Richard Mellon Scaife

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Richard Mellon Scaife
Born (1932-07-03)July 3, 1932
Pittsburgh, Pennsylvania, USA
Died July 4, 2014(2014-07-04) (aged 82)
Pittsburgh, Pennsylvania
Alma mater

Deerfield Academy

University of Pittsburgh
Employer Owner of Pittsburgh Tribune-Review
Known for Conservative political involvement
Newspaper owner
Mellon family heir
Political party
Republican
Spouse(s) Frances L. Gilmore (div.)
Margaret “Ritchie” Battle (div.)
Children Jennie K. Scaife
David N. Scaife
Parents Sarah Mellon
Alan Scaife
Relatives Cordelia Scaife May (sister)

Richard Mellon Scaife (July 3, 1932 -- July 4, 2014) was an American billionaire, a principal heir to the Mellon banking, oil, and aluminum fortune, and the owner and publisher of the Pittsburgh Tribune-Review. In 2005, Scaife was number 238 on the Forbes 400, with a personal fortune of $1.2 billion. By 2013, Scaife had dropped to number 371 on the listing, with a personal fortune of $1.4 billion.

Scaife was also known for his financial support of conservative public policy organizations over the past four decades. He provided support for conservative and libertarian causes in the United States, mostly through the private, nonprofit foundations he controlled: the Sarah Scaife Foundation, Carthage Foundation, and Allegheny Foundation, and until 2001, the Scaife Family Foundation, now controlled by his daughter Jennie and son David.[1][2] Scaife also helped fund the Arkansas Project, a campaign to investigate Bill Clinton's past business and personal affairs.

Early life[edit]

Scaife was born in Pittsburgh, Pennsylvania, to Alan Scaife, the head of an affluent Pittsburgh family, and Sarah Mellon, who was a member of the influential Mellon family, one of the most powerful families in the country. Sarah Mellon Scaife was the niece of former United States Secretary of the Treasury Andrew W. Mellon. She and her brother, financier R.K. Mellon, were heirs to the Mellon fortune that included Mellon Bank and major stakes in Gulf Oil and Alcoa aluminum.

Scaife attended high school at Deerfield Academy in Deerfield, Massachusetts. He was expelled from Yale University in New Haven, Connecticut, in the aftermath of a drunken party and later attended the University of Pittsburgh where his father was chairman of the board of trustees. Scaife graduated with a bachelor's degree in English in 1957.[3][unreliable source?]

Scaife inherited positions on several corporate boards in 1958, when his father Alan died unexpectedly. However, his family had become estranged from his uncle, R. K. Sciafe, who retained control of the companies. His mother encouraged him to get involved in the family's philanthropic foundations, and he did so. (See management of Scaife family foundations.)

He inherited much of the Mellon fortune when his mother died in 1972.[4] A portion of the fortune was placed in trust funds and the rest in foundations.[4] The trusts expired in 1985 and, per tax law, the foundations must give away 5% of their assets per year. Disbursements from each foundation are done through boards of directors.[4]

In 1973, he became estranged from his sister Cordelia Scaife May and he took control of many of the family foundations while Cordelia supported her own charities, including Planned Parenthood and the National Aviary in Pittsburgh. Shortly before her death, the siblings reconciled, and he eulogized her in January 2005,[5] lauding "Cordy" for devoting her life and resources to "worthwhile causes".[6]

Business[edit]

Purchase of the Pittsburgh Tribune-Review[edit]

In 1970, Scaife purchased a small market newspaper, then known as the Tribune-Review. The paper was based in Greensburg, Pennsylvania, the county seat and center of Westmoreland County's population of 376,935, located about 30 miles southeast of Pittsburgh. For a number of years, the paper was published and distributed only in the Westmoreland County area.[7]

Scaife made headlines in the fall of 1973, when a Tribune-Review reporter was fired for making the remark "one down and one to go" during the Watergate era when Vice President Spiro T. Agnew resigned over corruption charges dating back to his days as governor of Maryland. When the reporter's fellow staffers demanded an explanation at a meeting with Scaife, his defiant response led a number of them to quit though a few later returned. The paper was frequently accused of bias, especially toward that era's overwhelmingly Democratic political officeholders in the county.

