Sons of Wichita: How the Koch Brothers Became America's Most Powerful and Private Dynasty

by Daniel Schulman

  64. “The Clark/Koch campaign was a fourfold disaster”: “The Clark Campaign: Never Again,” Libertarian Forum, September–December 1980.

  65. “SMASH THE CRANE MACHINE”: “Free Radical; Libertarian—and Contrarian—Ed Crane Has Run the Cato Institute for 25 Years. His Way,” The Washington Post, May 9, 2002.

  66. “we believe it would be difficult, if not impossible”: “It Usually Ends with Ed Crane,” Libertarian Forum, January–April 1981.

  67. “This action is illegal”: Ibid.

  68. had angered its benefactor: Interview with Justin Raimondo.

  69. “The massive shift of the Kochtopus to D.C.”: “The State of the Movement: The Implosion,” Libertarian Forum, September–December 1984.

  Chapter 7. The Divorce

  1. Christmas Day 1979: This account is drawn from a variety of sources, including Charles Koch’s trial testimony in Koch v. Koch Industries and In the Matter of the Estate of Mary R. Koch; Leslie Wayne’s 1986 interview with Mary Koch; and “Brothers at Odds,” The New York Times, December 7, 1986. Asked about this episode during the Koch v. Koch Industries trial, Bill responded, “I don’t remember that.”

  2. perceived Mary as cool and distant: “Wild Bill Koch,” Vanity Fair, June 1994.

  3. pressed her on the disposition of the family’s art collection: In the Matter of the Estate of Mary R. Koch, trial testimony of Charles Koch.

  4. “just leave her alone”: “Testimony Discloses Emotional Cost of Koch Family Split,” The Wichita Eagle, December 6, 1991.

  5. Bill laid into Charles: Leslie Wayne interview notes.

  6. a company lawyer had presented Bill with a draft estate plan: Koch v. Koch Industries, trial testimony of Bill Koch.

  7. Sobbing: “Brothers at Odds,” The New York Times Magazine, December 7, 1986.

  8. “He had a country-club attitude”: “Wild Bill Koch.”

  9. bleeding $90,000: “The Curse on the Koch Brothers,” Fortune, February 17, 1997.

  10. “Bill couldn’t get to work on time”: Ibid.

  11. The deal netted Koch $5 million: Koch v. Koch Industries, testimony of Bill Koch.

  12. Koch executives felt he could waffle: Leslie Wayne interview notes.

  13. Koch Carbon did not fare well: “The Curse on the Koch Brothers.”

  14. “Bill was never happy running a division”: Koch v. Koch Industries, trial testimony of Sterling Varner.

  15. “It was important for Bill to be important”: “The Curse on the Koch Brothers.”

  16. “He wanted unilateral authority”: Koch v. Koch Industries, trial testimony of David Koch.

  17. a surefire morale killer: Koch v. Koch Industries, trial testimony of Charles Koch.

  18. “We don’t want to go out and acquire the world”: Koch v. Koch Industries, trial testimony of Bill Koch.

  19. “He was very upset”: Koch v. Koch Industries, trial testimony of David Koch.

  20. “My emotions carried me away”: Ibid.

  21. “Prince Charles”: Ibid.

  22. Bill trashed Charles: Ibid.

  23. “What is the purpose of these attacks on me?”: Koch v. Koch Industries, trial transcript.

  24. returned criminal indictments: “Koch Industries Inc., Unit Officers Indicted on Conspiracy Charge,” Wall Street Journal, June 19, 1980.

  25. more than $1 billion: Koch v. Koch Industries, trial testimony of Bill Koch; also, “Former Koch Employee Testifies,” Topeka Capital-Journal, April 19, 1998.

  26. overcharging on sales of propane: “FEA Hits Koch Gas Prices,” The Wichita Eagle, April 11, 1975.

  27. “libertarian revolution causes”: Koch v. Koch Industries, trial testimony of Bill Koch.

  28. “the political philosophy of one man”: Koch v. Koch Industries (D. Kans., 1982), deposition of Bill Koch, December 20, 1982.

  29. about 6 percent: Koch v. Koch Industries, trial testimony of David Koch.

  30. “That was our religion”: Koch v. Koch Industries, trial testimony of Sterling Varner.

  31. “insatiable”: Koch v. Koch Industries, trial testimony of David Koch.

  32. nearly $4 million: Ibid.

  33. “literally over my dead body”: “Mr. Big,” Forbes, March 3, 2006.

  34. “the officers and directors would be in jail”: Koch v. Koch Industries, trial testimony of Bill Koch. Cordes said: “I testified fully to all of those facts some 16 years ago in a jury case and the jury found in our favor, so I really don’t remember any of the details. Billy made a lot of allegations that the jury rejected, so that’s all I can say.”

