Hoovergate (May/June 1992 | Volume: 43, Issue: 3)

Hoovergate

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Authors: Barton J. Bernstein

Historic Era: Era 8: The Great Depression and World War II (1929-1945)

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May/June 1992 | Volume 43, Issue 3

Lawrence O’Brien, the head of the Democratic National Committee at the time of the Watergate break-in, was not the first O’Brien burglarized on behalf of the GOP. Forty-two years earlier, James J. O’Brien, a suspected Tammany Hall ally and two-bit blackmailer, was the target of another Republican administration. In 1930, however, the burglars were drawn not from the CIA and disgruntled Cuban émigrés, but from American Naval Intelligence. The mastermind behind this conspiracy was a millionaire friend of Herbert Hoover’s who was an officer in the Naval Intelligence Reserve and claimed to be acting under the President’s authority.

The main evidence for this strange story, so reminiscent of Watergate, appears in the recently uncovered diary of Glenn Howell, who, in 1930, was the director of Naval Intelligence for the New York City area. Howell was no stranger to break-ins and espionage against his fellow citizens. In his 1930 diary, he speaks confidently of infiltrating and spying on Communist cells and then arranging for break-ins and the theft of their files. But one particular job made him nervous.

On May 21, 1930, Howell met with the financier Lewis Strauss—Hoover’s friend, who was a lieutenant commander in the Naval Intelligence reserve—and Strauss told him that James J. O’Brien, a former New York City policeman who had been dismissed from the force in 1908, was planning to publish documents embarrassing to Hoover. Strauss said that the president wanted to see what O’Brien had, and had authorized him to “utilize the services of any of our various secret services” to find out. Also present at this meeting was Lieutenant Commander Paul Foster, who was both Strauss’ friend and Howell’s predecessor as head of local Navy Intelligence. Foster, a Medal of Honor winner in Mexico in 1914, had resigned from the Navy the year before and entered business, possibly with Strauss’s aid.

Here is Howell’s account of the meeting and the events that followed:

May 21, 1930:

I left at four for the offices of Kuhn, Loeb and Company at 52 William Street, where Paul Foster and I had an appointment with Lewis Strauss. It is an extraordinary thing that he wants of me, and I think that I am reasonably safe in setting this down here with the understanding that whoever may chance to read these lines will keep his mouth shut until the passage of time makes silence unnecessary.

Now, a book which has obtained a heavy circulation this year is The Strange Death of President Harding, an astounding—if true—set of charges preferred by one of the former White House detectives. There was probably a lot in Mr. Harding’s life that would not bear the light of day.

Now, Lewis Strauss is a millionaire. He is married to the daughter of the Loeb of Kuhn, Loeb and Company. He is a partner in this noted banking firm. Another partner is William Wiseman, head of the British Intelligence Service in America during the World War and supposed by