In 1992, the two main newspapers in Pittsburgh were embroiled in a lengthy labor dispute that ultimately led the larger paper, the Pittsburgh Press, to cease operations, and for the remaining paper, the Pittsburgh Post-Gazette, to suspend publication for nearly six months until the Post-Gazette acquired the Press late that year.[8] During this time frame, Scaife expanded operations of the newspaper into Pittsburgh and renamed the paper the Pittsburgh Tribune-Review. Though the name changed, and there are several satellite offices in and around Pittsburgh, the newspaper's headquarters remain in Greensburg, about thirty-five miles east of Pittsburgh near Scaife's home.

Leadership and media interests[edit]

The Pittsburgh Tribune-Review continues to challenge the Post-Gazette in the Pittsburgh media market. Twelve years after Scaife's newspaper began publishing, the Post-Gazette reported major financial losses, and the unions representing its employees agreed to wage concessions to keep it afloat. Unlike Scaife, the owners of the Post-Gazette, the Block family, were unwilling to sustain major losses year after year. According to the Scaife divorce papers, Richard Scaife has consistently spent between $20 and $30 million per year to cover the Tribune-Review's losses.[9] According to the Audit Bureau of Circulation, the Trib has a combined 221,000 regional circulation, about 7,000 subscribers fewer than its competitor.

In 2005, the Pittsburgh Tribune-Review announced that operations of its suburban editions would be consolidated, with "staff reductions" in the newsrooms, business, and circulation departments.[10] Two managers were laid off immediately along with several other staff members later in 2005.

With Scaife as publisher, the small circulation newspaper was the chief packager of editorials and news columns claiming that then United States President Bill Clinton or his wife, then First Lady Hillary Rodham Clinton were responsible for the death of Deputy White House counsel Vince Foster. Scaife paid freelancer Christopher Ruddy to write about the Foster case for the Tribune-Review and other right-leaning media.[11] Special Prosecutor Ken Starr, appointed to investigate Clinton, concluded that Foster committed suicide.[12][13]

In 2004, Scaife was reported to own 7.2 percent of Newsmax Media, a news-based Web site with conservative political content founded by Ruddy in 1998.[14] In 2009, Scaife reportedly controlled 42% of NewsMax, with Ruddy the 58% majority owner, CEO and editor.[15]

Scaife also owned a majority interest in Pittsburgh-based all-news radio station KQV.

Scaife was prior to 1994 an influential board member of the former Sacramento Union newspaper in the state capital of Sacramento, California.[16]

Politics and philanthropy[edit]

Scaife's interest in politics was influenced by several factors.

  • his grand uncle Andrew W. Mellon was the United States Secretary of the Treasury under three Presidents and a champion of Laissez-faire economics.
  • His father served with the Office of Strategic Services (OSS) during World War II and the family lived in Washington, D.C. for a time. (The various functional units of the OSS were reconstituted in 1947 as the Central Intelligence Agency; see How the OSS became the CIA in the OSS article.)
  • He was influenced by Robert Duggan, his sister Cordelia's fiancé, who later became her husband. Scaife worked on Duggan's political campaigns and Duggan was twice elected Allegheny County District Attorney. Duggan helped Scaife become a committeeman in the Allegheny County Republican Party in 1956. In 1974, however, Duggan killed himself with a shotgun, hours before he was indicted by a grand jury for income tax evasion and racketeering.
  • Scaife involved himself in the 1964 presidential campaign of Barry Goldwater, with whom his mother was acquainted.

The inherited Mellon fortune allowed Scaife to pursue his political activism. In 1965, when Sarah Scaife died, Scaife inherited not only financial increase, but also a new influence over the family foundations.

