Smedley Butler
November 21, 1934: The New York Post and the Philadelphia Record break the story of what came to be known as "The Business Plot," a rich men's plan to launch a military coup and take over the American government.
The story is broken by Paul Comly French, a reporter who had once been the private secretary of Smedley Butler, a retired Major General (2 stars) in the U.S. Marine Corps.
Smedley Darlington Butler was born on July 30, 1881, in the Philadelphia suburb of West Chester, Chester County, Pennsylvania. His father, Thomas Stalker Butler, was a Republican Congressman. His maternal grandfather, Smedley Darlington, had previously held the same seat in Congress. Three earlier Darlingtons had served in Congress. Smedley's aunt, Isabel Darlington, was the 1st woman to practice law in Chester County.
He enlisted in the Marines, and served with distinction in the Spanish-American War, the Philippine Campaign and the Boxer Rebellion. His participation in the so-called "Banana Wars" in Central America caused him to look at war and its conduct differently.
He received his 1st Congressional Medal of Honor for his service in the American occupation of Veracruz, Mexico in 1914. He offered to return it, saying he had done nothing to earn it. He was ordered to keep it. He received a 2nd Medal of Honor for his role in repelling an ambush during the American occupation of Haiti in 1915.
He received his General's stars during World War I, and was appointed commanding officer of the Marine barracks at Quantico, Virginia, now the "home base" of the Corps (and of the FBI). In 1924, President Calvin Coolidge gave him leave from active duty so that he could become Director of Public Safety for Philadelphia.
He said, "Cleaning up Philadelphia was worse than any battle I was ever in." He brought crime down significantly, but his tactics were a bit heavy-handed. Still, there were many people who liked that, and they remembered it, thinking that Butler was their kind of man. He held the job for 2 years, returned to the Corps, and retired from the service in 1931.
He ran for the U.S. Senate in Pennsylvania in 1932, but, with the tide turning against Prohibition, which he supported, he lost the Republican Primary. He opposed the Bonus Army in a public statement that year, and there were many people who liked that.
That year, Governor Franklin D. Roosevelt of New York, a Democrat, was elected President of the United States. His "New Deal" lifted millions out of poverty, increasing taxes on rich people in order to do it. America's wealthiest men were furious, and some were not willing to wait until November 3, 1936, the next election, to do something about it.
In November 1934, Butler testified before a special committee of the U.S. House of Representatives. He told them that he was visited by Gerald P. MacGuire, a prominent Connecticut businessman. MacGuire had visited Germany and Italy, and saw how veterans' groups had aided the Fascist movements there, movements that had stopped Communist uprisings. He told Butler that he viewed FDR and his advisors, the so-called "Brain Trust," as Communists, and said they had to be stopped.
He told Butler that a group of businessmen had $50 million to spend, and a private army of 500,000 ex-soldiers, many of them members of the American Legion, ready to march on Washington, to remove Roosevelt from power, and establish a Fascist dictatorship. MacGuire told Butler that the group wanted him to be the dictator.
Butler said that he later met with Robert Sterling Clark, an heir to the Singer sewing machine fortune. Clark told him about some of the other men backing the plan:
* Irénée du Pont, head of the DuPont Corporation, which had recently bought the Remington Arms company, which would produce the weapons and the ammunition for the coup.
* Thomas W. Lamont, running J.P. Morgan & Company on behalf of J.P. Morgan Jr., son of the company's founder, and an adviser to every President since Woodrow Wilson, including FDR, thus giving the group an "inside man."
* Grayson Murphy, a director of Goodyear Tire, Anaconda Copper, and Bethlehem Steel, all companies capable of supplying the coup effort with necessary materiel.
* And the last 2 Democratic Party nominees for President before FDR: John W. Davis, a former Congressman from West Virginia and U.S. Ambassador to Britain, who was always more conservative than the mainstream of the Party; and Alfred E. Smith, who was also FDR's predecessor as Governor of New York, had lost very badly to Herbert Hoover in 1928, saw FDR beat Hoover even worse in 1932, and was intensely jealous of FDR's early success and popularity as President.
About all of this, Butler told French, whom he trusted due to his service. French did some digging, and found evidence that the plot was real, not just MacGuire and Clark blowing off steam at a President they hated. Armed with this knowledge, Butler met with MacGuire again, and said, "If you get 500,000 soldiers advocating anything smelling of Fascism, I am going to get 500,000 more, and lick the hell out of you, and we will have a real war right at home." And then he went to Congress, and spilled the beans.
French broke the story in the New York Post and the Philadelphia Record on November 21. On November 22, The New York Times wrote about it, calling it a "gigantic hoax." All the parties alleged to be involved publicly said there was no truth in the story, calling it a joke and a fantasy. Roosevelt's reaction to it is not known to have been recorded.
If the coup ever got beyond the talking stage, it was doomed without a leader -- or, more likely, a figurehead. It has been alleged that Hugh S. Johnson, a retired Army Brigadier General who had been running the National Recovery Administration for FDR, and had been named Man of the Year for 1933 by Time magazine, had also turned the plotters down.
In 1935, Butler published a book titled War Is a Racket, comparing what Dwight D. Eisenhower would later call "the military-industrial complex" to organized crime. He wrote, "I spent most of my time as a high class muscle man for Big Business... a gangster for capitalism" who "might have given Al Capone a few hints." That book, all by itself, showed that the big business boys were looking to the wrong man for their goal.
Plaque honoring Butler, Philadelphia City Hall:
"He enforced the law impartially,
he defended it courageously, he proved incorruptible."
MacGuire died of pneumonia shortly before Butler published his book. Grayson Murphy died in 1937, Smedley Butler in 1940, Hugh Johnson in 1942, Al Smith in 1944, Thomas Lamont in 1948, John W. Davis in 1955, Robert S. Clark in 1956, Paul French in 1960, and Irénée du Pont in 1963.
In 2018 and 2022, Thomas Lamont's great-grandson, Edward Miner Lamont Jr., a.k.a. Ned Lamont, was elected Governor of Connecticut -- as a liberal Democrat. He has conducted the office very differently from what his ancestor would have hoped.
This month, Donald Trump won -- or, perhaps, "won" -- the Presidential election, needing only business lords like Rupert Murdoch and Elon Musk to re-shape public opinion for him. He won't need a respected General to be a figurehead for him. After all, he still believes what he said in 2015: "I know more than the generals do."