In April of 1974, Charles Koch gave a speech at a gathering in Dallas: Koch, “Anti-Capitalism and Business,” April 27, 1974.
By 1975 . . . not going to go under: Hall, Markel, Paulson, interviews by author, 2013–15; Charles Koch, Good Profit, 54–56.
Standing before the gathering of his brain trust: Paulson, interviews by author, 2015.
To a remarkable extent . . . pushed out: Paulson, Markel, Hall, Williams, Watson, interviews by author, 2013–15.
CHAPTER 5: THE WAR FOR KOCH INDUSTRIES
Bill Koch became a full-time Koch Industries employee in 1975: William I. Koch et al. v. Koch Industries Inc. et al., Jury Trial Transcript, vol. 56, 5468; Roskind, interviews by author, 2015.
Koch’s trading division . . . virtually every American: Howell, Roskind, Hall, background sources, interviews by author, 2013–16; The Global Source for Commodities: Koch Supply & Trading, company overview brochure, 2013; Charles Koch, The Science of Success, appendix A: “Products Traded,” 167.
Bill came across . . . graduated from MIT: Roskind, Hall, interviews by author, 2013–15; Burrough, “Wild Bill Koch.”
As a trader, Roskind . . . industrial chemicals: Roskind, interviews by author, 2015.
Roskind went to Wichita . . . met Bill Koch’s older brother: Ibid.
Roskind’s office opened at eight thirty . . . trading began almost immediately: Ibid.
Chemical trading wasn’t a simple matter of buying low and selling high: Roskind, Howell, Hall, background sources, interviews by author, 2013–16.
Like all senior executives at Koch Industries . . . provide updates: Herbert, Hall, Markel, Paulson, background sources, interviews by author, 2013–16.
After his successes . . . Bill Koch got a promotion: Roskind, Hall, interviews by author, 2013–16; William I. Koch et al. v. Koch Industries Inc. et al., Jury Trial Transcript, vol. 21, 1999.
One of Bill’s staffers . . . Brad Hall: Hall, interviews by author, 2013–18.
Bill Koch became enamored of the kind of data-driven analysis: Ibid.
Early in the afternoon, Bill Koch called the office to check in on Hall’s progress: Ibid.
Hall finished the Monte Carlo simulations: Ibid.
Like all vice presidents . . . battery of probing questions: Ibid.; William I. Koch et al. v. Koch Industries Inc. et al., Jury Trial Transcript, vols. 21, 23, 24, and 28.
Bill’s requests . . . started to take an accusatory tone: William I. Koch et al. v. Koch Industries Inc. et al., Jury Trial Transcript, vols. 52–59.
There was a problem at a Koch Industries office in Denver: William I. Koch et al. v. Koch Industries Inc. et al., Jury Trial Transcript, vol. 57, 5494–546.
Bill Koch was doing more than asking questions: William I. Koch et al. v. Koch Industries Inc. et al., Jury Trial Transcript, vol. 52, 5089; vol. 54, 5263–72; vol. 57, 5506.
On April 27, 1980 . . . a handwritten note: William I. Koch et al. v. Koch Industries Inc. et al., Jury Trial Transcript, vol. 52, 5089; vol. 54, 5271.
On June 12, 1980, he sent a memo to Charles: William I. Koch et al. v. Koch Industries Inc. et al., Jury Trial Transcript, vol. 52, 5089; vol. 54, 5274.
In a lengthy interview with Vanity Fair: Burrough, “Wild Bill Koch.”
Charles called Bill at the end of June: William I. Koch et al. v. Koch Industries Inc. et al., Jury Trial Transcript, vol. 52, 5089; vol. 59, 5731–34.
The memo was ten pages long, single-spaced: William I. Koch et al. v. Koch Industries Inc. et al., Jury Trial Transcript, vol. 54, 5284.
In early July, Koch Industries held an emergency meeting: William I. Koch et al. v. Koch Industries Inc. et al., Jury Trial Transcript, vols. 21 and 54.