  35. had known about the illegal activities: Ibid.

  36. an eleven-page single-spaced letter: Koch v. Koch Industries, trial transcripts.

  37. “W.I.K. Has Leveled Serious Charges”: Ibid.

  38. “Charles Koch is the boss”: Ibid.

  39. “I don’t believe I have misread Bill’s intention”: Ibid.

  40. “I said I would live up to the rules of the corporation”: Koch v. Koch Industries, trial testimony of Bill Koch.

  41. “progress had been made in clearing up these harsh feelings”: Koch v. Koch Industries, trial testimony of David Koch.

  42. He was as uneasy as ever: Koch v. Koch Industries, trial testimony of Bill Koch.

  43. “If you have irrevocably decided that you cannot tolerate me”: Ibid.

  44. “Corporate democracy”: Ibid.

  45. Bill’s consortium: The share breakdown comes from Koch v. Koch Industries, trial transcripts and related documents filed in the case.

  46. The extent of his involvement: Koch v. Koch Industries, trial testimony of Frederick Koch.

  47. a homosexual blackmail attempt: “The Curse on the Koch Brothers.”

  48. “My primary effort”: Koch v. Koch Industries, trial transcripts.

  49. he told the banker a parable: Koch v. Koch Industries (1982), deposition of Bill Koch, December 21, 1982.

  50. Bill stepped into Charles’s office: The account of their meeting comes from Koch v. Koch Industries, trial testimony of Charles and Bill Koch.

  51. “One piece of advice”: “Secretive Koch Reveals Power Struggle,” The Wichita Eagle, July 10, 1982.

  52. He wanted to gauge where Frederick stood: Koch v. Koch Industries, trial testimony of David Koch.

  53. “Fred listened attentively”: Ibid.

  54. “I got this notice, Freddie, what’s going on?”: Ibid.

  55. the goal was not to remove Charles as CEO: In the Matter of the Estate of Mary R. Koch, trial testimony of Frederick Koch.

  56. “either the smartest or the luckiest thing I ever did”: J. Howard Marshall II, Done in Oil (Texas A&M University Press, 1994), p. 254.

  57. Marshall had reassured Koch’s worried CEO: Koch v. Koch Industries, trial testimony of Charles Koch.

  58. “What do we do now?”: Marshall, Done in Oil, p. 256.

  59. “there’s one thing that Howard III understands”: Koch v. Koch Industries, trial testimony of Charles Koch.

  60. he offered to double it: Ibid.

  61. brought the old man to tears: Ibid.

  62. stored in a safety-deposit box: Ibid.

  63. $140 a share: Koch v. Koch Industries, trial testimony of David Koch.

  64. their safety could not be guaranteed: Koch v. Koch Industries, trial testimony of James Linn. Don Cordes would later deny making a threat, saying, “This story developed a life of its own.” In addition to Linn, two members of the Simmons family remember this episode.

  65. He sent the presents back: Koch v. Koch Industries, trial testimony of Bill Koch.

  66. Charles told his mother: In the Matter of the Estate of Mary R. Koch, trial testimony of Charles and David Koch.

  67. “He was almost paralyzed”: “Wild Bill Koch,” Vanity Fair, June 1994.

  68. urged him to visit a Boston psychiatrist: Koch v. Koch Industries, Simmons plaintiffs’ statement, March 31, 1998.

  69. “I asked a number of questions”: Ibid.


  70. “Bill was a very demanding client”: Koch v. Koch Industries, deposition of Alfred Eckert, October 21, 1992.

  71. Another pressure point was publicity: Koch v. Koch Industries, deposition of Bill Koch, March 5, 1993.

  72. the corporate discord spilled into the press: “Family Feud at a Corporate Colossus,” Fortune, July 26, 1982.

  73. later turned out to be Bill: Koch v. Koch Industries, trial testimony of Bill Koch.

  74. Charles and David retaliated with a $400 million countersuit: “Court Filing Continues in Koch Feud,” The Wichita Eagle, January 11, 1983.

  75. “We came into this fight together”: Koch v. Koch Industries, deposition of Bill Koch, April 6, 1993.

  76. “horse trading to around $220”: Ibid.

  77. “I’m not going to go with their draft”: Ibid.

  78. “We’ve got our business affairs separated”: “Witness Recalls Charles Koch Snub,” Topeka Capital-Journal, April 10, 1998.

  79. a symbolic resolution: Koch Industries board resolution, 1984.