Support for Richard Nixon[edit]

Scaife gained notoriety for making an end-run around weak campaign finance laws to donate US$990,000 to the 1972 re-election campaign of U.S. President Richard M. Nixon. Scaife was not charged with a crime, but about $45,000 went to a fund linked to the Watergate scandal. Scaife later said he was repulsed by the scandal and refused to speak with Nixon after 1973. Following Duggan's suicide and then Watergate, Scaife shifted his political giving from politicians' campaigns to anti-communist research groups, legal defense funds, and publications.[17]

Pennsylvania Democratic Governor Milton Shapp accused Mellon of dirty tricks in 1974 because Scaife supported the Republican opponent, Raymond J. Broderick.[18][19]

Opposition to Bill Clinton[edit]

Scaife's publications were substantially involved in coverage against then-President Bill Clinton.

  • Scaife was the major backer of The American Spectator, whose Arkansas Project set out to find facts about Clinton and in which Paula Jones' accusations of sexual harassment against Clinton were first widely publicized.
  • On April 15, 1998, The New York Times revealed that Scaife had spent nearly $2 million on the project.[20]
  • In a 1999 series of articles on Scaife and foundations that support conservative causes, The Washington Post named a close Scaife associate, Richard Larry, and not Scaife himself as the man who drove the Arkansas Project,[17][21] while also acknowledging that Scaife was still the project's lead financier.[17][21]

The project not only accused Clinton of financial and sexual indiscretions (some later verified, others not), but also gave root to conspiracist notions that the Clintons collaborated with the CIA to run a drug smuggling operation out of the town of Mena, Arkansas and that Clinton had arranged for the murder of White House aide Vince Foster as part of a coverup of the Whitewater scandal. The possibility that money from the project had been given to former Clinton associate David Hale, a witness in the Whitewater investigation, led to the appointment of Michael J. Shaheen as a special investigator. Shaheen subpoenaed Scaife, who testified before a federal grand jury in the matter.

In the fall of 2007, however, Ruddy published a positive interview with former President Clinton on Newsmax.com, followed by a positive cover story in the magazine. The New York Times noted with reference to the event that politics had made "strange bedfellows".[22] Newsweek reported that Ruddy praised Clinton for his Foundation's global work, and explained that the interview, as well as a private lunch he and Scaife had had with Clinton, which Ruddy says was orchestrated by Ed Koch, were due to his shared view, with Scaife that Clinton was doing important work representing the U.S. globally while America was the target of criticism. He also said that he and Scaife had never suggested Clinton was involved in Foster's death, nor had they spread allegations about Bill Clinton's sex scandals, although their work may have encouraged others.[23]

Political donations[edit]

According to campaignmoney.com, from 1999 through 2006, Scaife, under the name "R. Scaife", made ten contributions of over $200 to political campaigns, for a total of $19,000. Under the name "R.M. Scaife", he made four donations totaling $22,000. Under the name Richard Scaife, he made 23 donations over this period which totaled $142,904. Besides donations to the Republican National Committee and various political campaigns such as Santorum 2000 and the Santorum Victory Committee for Rick Santorum, he has also supported political action committees such as the Pro-Growth Action Team, the Free Congress PAC (formerly: Committee For the Survival Of a Free Congress), and the Club For Growth Inc. PAC. Scaife also funded the Western Journalism Center, headed by Joseph Farah. He was named to the PoliticsPA list of "Pennsylvania's Top Political Activists".[24]

Management of the Scaife family foundations[edit]

When Scaife refocused his political giving away from individuals and toward anti-communist research groups, legal defense funds, and publications, the first among these was the Hoover Institution on War, Revolution, and Peace at Stanford University.

Through contacts made at Hoover and elsewhere, Scaife became a major, early supporter of The Heritage Foundation, which has since become one of Washington's most influential public policy research institutes. He currently serves as vice-chairman of the Heritage Foundation board of trustees.[25]

Later, he supported such varied conservative and libertarian organizations as:

By 1998, his foundations were listed among donors to over 100 such groups, to which he had disbursed some $340 million by 2002.[28]

Pepperdine University[edit]

Scaife also endowed a new school of public policy at Pepperdine University. Independent Counsel Kenneth Starr was named the first dean of this school, although Pepperdine denies any connection between Scaife and the selection of Starr. Starr accepted the post in 1996, but in the ensuing controversy, he gave up the appointment in 1998 before ever having started at Pepperdine. However, once the investigation was behind him, Starr was appointed to head Pepperdine's law school in 2004 and became president of Baylor University in 2010.[29]