Starting in 1980 . . . political activity: Confessore, “Quixotic ’80 Campaign.”
Chris Hocker, wrote Charles Koch a thank-you letter: Chris Hocker, letter to Charles Koch, dated July 14, 1978.
Charles Koch advised . . . over the years: Charles Koch, letter to Chris Hocker, dated February 13, 1978.
He wrote a Libertarian campaign letter in 1975: Charles G. Koch, letter in support of the Libertarian Party, addressed to “Dear Rocky Mountain Oilman,” dated December 23, 1975.
While Charles Koch . . . David Koch contacted the Libertarian Party: Confessore, “Quixotic ’80 Campaign.”
Charles wanted to share his thoughts on two issues: William I. Koch et al. v. Koch Industries Inc. et al., Jury Trial Transcript, vol. 54, 5306.
“I said, ‘Bill, what? Why are you doing this?’ ”: William I. Koch et al. v. Koch Industries Inc. et al., Jury Trial Transcript, vol. 54, 5314.
The day after Thanksgiving, Charles got a call from David: William I. Koch et al. v. Koch Industries Inc. et al., Jury Trial Transcript, vol. 55, 5322.
Charles Koch boarded a private jet Thanksgiving weekend: William I. Koch et al. v. Koch Industries Inc. et al., Jury Trial Transcript, vol. 55, 5327–40.
When they were children . . . polo mallet: Burrough, “Wild Bill Koch.”
There was a board meeting on December 5: William I. Koch et al. v. Koch Industries Inc. et al., Jury Trial Transcript, vol. 55, 5334–42.
Charles pressed his case . . . a convincing one: William I. Koch et al. v. Koch Industries Inc. et al., Jury Trial Transcript, vol. 52, 5085–86.
Bill and Fred Koch . . . Charles and David: Brian O’Reilly and Patty De Llosa, “The Curse on the Koch Brothers,” Fortune, February 17, 1997; Boulton, “Koch and His Empire.”
When it came time to close the deal . . . Brad Hall: Hall, interviews by author, 2013–14.
CHAPTER 6: KOCH UNIVERSITY
In the early 1980s . . . Charles Koch began to reveal: Markel, Hall, Paulson, Dubose, interviews by author, 2013–15.
These teachings—the “classic Sterling” guidelines: Ibid.; Boulton, “Straight-shooting to the Top.”
W. Edwards Deming was not simply a business consultant: David Halberstam, The Reckoning (New York: William Morrow, 1986), 311–18.
“Deming’s passion was for making better products”: Ibid.
After rising through the company ranks: Dubose, interviews by author, 2014–15.
All the while, he was in contact with managers from Wichita: Ibid.
One of the most important elements . . . the need to expand: Markel, Hall, Paulson, Watson, background sources, interviews by author, 2013–15; Leslie Wayne, “Pulling the Wraps Off Koch Industries,” New York Times, November 20, 1994.
Brooks was part of a small cadre . . . in the mid-1980s: Markel, Hall, interviews by author, 2013–14; Wayne, “Pulling the Wraps Off”; Boulton, “Koch and His Empire.”
Over time . . . blue-sky studies: Hall, interviews by author, 2013–14.
The development group made its first major deal: Paulson, interviews by author, 2015.
In September of 1981, Koch Industries paid $265 million: Phillip Wiggins, “Sun to Sell a Refinery to Koch,” New York Times, September 25, 1981.
In 1987, Phil Dubose got the promotion: Dubose, interviews by author, 2014–15; “Koch Brothers Head Back to Federal Court in Latest Squabble,” Associated Press, October 1, 1999; Loder and Evans, “The Secret Sins of Koch Industries.”
CHAPTER 7: THE ENEMIES CIRCLE
The issue of oil theft . . . focused exclusively on Koch Industries: Transcript of the Public Hearings of the Select Committee on Indian Affairs, May 9, 1989; Ballen, Elroy, DeConcini, background source, interviews by author, 2014–16.