The Devil’s Chessboard: Allen Dulles, the CIA, and the Rise of America’s Secret Government

Gladding, McBean became a key generator of cash for Nixon, shaking down its own executives for campaign contributions and spreading the word to other corporate donors. The company president demanded that his fellow executives deliver the money in cash to his office. “We just gotta get rid of that pinko Voorhis,” he exhorted his team. The strong-arm appeal worked. Gladding, McBean alone raised at least $5,000 from its executive ranks, the equivalent of over $65,000 today. Together, Nixon’s corporate backers amassed a campaign “pot big enough to engulf the world,” as the Gladding, McBean financial officer later put it.

Gladding, McBean had a modest enough corporate profile to escape the scrutiny of election officials, but its board of directors boasted a variety of high-profile connections in the political and financial worlds. One director, Los Angeles corporate attorney Herman Phleger, had worked with Allen Dulles in postwar Germany and would later serve his brother as the State Department’s legal adviser. The Nixon-Voorhis contest took place on the opposite side of the country from the East Coast power centers—in a remote suburban California district where orange groves still dominated the landscape—but its outcome would help shape national politics for years to come.

As the congressional race heated up in summer 1946, it became clear to Nixon’s wealthy supporters that they had backed the right man to unseat Voorhis. The Republican challenger ran a ruthless campaign, cutting up the incumbent as an ineffectual left-wing dreamer, a Communist Party sympathizer, and a tool of Red-dominated labor unions—none of which was true. In fact, Voorhis had long battled against Communist Party encroachment in liberal organizations and had even spearheaded a 1940 bill requiring the registration of political groups that were affiliated with foreign powers—a law aimed as much at the Moscow-dominated CPUSA as it was against the pro-Hitler German-American Bund. But in Nixon’s skilled hands, Voorhis’s support for New Deal programs like school lunches became evidence of his obedience to the Communist Party line. In the final stretch of the campaign, Nixon released one last cloud of poison. Voters throughout the district began receiving anonymous phone calls, which turned out to emanate from Nixon campaign boiler rooms. “This is a friend of yours (#litres_trial_promo), but I can’t tell you who I am,” went a typical call. “Did you know that Jerry Voorhis is a Communist?”

The uniformly conservative Southern California press, including the mighty Los Angeles Times, echoed Nixon’s baseless charges against Voorhis and enthusiastically endorsed the Republican candidate. On Election Day, Nixon rolled to an impressive victory, winning 56 percent of the vote. Voorhis was so dismayed by the experience that he abandoned the political arena for the rest of his life.

An outraged Voorhis aide later confronted Nixon. “Of course I knew (#litres_trial_promo) Jerry Voorhis wasn’t a Communist,” Nixon told the man. “I had to win,” he went on, as if enlightening a political innocent. “That’s the thing you don’t understand. The important thing is to win. You’re just being naïve.”

As promised, Nixon was well compensated for his efforts. When he and his family embarked for Washington, they took with them $10,000 (about $130,000 in today’s dollars), a new Ford, and a generous life insurance policy. Nixon also arrived in the nation’s capital with a game plan for Republican success that would embolden the likes of Senator Joseph McCarthy and change American history. Nixon’s bare-knuckled race against the idealistic Voorhis was the political overture of a new era—a “scoundrel time” of patriotic bullying and rampant fear.

On August 11, 1948, a warm, sticky evening in New York, Rep. Dick Nixon walked into the lobby of the Roosevelt Hotel—the grand, midtown palace named after Teddy, not FDR—and took the elevator up to the fifteenth floor where Governor Tom Dewey, the Republican candidate for president, kept a suite. The freshman congressman was, once again, about to demonstrate his value to the Dulles brothers.

Nixon carried in his briefcase the congressional testimony of two men—Alger Hiss and Whittaker Chambers—whose epic duel would become one of the defining public spectacles of the Cold War. Chambers—a senior writer and editor at Time in Henry Luce’s right-leaning publishing empire—had ignited a firestorm by alleging that he had worked as a courier for a Soviet spy ring in Washington during the 1930s, a ring that included Alger Hiss. The resounding denial by Hiss, a former high-ranking official in Roosevelt’s State Department, was so persuasively delivered that the notorious House Un-American Activities Committee on which Nixon served seemed on the verge of terminating its investigation amid a chorus of catcalls from the press.

When the committee later reconvened in executive session after Hiss’s “virtuoso” performance, Nixon recalled, his fellow congressmen were “in a virtual state of shock.” Furious committee members turned on the staff, berating them for not thoroughly vetting Chambers before putting him on the stand. “We’ve been had (#litres_trial_promo)! We’re ruined,” moaned one Republican. But Nixon stood firm. If HUAC shut down its probe of alleged Communists in federal government, he argued, “far from rescuing the committee’s reputation, it would probably destroy it for good. It would be a public confession that we were incompetent and even reckless in our procedures.” His impassioned plea succeeded in steadying the committee’s nerves, and they agreed to carry on. But Nixon knew that before HUAC resumed its public hearings, he needed to get outside help if the committee was to prevail in the arena of popular opinion.

