was the institution
of the graduated income tax (1913). An inheritance tax was also instituted.
These tax laws were used to rationalize the need for legislation that allowed
the establishment of tax-exempt foundations. The tax-exempt foundations became
the link between Round Table members private corporations and the University
system. The Round Table Group would control the Universities by controlling
the sources of their funding. The funding was money sheltered from taxes being
channeled in ways which would help achieve Round Table Group aims. With the
achievement of the graduated income tax, the American Round
Table Group focused on establishing the United
States central bank.