Excerpt from Richard G. Kleindienst-Resumed, Vol. 2: Hearings Before the Committee on the Judiciary, United States Senate, Ninety-Second Congress, Second Session; March 2, 3, 6, 7, 8, 9, 10, 14, 15, 16, 26, and 29, 1972

He again prefaced his remarks by telling me who he was, his position with the company, that he was not a lawyer, that he was a financier and an economist. He also, _i think, by way of introduction, stated that he had no political credentials by which to introduce him self to me. That as a matter Of fact, he was an economic adviser to Senator Muskie in his national campaign, and was on his finance committee. He then said that in substance, he was not there to make any legal arguments, and that for the purpose of our discussion he would assume - he did not concede it, but that we could assume that the Department of Justice would be successful in its prosecution of all three Of these cases. The record up to that time had not shown great success by the Department Of Justice, but he said, let us assume that ultimately you are going to prevail in all of these cases, and that the reason that he wanted to talk to me was not that we were going to succeed, but what would happen if we did, because he came there to tell me the rather drastic economic consequences that would accrue to i.t. T. And Hartford if i.t. T. Was required to divest that company. He said that among other things, the stockholders Of both companies would suffer a loss in excess Of $1 billion in the value Of their stock. He indicated to me that as a result Of the manner in which they acquired the company and the tax consequences of the divestiture that i.t. T. Would have to pay out $400 or $500 million, and that that would have a very drastic effect upon the liquidity of their com pany. He indicated to me that a lack Of liquidity would interfere with their ability to perform some $200 million or $300 million of contracts abroad, that would have a certain effect on our balance Of payments.

Incidentally, I have been reminded that this meeting on April 20 occurred in 1971 and not 1969. That was an oversight on my part.

That that would interfere with our balance Of payments abroad, and deprive an American company Of an ability to compete favorably overseas in a particular market. And then I think he terminated his remarks by saying also if they accrued - these consequences to i.t. T. - taking into account the condition Of the economy at that time, that it might have additional repercussions SO far as the general stock market was concerned.

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