  Chapter 8. Mighty Mary

  1. She felt his absence most acutely: Mary expressed her feelings about the feud between her sons in correspondence introduced in a lawsuit over her will (In the Matter of the Estate of Mary R. Koch); Mary Koch to Bill Koch and Joan Granlund, October 26, 1984.

  2. she lay awake nights: Mary Koch to Bill Koch, undated.

  3. “made of stubborn Dutch stock”: Ibid.

  4. act of “character assassination”: Mary Koch to Bill Koch and Joan Granlund, July 14, 1982.

  5. “You have judged Charles”: Mary Koch to William and Joan Koch, October 19, 1982.

  6. “help me to mend bridges not destroy them”: Mary Koch to Frederick Koch, undated.

  7. “This conflict is tearing me down”: Mary Koch to Bill Koch, undated.

  8. “Please listen to me before I die!”: Mary Koch to Bill Koch and Joan Granlund, October 19, 1982.

  9. “I never was so relieved”: Mary Koch to Frederick Koch, June 16, 1983.

  10. “I trust & pray that you can find some business”: Mary Koch to Bill Koch, July 10, 1983.

  11. “emotionally wrenching”: Leslie Wayne interview notes.

  12. “Howard, I want you to do something for me”: In the Matter of the Estate of Mary R. Koch, testimony of Robert Howard.

  13. “My heart aches”: Mary Koch to Bill Koch, July 10, 1983.

  14. “The buying goes on relentlessly”: “The Great Victorian Hoard,” Daily Telegraph, October 30, 1986.

  15. “like a kid let out of reform school”: “The Curse on the Koch Brothers,” Fortune, February 17, 1997.

  16. “After eating so many gourmet meals”: “Build Your Own Playpen,” New England Business, September 1988.

  17. “The best thing that ever could have happened to me”: Ibid.

  18. more than $800 million: “Pulling the Wraps off Koch Industries,” The New York Times, November 20, 1994.

  19. “How could they have so much cash?”: “The Curse on the Koch Brothers.”

  20. The suit alleged: Koch v. Koch Industries, second amended complaint.

  21. “I don’t think the lawsuit has anything to do with money”: “Brothers at Odds,” The New York Times, December 7, 1986.

  22. “Now, that’s sibling rivalry”: “Forbes 400,” Forbes, October 28, 1985.

  23. Mary had sought companionship: Interview with Michael Oliver.

  24. “My mother was afraid of my father”: “Wild Bill Koch,” Vanity Fair, June 1994.

  25. “a woman of all seasons”: “Koch Family Matriarch Dies at 83,” The Wichita Eagle, December 23, 1990.

  26. deadly marksmanship: Ibid.

  27. “Charles was running the Foundation for his own benefit”: William I. Koch and Frederick R. Koch v. Charles G. Koch, et al. (18th Kan., 1988), deposition of Bill Koch, November 16, 1988.

  28. “I was dissatisfied”: William I. Koch and Frederick R. Koch v. Charles G. Koch, et al., deposition of Frederick Koch, December 6, 1988.

  29. tried to keep the peace: Mary Koch to Frederick Koch, May 13, 1985.

  30. dredged up Murray Rothbard: William I. Koch and Frederick R. Koch v. Charles G. Koch, et al., “Murray N. Rothbard—Summary of Anticipated Deposition Testimony,” April 3, 1989.

  31. “cannot tolerate dissent”: Ibid.

  32. A surreal courtroom scene: William I. Koch and Frederick R. Koch v. Charles G. Koch, et al., trial transcript.

  33. “Have you seen this?”: In the Matter of the Estate of Mary R. Koch, trial testimony of Robert Howard.

  34. “To hear William Koch tell it”: “Blood Feud,” Wall Street Journal, August 9, 1989.

  35. “In light of what they’re saying”: In the Matter of the Estate of Mary R. Koch, trial testimony of Robert Howard.

  36. a new clause to her will: The Last Will and Testament of Mary R. Koch, 1989.

  37. “killing Charles”: In the Matter of the Estate of Mary R. Koch, trial testimony of Robert Howard.

  38. Mary’s health deteriorated: Interview with Michael Oliver.

  39. belonged to the Hemlock Society: “For Close Relatives, a Suicide Can Bring Relief or More Suffering,” People, June 25, 1990.

  40. invited Mary to join them in a suicide pact: Interview with Michael Oliver.

  41. “All I want to do is see my children one more time”: Ibid.

  42. had to seek Liz’s permission: Ibid.

  43. “Mary doesn’t need you now, but I do”: Ibid.

  44. Liz called back the following day: Ibid.

  45. “These are my personal papers”: Ibid.

  Chapter 9. “My God, I’m Going to Die!”

  1. His shoes were off: “Recollections of My Survival of an Airplane Crash,” letter sent by David Koch to friends, February 13, 1991.

