When the workers got violent: “Restraining Order Limits Pickets at Refining Plant,” Star Tribune, January 25, 1973; Paulson, interviews by author, 2015.
On Friday night, February 23: “3 Charged in Violence at Refinery,” Associated Press, February 28, 1973; “Koch Strikers’ Case Continued,” Pioneer Press, March 6, 1973; Paulson, interviews by author, 2015.
Around this time, Bernard Paulson’s wife: Paulson, interviews by author, 2015.
On the night of March 15: Paulson, Quinn, Tromberg, Payton, interviews by author, 2015; “Train Run into Struck Refinery,” Star Tribune, March 16, 1973; “Reward Set in Refinery Derailment,” Pioneer Press, March 17, 1973.
Charles Koch traveled to Pine Bend: Paulson, interviews by author, 2015.
After the crash . . . the OCAW: Paulson, Quinn, interviews by author, 2015; “Koch, Union Talks Planned,” Pioneer Press, March 26, 1973.
On the night of April 17, an OCAW man was driving: “Gunshots Fired Near Refinery, Police Hold Suspect,” Star Tribune, April 18, 1973; “Plant-Shooting Suspect Held,” Star Tribune, April 18, 1973; Grotjohn, Paulson, Payton, Tromberg, interviews by author, 2015.
On June 2, 1973, John Kujawa traveled to Washington: Hearings before the Subcommittee on Consumer Economics of the Joint Economic Committee, Congress of the United States, 251; Paulson, interviews by author, 2015.
Koch Refining Company offered a $25,000 reward: “Reward Set in Refinery Derailment,” Pioneer Press, March 17, 1973.
But Bernard Paulson and Charles Koch seemed to understand: Paulson, Payton, Quinn, Tromberg, interviews by author, 2015.
John Kujawa . . . did not talk about work: Martha Ann Kujawa, interview by author, 2015.
Paulson said that he was prepared to break: Paulson, Payton, Quinn, Tromberg, interviews by author, 2015.
On the evening of September 17: “Koch Workers Reject Offer,” Pioneer Press, September 18, 1973; “Koch Refining Strikers to Vote on Pact,” Star Tribune, September 22, 1973.
After the vote, Paulson gave the Teamsters an ultimatum: Paulson, Payton, Quinn, Tromberg, interviews by author, 2015.
On the evening of September 23: “Employees End Koch Strike,” Pioneer Press, September 24, 1973; “Koch Refining Workers Going Back to Work,” Minneapolis Star, September 24, 1973.
OCAW workers like Ernie Tromberg and Joe Quinn: Paulson, Quinn, Tromberg, interviews by author, 2015.
The OCAW agreed . . . Koch Refining: Paulson, Payton, Grotjohn, Quinn, Tromberg, interviews by author, 2015. Changes to the OCAW after the 1973 strike were also described by two sources, speaking on background, who currently work for the United Steelworkers union, which absorbed the OCAW many years after the strike of 1973. Sources also provided two labor contracts for the purpose of comparison with earlier agreements: USW Labor Agreement with Flint Hills Resources: November 3, 2006–June 13, 2011; and USW Labor Agreement with Flint Hills Resources: October 17, 2012–June 17, 2016. The sources provided a copy of the current USW labor contract for workers at Pine Bend, which could be compared with the 1972 contract as described by retired employees.
Decades later . . . a sense of admiration, and almost awe: Markel, Hall, Paulson, and three former senior Koch Industries sources speaking on background, interviews by author, 2013–17.
Charles Koch didn’t have any time to celebrate: Charles Koch, Good Profit, 53–54.
On September 24, the St. Paul Pioneer Press: “Nixon Asks Wide Energy Power,” Pioneer Press, November 26, 1973.
CHAPTER 4: THE AGE OF VOLATILITY INTENSIFIES
The trouble started on October 6, 1973: Yergin, The Prize, 606–9.