Other philanthropic support[edit]

Scaife was identified with his contributions to conservative and libertarian causes. The Washington Post in 1999 dubbed him "funding father of the Right". Joseph Farah, founder of the website WND and a beneficiary of Scaife’s financial support in the late 1990s, noted that Sciafe's backing for conservative causes "dwindled dramatically in the 21st century. What was lacking in Dick Scaife’s life was a moral rudder, a connection with transcendent values, a spiritual relationship with the Creator of the universe. And that remains the problem with many so-called 'conservatives' these days."[16]

However, Sciafe also supported policy research groups which are not explicitly conservative, such as the Center for Strategic and International Studies (CSIS), the National Endowment for Democracy, and the Foreign Policy Research Institute at the University of Pennsylvania, among others.

Scaife was also a major donor to abortion rights advocates, including Planned Parenthood, giving "millions" to the organization, though most such giving stopped in the 1970s, according to The Washington Post.[21]

In the late 1990s, during the height of the Clinton scandals, Scaife nevertheless continued to provide more than $1 million to the Corporation for Public Broadcasting, the prime benefactor of the Public Broadcasting Service (PBS). His donations to restore and beautify the White House led to an invitation by Hillary Clinton for a black-tie celebration. She warmly received him and posed for a photograph on the same day her husband's sex scandal hit the press. Scaife told the New York Post that he appreciated Mrs. Clinton's invitation. "I'm honored", he said, "Lord knows, it's more than I got from [the first] George Bush".[30]

Scaife also supported non-political groups. He was a key benefactor of a number of Pittsburgh-based arts organizations. Pittsburgh Symphony Orchestra, the Sarah Scaife Galleries at the Carnegie Institute of Pittsburgh art museum, the Brandywine Conservancy, the Phipps Conservatory, and the National Gallery of Art in Washington, D.C., as well as Goodwill Industries of Pittsburgh. He and his foundations contributed to Sarah Scaife's favorite causes: population control (e.g. Planned Parenthood), environmental conservation, and hospitals; Jonas Salk developed his polio vaccine in a Sarah Scaife-funded laboratory. He also supported a variety of educational institutions, notably the University of Chicago, The Fletcher School of Law and Diplomacy at Tufts University, Carnegie Mellon University, Boston University, the University of Pittsburgh, the University of Rochester, Smith College, Bowling Green State University, and his prep school, Deerfield Academy.

Personal life[edit]

Scaife's first marriage was to Frances L. Gilmore (born December 2, 1934). The couple had two children, Jennie K. Scaife (born July 8, 1963), and David N. Scaife (born February 5, 1966). The couple subsequently divorced.

In June 1991, he married his longtime companion Margaret “Ritchie” Battle Scaife (born February 15, 1947), who had influenced the giving pattern of the Scaife foundations and made the couple active in the social and cultural life of patrician Pittsburgh.

The couple subsequently separated, and on December 27, 2005, the Pittsburgh Police responded to a call placed by Richard Scaife reporting trespassing at Scaife's residence in the prestigious Shadyside section of Pittsburgh. They arrived to find Ritchie Scaife, his estranged wife, pounding on doors and peeking in windows of the couple's mansion. Mrs. Scaife refused to leave the property, and was arrested and charged with defiant trespass.[31]

On April 8, 2006, the Tribune-Review published an article describing a fight between Scaife's estranged wife and three of his servants over a dog that Scaife told the New York Daily News his wife had given him. Both newspapers reported that Scaife's servants went to the hospital for scrapes and bruises after the fracas.[32][dead link][33] Afterwards, Scaife placed a sign on his lawn: "Wife and dog missing - reward for dog".[34]

On April 11, 2006 Scaife confided to a gossip columnist that he and Margaret "Ritchie" Battle Scaife planned to divorce and that their marriage began without a prenuptial agreement. The New York Daily News column estimated his vulnerable assets at half of $1.2 billion.[33]