The Hiss case, Nixon later wrote in his soul-baring memoir Six Crises, was one of the defining crucibles in his career. Nixon was often wracked by self-doubt, and this was one of those contests that brought out his deepest anxieties. Nixon’s antagonist boasted all the credentials that had eluded him in life. Hiss had been one of the most brilliant law students in his class at Harvard. After graduating, he was picked to serve as a law clerk to octogenarian Supreme Court justice Oliver Wendell Holmes, a living legend of American jurisprudence. Hiss quickly became one of the rising stars in the Roosevelt administration, capping his Washington career by accompanying FDR to his final summit at Yalta and playing a key role in the formation of the United Nations.

When he appeared before the House Un-American Activities Committee, Hiss made a striking impression—thin, handsome, smartly dressed, and self-assured. Even Nixon had to admit that his performance was a striking contrast to his accuser’s “lackluster” appearance before the committee. Chambers was “short and pudgy (#litres_trial_promo),” observed Nixon. “His clothes were unpressed. His shirt collar was curled up over his jacket. He spoke in a rather bored monotone.” Hiss insisted that he had never met anyone named Whittaker Chambers—and he and the rumpled Chambers seemed to come from such different worlds that it was easy to believe him. But it was Chambers whom Nixon found convincing: he simply knew too many details about Hiss’s personal life. And there was something about this sad sack—a troubled but intelligent man who seemed to exude a strange mix of admiration, envy, and resentment toward Hiss—that strongly resonated with Nixon.

Nixon quickly emerged as Hiss’s most dangerous inquisitor, but Hiss held his ground under the young congressman’s relentless questioning, slyly taking aim at the most vulnerable part of his psyche. “I am a graduate of Harvard Law School (#litres_trial_promo),” Hiss coolly informed the committee. He let that sink in, and then fixed Nixon with a level gaze. “And I believe yours is Whittier?” It was an expertly aimed harpoon, certain to deeply wound the man who was so obviously afflicted by what sociologists would later term “the hidden injuries of class.”

“It absolutely ripped Nixon apart (#litres_trial_promo),” recalled Robert Stripling, HUAC’s chief investigator. “I realized from that moment on that he could not stand Hiss.”

Nixon knew that he was facing a formidable opponent. Hiss clearly had the Washington press on his side, as well as the White House. While the committee was interrogating him, President Truman told a press conference that the HUAC spy scare was nothing more than a “red herring” to divert Washington from more important business. Hiss’s testimony was full of references to leading political personalities with whom he was on a familiar basis. And they weren’t all Democrats. The biggest name he dropped—John Foster Dulles—produced a mighty echo in the cavernous caucus room of the Old House Office Building. Hiss reminded the committee that it was the Republican wise man who had offered him his current position as president of the prestigious Carnegie Endowment for International Peace, where Foster Dulles served as chairman of the board.

Nixon was well aware that Hiss, who accepted Foster Dulles’s offer and took over the Carnegie Endowment in January 1947, belonged to a Washington aristocracy that transcended party lines. By accusing Alger Hiss of being a traitor to his country, Nixon was not only threatening the career of a well-connected and widely respected public citizen, he was jeopardizing the reputations of Hiss’s prominent patrons—powerful men like the Dulles brothers, whom Nixon was counting on to advance his own career.

When he phoned Foster Dulles at his Wall Street office on the morning of August 11—the same office where he had been snubbed as a young law student—Nixon understood that it was another make-or-break moment for him. Foster agreed to meet that evening at Dewey’s hotel suite to discuss the Hiss-Chambers case. The Wall Street attorney appreciated the delicacy of the situation. As Dewey’s top foreign affairs adviser, Foster was poised to become the next secretary of state. The last thing he needed was a Washington tempest that tied him to a Soviet spy.

For Nixon, the anxiety hovering around the meeting was heightened by the fact that he harbored his own doubts about the case against Hiss. But men of action learn to conquer these disquieting voices inside, Nixon reminded himself. “One of the most trying experiences (#litres_trial_promo) an individual can go through is the period of doubt, of soul-searching, to determine whether to fight the battle or fly from it,” Nixon wrote in Six Crises. “It is in such a period that almost unbearable tensions build up, tensions that can be relieved only by taking action, one way or the other. And significantly, it is this period of crisis conduct that separates the leaders from the followers.” A leader acted decisively. The failures are “those who are so overcome by doubts that they either crack under the strain or flee.”

