Whoa, in a nine-page statement David Koch claims that Cato president Ed Crane is siding with Obama supporters. Koch goes on and says:
1.Crane has launched a "scorched earth public relations campaign".
2. Others were told that if we did not back down, Ed would form a new organization, which presumably would leave Cato in ruins.
3.This has led to third parties such as Common Cause, a partisan activist group that has launched dishonest and violent attacks against us, to call for investigations into the tax-exempt status of Cato. It also has caused members of the far left, such as Center for American Progress, to side with Bob and Ed as yet another way to attack Charles and me. These attacks are by people and organizations that oppose the principles of a free society and only want to harm Cato and those who support it.Sadly, we have seen this tactic by Cato’s management before.
4.During the past decade, Charles and I gave more money to the Cato Institute – more than $13 million – than we had given in any previous decade. Notwithstanding all the wonderful things said about us when soliciting that support, in 2010, Ed became a source for Jane Mayer of The New Yorker, providing negative background on an article that was highly critical of Charles and me. This one-sided and politically motivated piece was driven by Obama supporters at the Center for American Progress as an attempt to prevent us from effectively opposing the Administration’s anti-libertarian agenda.
5. Ed has shown, he will partner with anyone – including those that oppose Cato and what it stands for – to further his personal agenda at the expense of others working to advance a free society.
6. We view Ed’s strategy as “Rule or Ruin” – he will either be allowed to rule Cato in the way he wants for as long as he wants, or he will try to ruin it.
7. major problem with Cato as it now exists is that it is not nearly as effective as it could be. This is, in large part, due to the behavior and management practices of its CEO – behavior that would have resulted in his termination from most corporations, let alone one that is supposed to exemplify the values of a free society, including integrity, value creation, creative destruction, humility, intellectual honesty, and treating others with dignity and respect. The fact that the current Cato board has allowed this behavior convinces us that a change is needed if Cato is to be more effective. Some directors have even suggested that Cato “belongs” to Ed. Having a board in thrall of the CEO has been the downfall of many nonprofits