In September 2007, the Post-Gazette and reporter Dennis Roddy found that the Scaife divorce papers, which had been under seal, were available to the public on the Web site of the Allegheny County Prothonotary's office. The Post-Gazette made the divorce papers available in full on its site.[9] The papers include a full list of all of the possessions Mrs. Scaife alleged Richard Scaife had taken and was keeping from her.[35]

He was named to the PoliticsPA list of "Sy Snyder's Power 50" list of influential individuals in Pennsylvania politics in 2002 and 2003.[36][37]

On May 18, 2014, he announced that his doctors had diagnosed him with an untreatable form of cancer as part of an introspective column in the Tribune-Review.[38]

Steve Kangas incident[edit]

On February 8, 1999 former military intelligence specialist and progressive writer Steve Kangas committed suicide less than 60 feet (18 m) from Scaife's office door inside One Oxford Centre in Pittsburgh. He had been an outspoken critic of Scaife and believed that Scaife-funded initiatives posed a danger to the nation. Scaife hired Rex Armistead and a reporter from the Tribune-Review to investigate whether or not Kangas had been out to kill Scaife.[39] Conspiracy theories concerning the death of Kangas continued to flourish in the period afterwards, with some commentators noting the irony when compared with Scaife's own material support of conspiracy theories regarding the suicide of Vince Foster.[40][41]

Death[edit]

Scaife died the morning of July 4, 2014 at his Squirrel Hill home in Pittsburgh, one day after his 82nd birthday.[42][43][44][45]

See also[edit]

Notes[edit]