The price shock caused a calamity: Charles Koch, Good Profit, 53–54; Hall, interviews by author, 2013–15.
Charles Koch . . . profit from them: Koch, Markel, Hall, Paulson, Williams, background sources, interviews by author, 2013–17; Leonard, “The New Koch.”
Even in the face of a downturn . . . long-term profitability: Paulson, interviews by author, 2015; court transcripts and exhibits William I. Koch et al. v. Koch Industries Inc. et al.
Bernard Paulson moved to Wichita: Paulson, interviews by author, 2015.
Charles Koch quickly grasped the potential: Paulson, Hall, interviews by author, 2013–15.
The strategy worked: William I. Koch et al. v. Koch Industries Inc. et al., Jury Trial Transcript, vol. 52, 5011.
Koch Industries’ own confidential financial documents . . . company’s fortunes: Koch Industries Consolidated Income Summary, 1981–1982, presented at Koch Industries Board of Directors Meeting, March 15, 1983.
Bernard Paulson was often contacted: Paulson, Hall, interviews by author, 2015.
Information analysis was only part of the strategy: Paulson, Markel, Hall, interviews by author, 2013–15.
When Markel arrived at the club: Markel, interviews by author, 2013–14.
Charles Koch told Markel that he was sorry: Ibid.
Like many other people at the company, Markel: Markel, Hall, and former senior Koch Industries source speaking on background, interviews by author, 2013–14.
Koch made full use of this strategy: Williams, interviews by author, 2014.
During this time . . . thinkers like Hayek and von Mises: Charles G. Koch, “Anticapitalism and Business,” address to the Institute for Humane Studies, April 27, 1974.
On November 7, 1973 . . . sweeping government response: Vietor, Energy Policy in America since 1945, 238–52; Joseph P. Kalt, Economics and Politics of Oil Price Regulation: Federal Policy in the Post-Embargo Era (Cambridge, MA: MIT Press, 1981), 9–15; Rick Perlstein, The Invisible Bridge: The Fall of Nixon and the Rise of Reagan (New York: Simon & Schuster, 2014), 162–63.
“It will be essential . . . to live and work in lower temperatures”: Richard Nixon, address to the nation, November 8, 1973, www.youtube.com/watch?v=iuvEVwox5L8.
FDR’s actions were a response to decades of economic stagnation: Michael Lind, interview by author, 2014; Joshua Waimberg, “Lochner v. New York: Fundamental Rights and Economic Liberty,” Constitution Daily (blog), National Constitution Center online, last modified October 25, 2015; Doris Kearns Goodwin, The Bully Pulpit: Theodore Roosevelt, William Howard Taft, and the Golden Age of Journalism (New York: Simon & Schuster, 2013); Arthur M. Schlesinger Jr., The Age of Roosevelt, vol. 1, The Crisis of the Old Order (Boston: Houghton Mifflin, 1957).
When FDR was elected in 1932 . . . the hands-off era came to an end: Kennedy, Freedom from Fear; Arthur M. Schlesinger Jr., The Age of Roosevelt, vol. 2, The Coming of the New Deal (Boston: Houghton Mifflin, 1958); Hacker and Pierson, American Amnesia.
The council put a hard cap on “old” oil of $5.25 per barrel: CAW, “National Energy Goals and FEA’s Mandatory Crude Oil Allocation Program,” Virginia Law Review 61, no. 4 (May 1975): 903–37.
This incensed Charles Koch: Koch, “Anti-Capitalism and Business,” April 27, 1974; Charles G. Koch, letter in support of the Libertarian Party, addressed to “Dear Rocky Mountain Oilman,” dated December 23, 1975.
He owned a small bookstore . . . conservative literature: “Two Birch Society Members Open Book Store,” Wichita Eagle, July 15, 1975.
He attended and gave money to the Freedom School: Jane Mayer, Dark Money: The Hidden History of the Billionaires Behind the Rise of the Radical Right (New York: Doubleday, 2016), 44–46.