Source: Garrett M. Graff. Watergate - A New History (2022)
The Watergate story came back to life on 22 July 1972 when Newsday reported that Liddy had been fired from CREEP for failing to cooperate with investigators. New York Times reporter Walter Rugaber had been suspicious of the Watergate break-in the moment he heard McCord was involved, certain that it had to be a Nixon operation. Rugaber felt that the key to the story was in Miami, and he set out to find a paper trail that would link the 4 Cuban burglars to Nixon’s orbit. Rugaber had the help of the Dade County (FL) state’s attorney general, which meant that he had subpoena power behind him. Barker’s phone records were obtained, and Rugaber called each number, with one answer “Committee to Re-Elect the President”.
On 25 July 1972, The NY Times published Rugaber’s first report that Barker’s Miami phone records showed that he had called Liddy’s extension at CREEP over a dozen times between March and June 1972, with one call occurring the day before the break-in. Rugaber’s article convinced the Washington Post to reassemble their Watergate team, very displeased that they were scooped by the NY Times. Woodward and Bernstein were back on the Watergate beat until further notice, and the first thing Bernstein wanted to do was to follow the money trail in Miami. Bernstein was all set up to work with the same Democratic state’s attorney in Dade County as had Rugaber. On his flight to Miami, Bernstein read another Rugaber scoop in the NY Times from Mexico City, with the headline “Cash in Capital Raid Traced to Mexico”.
On 25 July 1972, The NY Times published Rugaber’s first report that Barker’s Miami phone records showed that he had called Liddy’s extension at CREEP over a dozen times between March and June 1972, with one call occurring the day before the break-in. Rugaber’s article convinced the Washington Post to reassemble their Watergate team, very displeased that they were scooped by the NY Times. Woodward and Bernstein were back on the Watergate beat until further notice, and the first thing Bernstein wanted to do was to follow the money trail in Miami. Bernstein was all set up to work with the same Democratic state’s attorney in Dade County as had Rugaber. On his flight to Miami, Bernstein read another Rugaber scoop in the NY Times from Mexico City, with the headline “Cash in Capital Raid Traced to Mexico”.
Rugaber traced the sequentially-numbered $100 bills of the burglars to two bank withdrawals by Barker in Miami on 2 and 8 May 1972. The four bank drafts of $15k, $18k, $24k, and $32k ($89k total) from a Mexican corporate lawyer, and were drawn from Banco Internacional $89k. From the Miami airport, Bernstein called the Post to see if he should fly to Mexico City, but he was told to stay in Miami, which as it turned out was a very important decision concerning the Post's Watergate investigation.
Unlike Rugaber, Bernstein had to coax information from the Dade County state’s attorney, but he eventually learned of a fifth check from Ken Dahlberg for $25k that Barker deposited. Woodward, Bernstein, and the Post’s librarians eventually identified Dahlberg, who lived in Minneapolis and served as the head of the Nixon campaign in the Midwest in 1968. When Woodward contacted Dahlberg by phone, Dahlberg was flabbergasted when he was told his $25k check had wound up in Barker’s account in Miami. Dahlberg stated that he didn’t have the slightest idea how that could have occurred, telling Woodward that he gave the $25k check to either Hugh Sloan or Maurice Stans. It seemed to Woodward and Bernstein that the $25k check had been laundered through Barker’s bank account in Miami.
The Post article on the Dahlberg check ran the next day under the byline of Woodward and Bernstein. Up to that point, the two reporters had been competing with each other, but that changed when Woodward requested that the byline on the Dahlberg article feature both their names (Bernstein was still in Miami when the article ran). All of Woodward’s and Bernstein’s future Watergate articles would be co-bylined.
Unlike Rugaber, Bernstein had to coax information from the Dade County state’s attorney, but he eventually learned of a fifth check from Ken Dahlberg for $25k that Barker deposited. Woodward, Bernstein, and the Post’s librarians eventually identified Dahlberg, who lived in Minneapolis and served as the head of the Nixon campaign in the Midwest in 1968. When Woodward contacted Dahlberg by phone, Dahlberg was flabbergasted when he was told his $25k check had wound up in Barker’s account in Miami. Dahlberg stated that he didn’t have the slightest idea how that could have occurred, telling Woodward that he gave the $25k check to either Hugh Sloan or Maurice Stans. It seemed to Woodward and Bernstein that the $25k check had been laundered through Barker’s bank account in Miami.
