The spotlight is once again shining on Marc Rich. This time, Rich is represented by former Clinton counsel Jack Quinn, while Republicans Dan Burton and Arlen Specter are leading the charge, raising questions about trading with the enemy, tax evasion and influence-peddling. Just nine years ago, similar questions were raised in hearings before the Committee on Government Operations in the Democrat-controlled Congress. Back then Republicans kept silent; Rich was represented by former Nixon attorney Leonard Garment and William Bradford Reynolds, assistant attorney general in the Reagan Justice Department. The committee was investigating how Rich, America's most-wanted white-collar criminal, received more than $65 million in government grain-export subsidies, which he used to sell wheat and barley at enormous profit overseas, and how he had captured a lucrative deal to sell more than $20 million in nickel, zinc and copper to the US Mint.
Until we began research for our book Ravenswood: The Steelworkers' Victory and the Revival of American Labor, we, like most Americans, had never heard of Marc Rich. In 1990, 1,700 aluminum workers, locked out of their plant in a small town in West Virginia, discovered that their company was ultimately controlled by the elusive Rich. Over the next two years, their union, the United Steelworkers of America, mounted an ambitious strategic campaign [see David Corn, "The Union and the Billionaire," February 24, 1992]. The Steelworkers' investigations, which led to the hearings, revealed the vastness of Rich's holdings. It was said that Rich owned "49 percent of the world"--from oil tankers to zinc mines to aluminum smelters to luxury hotels. Despite having a controlling interest in almost every metal and agricultural commodity on the world market, there was very little that Rich owned outright. This arrangement enabled him to establish profitable relationships with businesses and governments that might otherwise have been squeamish about associating with him.
The Steelworkers were also shocked to discover that the Justice Department was not actively pursuing his case. The union quickly got a taste of Rich's ruthlessness. Early in the campaign, the local and national union leaders received a series of death threats, delivered by phone and in person, saying, "You'd better stop or you're going to get hurt.... You don't know who you're up against."
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