  2. David had a date: Interview with John Damgard.

  3. “Stay down, stay down, stay down!”: “Recollections of My Survival of an Airplane Crash.”

  4. scoured the floor for his loafers: Ibid.

  5. “I’m going to die!”: “The Price of Immortality,” Portfolio, October 15, 2008.

  6. “Oh, what the hell!”: “Recollections of My Survival of an Airplane Crash.”

  7. 58 messages: Ibid.

  8. crushing sense of guilt: “Cleared for Disaster,” Air Disasters, Smithsonian Channel.

  9. “This may sound odd”: “The Billionaire’s Party,” New York, July 25, 2010.

  10. “liked having a lot of women around”: “David Koch’s Ex: ‘I Was Just One of Many Girls’,” New York Observer, March 30, 2012.

  11. “Marla’s a babe”: “Ivana’s New Life,” New York, October 15, 1990.

  12. “a third of which were beautiful, wild, single women”: “A Personal Stake in Giving,” The Chronicle of Philanthropy, April 3, 2008.

  13. he served guests two meals: “Dave Koch Lives It Up,” Newsday, August 10, 1993.

  14. “gun-shy”: “Survival of the Richest,” Fame, November 1989.

  15. assistant to the fashion designer Adolfo: “Woman Ascending a Marble Staircase,” The New York Times, January 11, 1998.

  16. “It was the sort of place”: Donald Trump, Trump: The Art of the Deal (Ballantine, 1987), p. 95.

  17. “forward with my humor”: “The Billionaire’s Party,” New York, July 25, 2010.

  18. “Afterward we shook hands”: “Woman Ascending a Marble Staircase.”

  19. “David, we went out together”: Ibid.

  20. “Julia gave me two choices”: “Woman Ascending a Marble Staircase.”

  21. triple emerald cut diamond ring: “Birth Pangs for Patty, Mac,” New York Daily News, January 3, 1996.

  22. “many thought she’d be his trophy wife”: “Damp with an Occasional Spritz,” NewYorkSocialDiary.com, August 26, 2010.

  23. “the construction of Julia Koch”: “Woman Ascending a Marble Staircase.”

  24. chronicled Julia’s supposed high-society faux pas: “How New York Rejected Its Leading
Socialite,” New York Post, February 23, 1999.

  25. “Julia’s fingerprints were all over it”: Ibid.

  26. “I DON’T THINK WE’RE IN KANSAS ANYMORE”: “String Game: The Kochs Host a Joshua Bell Recital,” Women’s Wear Daily, January 6, 2012.

  27. “That puts the fear of God in you!”: “The Team Builder,” Philanthropy, Summer 2012.

  28. champagne-fueled Southampton soiree: “One Cheer for the Pony Express,” Rocky Mountain News, August 17, 1993.

  29. “The side effects”: “Donald Trump Doesn’t Have Support of Billionaire David Koch—Money-wise—as Presidential Candidate,” New York Daily News, May 3, 2011.

  30. “I’m a chemical engineer”: Hearing before the Government Activities and Transportation Subcommittee of the Committee on Government Operations, House of Representatives, 102nd Congress, “Aircraft Cabin Safety and Fire Survivability,” April 11, 1991.

  31. “Discovering that I had cancer”: “The Team Builder.”

  32. place a bet on the winner: “The Science of Giving,” Quest, October 2011.

  Chapter 10. The Art of War

  1. “Is that what you’re thinking?”: Paul C. Larsen, To the Third Power (Tilsbury House, 1995), pp. 26–27.

  2. “replaces the family harmony”: “On an Outside Tack,” The Boston Globe Magazine, April 19, 1992.

  3. “$30,000-a-month”: “Captain America,” Sports Illustrated, April 20, 1992.

  4. handed day-to-day control: Larsen, To the Third Power, p. 255.

  5. 200 people: Ibid., p. 195.

  6. glimpsing a virtual ocean: “Scientific Sailing Bill Koch Uses High Tech in Pursuit of America’s Cup,” Sun Sentinel, May 5, 1991.

  7. “the Gerald Ford of sailing”: “Koch, He’s the Real Thing,” Sports Illustrated, May 25, 1992.

  8. he spotted the Cup: Larsen, To the Third Power, p. 193.

  9. “I learned a lot about myself”: Ibid., p. 202.

  10. “The real issue is why did he want the Cup”: “Wild Bill Koch,” Vanity Fair, June 1994.

  11. “I can’t bet against my brother”: “Captain America,” Sports Illustrated, April 20, 1992.

  12. pledged $500,000: “Koch Spurs Plans for Downtown Boathouse,” The Wichita Eagle, August 29, 1992.