  1. ^ Robert G. Kaiser (December 17, 1998). "Scaife Denies Ties to 'Conspiracy,' Starr". Special Report: Clinton Accused (The Washington Post). Retrieved August 30, 2010. 
  2. ^ Sarah Scaife Foundation
  3. ^ Herbert F. Vetter, ed. (2004-10-09). "Karen Rothmyer: Citizen Scaife". Speak Out Against the New Right. Harvard Square Library. ISBN 1-58736-357-7. 
  4. ^ a b c The Washington Post Staff (May 9, 1999). "Scaife's Foundations". The Washington Post. Retrieved August 30, 2010. 
  5. ^ Pro, Johnna A.; Pitz, Marylynne (January 27, 2005). "Obituary: Cordelia Scaife May / Reclusive Mellon heiress known for her generosity". Pittsburgh Post-Gazette. 
  6. ^ Philanthropist Cordelia Scaife May dies at 76 - Pittsburgh Tribune-Review
  7. ^ Another voice in town - Pittsburgh Tribune-Review
  8. ^ "The Media Business; Press Unions Support Sale". The New York Times. November 30, 1992. Retrieved May 22, 2010. 
  9. ^ a b Twedt, Steve (September 23, 2007). "Scaife demands documents from Post-Gazette". Pittsburgh Post-Gazette. 
  10. ^ Tribune-Review to reorganize papers - Pittsburgh Tribune-Review
  11. ^ Newsmax.com - Christopher Ruddy
  12. ^ "Vince Foster factory, The". Columbia Journalism Review. [dead link]
  13. ^ Trudy Lieberman (April 1996). "The Vince Foster factory". Columbia Journalism Review. [dead link]
  14. ^ Poe, Richard. Hillary's Secret War: The Clinton Conspiracy to Muzzle Internet Journalists. Thomas Nelson, 2004, ISBN 0-7852-6013-7
  15. ^ "Chris Ruddy: Conservatives' great online ally: He's a bigger Internet star than Rush Limbaugh" Commentary by Jon Friedman, MarketWatch, March 13, 2009. Retrieved 3-13-09.
  16. ^ a b Joseph Farah (July 7, 2014). "The Truth About Dick Sciafe". wnd.com. Retrieved July 11, 2014. 
  17. ^ a b c Kaiser, Robert G. (May 3, 1999). "Money, Family Name Shaped Scaife. Burdens of Wealth". The Washington Post. p. A1. Retrieved 2010-10-13. 
  18. ^ http://news.google.com/newspapers?id=JFoqAAAAIBAJ&sjid=R1UEAAAAIBAJ&pg=3427%2C3560744
  19. ^ http://news.google.com/newspapers?id=b8xRAAAAIBAJ&sjid=YG0DAAAAIBAJ&pg=4619%2C1184572
  20. ^ Neil A. Lewis.Almost $2 Million Spent in Magazine's Anti-Clinton Project, but on What?. New York Times. April 15, 1998
  21. ^ a b c Robert G. Kaiser; Ira Chinoy (May 2, 1999). "Scaife: Funding Father of the Right". The Washington Post. p. A1. Retrieved August 30, 2010. 
  22. ^ Healy, Patrick (2007-11-01). "Bill Clinton Gives Interview to Former Foe". The Caucus. The Politics and Government Blog of the Times (The New York Times). Retrieved 2010-09-14. 
  23. ^ Hosenball, Mark (November 19, 2007). "So Happy Together. Bill archenemy Richard Mellon Scaife now has 'admiration' for him. Huh?". Newsweek. 
  24. ^ "Pennsylvania's Top Political Activists". PoliticsPA. The Publius Group. 2002. Archived from the original on 2002-11-13. 
  25. ^ Heritage Foundation Board of Trustees, heritage.org
  26. ^ "Dissenter on Warming Expands His Campaign" by Leslie Kaufman, The New York Times, April 10, 2009. Retrieved 4/10/09.
  27. ^ A Vast Right-Wing Hypocrisy: Politics & Power: vanityfair.com
  28. ^ Media Transparency, http://www.mediatransparency.org/scaifeaggregate.php Aggregated Grants from the Scaife Foundations.
  29. ^ Bobby Ross, Jr. Kenneth Starr plans to join Baptist church, Christian Chronicle, 2010 April, p. 1 (accessed 2010 May 19).
  30. ^ Sammon, Bill (April 28, 1998). "There's a liberal side to `right-winger' Dick Scaife Endowment won Clinton's handshake". Washington Times (Washington, D.C.). p. A.1. 
  31. ^ "Tribune-Review publisher's wife charged with trespass". Pittsburgh Post-Gazette. December 27, 2005. Retrieved 2010-09-14. 
  32. ^ Police: Woman assaults 3 in fight over dog—Pittsburgh Tribune-Review[dead link]
  33. ^ a b Celebrity Scandals and Gossip - NY Daily News
  34. ^ Tony Allen-Mills (January 20, 2008). "Sex and tongs - it’s divorce billionaire-style". London: The Sunday Times. Retrieved 2008-01-20. 
  35. ^ Segal, David. "Low Road to Splitsville". The Washington Post. Retrieved May 22, 2010. 
  36. ^ "Sy Snyder's Power 50". PoliticsPA. The Publius Group. 2002. Archived from the original on 2002-04-21. 
  37. ^ "Power 50". PoliticsPA. The Publius Group. 2003. Archived from the original on 2004-04-17. 
  38. ^ Richard Mellon Scaife (May 18, 2014). "What matters most". Pittsburgh: Pittsburgh Tribune-Review. Retrieved 2014-05-18. 
  39. ^ Craig Jr., John (March 28, 1999). "Mission: Implausible". Pittsburgh Post-Gazette. Retrieved October 25, 2010. 
  40. ^ Leonard, Andrew (March 19, 1999). "A Vincent Foster for Usenet liberals?". Salon.com. Retrieved October 25, 2010. 
  41. ^ Associate Press (1999-03-15). "Scaife Probes Background of Suicide". The Washington Post. Retrieved 2010-10-25. 
  42. ^ http://triblive.com/news/adminpage/6338603-74/scaife-pittsburgh-dick#axzz36VdpxhzI
  43. ^ http://pittsburgh.cbslocal.com/video/10334151-billionaire-newspaper-publisher-richard-mellon-scaife-dies-at-82/
  44. ^ http://www.wtae.com/news/Tribune-Review-owner-Richard-Scaife-dies-at-82/26803252#!8CRjK
  45. ^ http://triblive.com/news/allegheny/6395404-74/scaife-dick-pittsburgh#axzz36VdpxhzI

References[edit]

External links[edit]