Published in 1962, Six Crises was Nixon’s strangely belated answer to Profiles in Courage—the 1957, Pulitzer Prize–winning book by the charismatic man who had just beat him for president. Nixon intended his book to be a leadership manual, but it only highlighted his neuroses. Many observers thought Nixon’s desperate self-puffery bordered on hysteria. Writing in his journal after the book’s publication, Arthur Schlesinger Jr. called it “an orgy in unconscious self-revelation (#litres_trial_promo).” President Kennedy told Schlesinger it showed that Nixon was a “sick” man (#litres_trial_promo).

But, as usual, Nixon’s opponents underestimated him. Nixon may have suffered from a tortured psyche, but it made him acutely sensitive to the nuances of power. He had a Machiavellian brilliance for reading the chessboard and calculating the next series of moves to his advantage.

When Nixon walked into Suite 1527 at the Roosevelt Hotel that summer night in 1948, he faced a formidable array of power. With Foster were his brother Allen, Christian Herter, and Wall Street banker C. Douglas Dillon, who would later serve President Eisenhower in the State Department and presidents Kennedy and Johnson as Treasury secretary. These men made up a significant section of the Republican Party’s ruling clique. If Nixon failed to convince them that he had a solid case against Hiss, HUAC would have to close its noisy show, and his political career would be wrecked just as it was gaining traction.

Foster felt that Nixon approached the group with the proper sense of humility, and no doubt trepidation. “It was clear he did not want to proceed (#litres_trial_promo) [with the Hiss investigation] until people like myself had agreed that he really had a case to justify going ahead,” Foster later remarked. Nixon knew that he was facing a skeptical audience. Herter, a mentor ever since their Marshall Plan junket, had already told Nixon he didn’t think he had a case. Herter had checked with his friends at the State Department, who assured him Hiss was not a Communist.

But Nixon was also aware that he came into the room with his own unique leverage. As the leading inquisitor in the Hiss case—an affair whose tendrils laced their way as far as John Foster Dulles himself—Nixon had the power to upend the Republican presidential campaign.

Nixon sat quietly in the suite while the Dulles brothers carefully read through the Hiss and Chambers transcripts. When they were done, Foster got to his feet and began pacing the room with his hands clasped behind him. The brothers realized that Nixon was right—and they had a problem. “There’s no question about it,” Foster frowned. “It’s almost impossible to believe, but Chambers knows Hiss.”

The Republican wise men took Nixon into their confidence, and once again the ambitious young politician came to a mutually convenient arrangement with the Dulles circle. It was another significant step for Nixon through the portals of power. With the Republican brain trust’s full support, Nixon would continue his aggressive pursuit of Hiss while keeping the spotlight carefully away from Foster and other GOP luminaries who were tied to the accused man. Meanwhile, Foster moved quickly to distance himself from Hiss, pressuring him behind the scenes to resign his Carnegie Endowment post, while Allen fed incriminating intelligence to Nixon to bolster his case. Some of this confidential information about Hiss likely came from the Venona project, the Army intelligence program that had been set up in 1943 to decrypt messages sent by Soviet spy agencies. The Venona project was so top secret that it was kept hidden from President Truman, but the deeply wired Dulles might have enjoyed access to it.

Nixon was impressed by the Dulles brothers’ bold decision to politically exploit the Hiss affair rather than run from it. The HUAC investigation could have been (#litres_trial_promo) “acutely embarrassing (#litres_trial_promo)” to Foster, Nixon later noted. The Dulleses “could have suggested that I delay the proceedings until after the election.” But instead, with Nixon’s help, they turned the Hiss case to their advantage, with Dewey fulminating against the laxity of the Roosevelt and Truman administrations that had allowed Communists to penetrate the government. The meeting at the Roosevelt Hotel proved a turning point. For the next decade, Republicans would use Cold War hysteria not just to indict Communist Party members and sympathizers as traitors but to brand the entire New Deal legacy as un-American. Even former high-ranking New Dealers with impeccable credentials like Alger Hiss would be fair game in Washington’s new inquisitorial climate.

The age of paranoia brought out Nixon’s brilliance as a political performer. He had a deep, demagogic instinct for playing on the public’s darkest fears. Robert Stripling, his right-hand man on HUAC, came to believe that there was no genuine ideological passion in Nixon’s pursuit of the “traitor” Hiss, just the same cold-blooded calculation he had brought to his campaign against Jerry Voorhis. “He was no more concerned about whether Hiss (#litres_trial_promo) was [a Communist] than a billy goat,” the HUAC investigator later remarked.

This was not an entirely fair assessment of Nixon. The young politician clearly had developed deeply felt convictions about the brutality of the Communist system. When his Marshall Plan tour took him to Greece, Nixon was horrified to meet a young woman whose left breast had been hacked off by Communist guerrillas. He returned from the trip with a firm belief in the implacability of Communist regimes, and the conviction that they only understood force—a view that he would modify when he became president and engaged both the Soviet Union and China in strenuous diplomacy.