The Post article on the Dahlberg check ran the next day under the byline of Woodward and Bernstein. Up to that point, the two reporters had been competing with each other, but that changed when Woodward requested that the byline on the Dahlberg article feature both their names (Bernstein was still in Miami when the article ran). All of Woodward’s and Bernstein’s future Watergate articles would be co-bylined.
A pattern emerged with the two reporters, in that Woodward would write the first draft of the story, and then Bernstein, the better writer, would write a more polished version. Their arguments over word-and-phrase choices were sometimes quite the spectacle in the Post newsroom, and their completed drafts seemed to always arrive right before the deadline. The Dahlberg angle was the first time the Post reported a new revelation to the Watergate break-in which moved the story forward, having before largely followed leads from other newspapers. Based on the Dahlberg article, the Government Accounting Office (GAO) started an audit on CREEP, which was the first-ever audit under the new campaign finance law that had taken effect on 7 April 1972.
During August 1972, Nixon and his inner circle created a series of lies, as well as suborning perjury combined with half-truths, in order to obfuscate the efforts of investigators to search and reach the darkest corners of CREEP. Also by then, Nixon was in favor of paying hush money to Hunt, Liddy, and the five burglars. During that same month, Magruder was scheduled to appear before a grand jury. On 15 August 1972, Dean prepped Magruder for that appearance, with the overall strategy to blame everything on Liddy. As it turned out, Dean’s practice questioning was far more rigorous and challenging than what Magruder faced from the grand jury, and it appeared that Magruder was now off the hook.
During late-August 1972, the Post reported that the GAO had identified a CREEP slush fund; ironically, on the same night that story ran, Nixon was formally nominated as the Republican candidate for President at the Republican National Convention in Miami. It was Nixon’s fifth appearance on a Presidential ticket, in that he was a Vice-Presidential candidate in 1952 and 1956, and then a Presidential candidate in 1960, 1968, and 1972. Nixon tied FDR for the most times appearing on a Presidential ticket from a major political party (FDR was a VP candidate in 1920, and then a Presidential candidate in 1932, 1936, 1940, and 1944).
During August 1972, Nixon and his inner circle created a series of lies, as well as suborning perjury combined with half-truths, in order to obfuscate the efforts of investigators to search and reach the darkest corners of CREEP. Also by then, Nixon was in favor of paying hush money to Hunt, Liddy, and the five burglars. During that same month, Magruder was scheduled to appear before a grand jury. On 15 August 1972, Dean prepped Magruder for that appearance, with the overall strategy to blame everything on Liddy. As it turned out, Dean’s practice questioning was far more rigorous and challenging than what Magruder faced from the grand jury, and it appeared that Magruder was now off the hook.
During late-August 1972, the Post reported that the GAO had identified a CREEP slush fund; ironically, on the same night that story ran, Nixon was formally nominated as the Republican candidate for President at the Republican National Convention in Miami. It was Nixon’s fifth appearance on a Presidential ticket, in that he was a Vice-Presidential candidate in 1952 and 1956, and then a Presidential candidate in 1960, 1968, and 1972. Nixon tied FDR for the most times appearing on a Presidential ticket from a major political party (FDR was a VP candidate in 1920, and then a Presidential candidate in 1932, 1936, 1940, and 1944).
Soon after Nixon garnered the Republican nomination, CREEP took some body blows, with Stans being questioned over the Barker money. The next day Rugaber reported more details about the CREEP money laundering operation, including where the $25k Dahlberg check originated. Ironically, that check had come from Democratic donors in the oil and agribusiness sectors, who wanted to hide their identities with their donations before the new campaign finance law took effect. Rugaber reported that Dahlberg had flown to Miami to collect the $25k check from one of those donors at a golf course, after which he brought the check back to DC.
At about the same time, the GAO released its preliminary audit of CREEP, stating that there were eleven possible and apparent violations of the new campaign finance law concerning $350k+, and that those possible violations had been forwarded to the Justice Department for possible prosecution. Woodward was told by a contact in the GAO that CREEP was “a rat’s nest behind the surface of efficiency of computerized financial reporting”. Despite the new revelations and outrage in the press, the public simply didn’t care about Watergate, so therefore there wasn’t any serious traction gained by the new round of articles.
On 29 August 1972, Nixon held a press conference at his estate in San Clemente, where he unexpectedly announced that Dean, under his direction, had conducted a complete investigation, and that Dean had determined that the White House was not involved in any way with the Watergate break-in. Dean was watching Nixon on television, and was beyond-shocked at what he heard, in that he had not lifted a finger to investigate anything concerning Watergate. Instead, Dean had been the primary architect covering up White House and CREEP involvement concerning Watergate for the last 70+ days. However, Dean wasn’t upset with Nixon’s lie, rather he was ecstatic that his name had been mentioned by the President on national television, which showed his rising influence and power within the administration. During the Summer of 1972, Dean had reached the true inner sanctum of White House officialdom, in that he was allowed to dine in the White House’s executive mess.
At about the same time, the GAO released its preliminary audit of CREEP, stating that there were eleven possible and apparent violations of the new campaign finance law concerning $350k+, and that those possible violations had been forwarded to the Justice Department for possible prosecution. Woodward was told by a contact in the GAO that CREEP was “a rat’s nest behind the surface of efficiency of computerized financial reporting”. Despite the new revelations and outrage in the press, the public simply didn’t care about Watergate, so therefore there wasn’t any serious traction gained by the new round of articles.
On 29 August 1972, Nixon held a press conference at his estate in San Clemente, where he unexpectedly announced that Dean, under his direction, had conducted a complete investigation, and that Dean had determined that the White House was not involved in any way with the Watergate break-in. Dean was watching Nixon on television, and was beyond-shocked at what he heard, in that he had not lifted a finger to investigate anything concerning Watergate. Instead, Dean had been the primary architect covering up White House and CREEP involvement concerning Watergate for the last 70+ days. However, Dean wasn’t upset with Nixon’s lie, rather he was ecstatic that his name had been mentioned by the President on national television, which showed his rising influence and power within the administration. During the Summer of 1972, Dean had reached the true inner sanctum of White House officialdom, in that he was allowed to dine in the White House’s executive mess.
As the Summer of 1972 ended, the FBI remained frustrated by the Justice Department’s lackadaisical approach to investigating Watergate, as well as the continuing leaks to Sandy Smith at Time magazine. Smith was the first to report on the Plumbers, and he referred to the break-in as the “Watergate Caper”. Gray was frustrated and confused, in that the leaks occurred four-to-eight weeks after the discovery of the information by FBI agents. The leaks were more about the “how” rather than the “what”, in that the leaker cared more about hurting Gray than Nixon.
Late that same summer, Woodward drove to Felt’s home in Fairfax (VA), 30 miles outside of DC. While Felt wasn’t too pleased to see Woodward, they ended up having a long conversation where Felt outlined his conditions for giving Woodward information. The two men worked out a system where Woodward would contact Felt if needed, but only for background information. Felt would only confirm what Woodward had learned and to provide context, but he would not volunteer any new information. This arrangement allowed Felt to remain anonymous, but to also allow him to scatter information to other reporters, such as Smith.
Late that same summer, Woodward drove to Felt’s home in Fairfax (VA), 30 miles outside of DC. While Felt wasn’t too pleased to see Woodward, they ended up having a long conversation where Felt outlined his conditions for giving Woodward information. The two men worked out a system where Woodward would contact Felt if needed, but only for background information. Felt would only confirm what Woodward had learned and to provide context, but he would not volunteer any new information. This arrangement allowed Felt to remain anonymous, but to also allow him to scatter information to other reporters, such as Smith.
During that “ground rules” meeting with Woodward, Felt did not mention that the FBI had learned about the White House pressure on the CIA to cover-up the break-in, as well as Baldwin’s revelations concerning CREEP’s involvement. Felt’s goal in leading information on a delayed piecemeal basis was originally designed to hurt Gray by showing he was not the man to lead the FBI. Felt did not consider what he was doing as patriotic, knowing full well that if he was exposed he would face legal action, as well as forfeiting his FBI career and pension. By leaking on his timetable and conditions, Felt gave himself plausible deniability, and could rage against the leaks along with the rest of his colleagues.
Baldwin’s role in the break-in became public knowledge at the end of the Summer of 1972. With help from DNC chair Lawrence O’Brien and his acolytes, Woodward and Bernstein had a front page story on Baldwin in the Post on 11 September 1972. Felt took advantage, claiming within the FBI that the information on Baldwin could only have come from 302s. Such was not the case at all, since the same person interviewed in a 302 could have easily talked to other investigators outside the FBI. Felt was now orchestrating a cover-up with the FBI concerning his leaks.
Baldwin’s role in the break-in became public knowledge at the end of the Summer of 1972. With help from DNC chair Lawrence O’Brien and his acolytes, Woodward and Bernstein had a front page story on Baldwin in the Post on 11 September 1972. Felt took advantage, claiming within the FBI that the information on Baldwin could only have come from 302s. Such was not the case at all, since the same person interviewed in a 302 could have easily talked to other investigators outside the FBI. Felt was now orchestrating a cover-up with the FBI concerning his leaks.