But at home, Nixon’s anti-Communism reeked of political cynicism, earning him the nickname “Tricky Dick.” He smeared his opponents with reckless abandon, labeling them as Reds or “dupes” or, in the case of his 1950 senatorial opponent, Helen Gahagan Douglas, a woman who was “pink down to her underwear.” Nixon never proved that Hiss was a card-carrying Communist or a Soviet agent, but, with typical hyperbole, he treated him like he was a mortal threat to the American way of life.

The highlight of Nixon’s obsessive, Javert-like pursuit of Hiss came when Chambers dramatically led HUAC investigators to a pumpkin patch on his Maryland farm, where he produced a hollowed-out pumpkin containing sixty-five pages of retyped State Department documents, four pages of copied government documents in Hiss’s handwriting, and five rolls of classified film—all of which, Chambers claimed, had been slipped to him by Hiss in 1938. Nixon staged a dramatic return to Washington from a Caribbean vacation cruise, with the help of a Coast Guard rescue plane, in order to publicize the so-called pumpkin papers. The documents, which seemed to prove that Hiss did have an espionage connection to Chambers, sealed the diplomat’s fate. He was indicted in December 1948 by a federal grand jury for lying to Congress.

Hiss continued to vigorously deny his guilt, insisting that the pumpkin papers had been forged by Chambers. Neither he nor his wife, Priscilla, could have retyped the State Department documents, said Hiss, because they had given away the Woodstock model typewriter that they allegedly used to copy the classified memos before 1938. Four jury members at his first deadlocked trial believed Hiss, agreeing that someone other than Hiss or his wife had retyped the State Department documents. Hiss’s suspicion that he was framed was given further credence years later by John Dean, the former White House attorney who became a key witness in the Watergate scandal that ended the Nixon presidency. Writing in his memoir Blind Ambition, Dean alleged that Nixon told fellow White House aide Charles Colson, “We built [the typewriter] (#litres_trial_promo) in the Hiss case,” implying that with the help of FBI technicians, Nixon had used a replica of the Woodstock machine to trap his prey.

Hiss’s second trial did not go in his favor. Among the witnesses who testified against him was John Foster Dulles, who disputed Hiss’s recollection of the events leading to his resignation from the Carnegie Endowment. It was the final nail in Hiss’s coffin by his former patron. In January 1950, Hiss was convicted of perjury and sentenced to federal prison, where he would serve three and a half years. Meanwhile, Chambers, a man who had launched his writing career by working for the Communist Party press, continued to enjoy his new life as a polemicist for the conservative media, first in Henry Luce’s plush Time-Life tower and then in the more modest Manhattan offices of William F. Buckley Jr.’s National Review.

For Nixon, the Washington spy spectacle demonstrated not only the moral turpitude of Alger Hiss but the intellectual bankruptcy of the liberal elite. His successful pursuit of Hiss brought him national fame, Nixon later observed, but it also attracted the “unparalleled venom (#litres_trial_promo) and irrational fury” of the liberal intelligentsia, which saw Hiss as a New Deal icon. He was convinced that he would never be forgiven by “substantial segments of the press and intellectual community” for exposing how the New Deal had been compromised by the Communist underground. Nixon brooded that it was this “hatred and hostility” that might have cost him the 1960 presidential election.

Chambers, too, saw his decision to incriminate Hiss as part of a broader assault on New Deal–style government and its “drift toward socialism.” In his 1952 memoir Witness, Chambers conflated the Roosevelt presidency with the evils of Communist rule. The New Deal, he wrote, “was not a revolution by violence (#litres_trial_promo). It was a revolution by bookkeeping and lawmaking.” Both types of revolution, he argued, led to a triumph of the state over the individual.

The Cold War furies that Nixon and the Dulles brothers helped to unleash scoured all nuance and charity from American politics. There were indeed a few committed Communist agents embedded here and there in Roosevelt’s bureaucracy, such as Nathan Silvermaster, a Russian-born economist with the War Production Board during World War II who was dedicated to the dream of a Soviet America. But by far the more common “traitors” were men like Hiss: well-educated, progressive idealists. They were the type who had come of age after the stock market crash of 1929 and had grown sick of a hands-off government that allowed encampments of hungry and homeless people to spring up all over the country without taking action.

When Roosevelt was elected in 1932, and Hiss received a telegram from Felix Frankfurter, his former Harvard law professor and an adviser to FDR, urging him to come work for the new administration “on the basis of national emergency,” Hiss knew that he had to sign up. For young New Dealers, “it was a call to arms (#litres_trial_promo)