Baxter International

Official company history: It was founded in 1931 to manufacture intravenous solutions. It distributed products manufactured by another company owned by Dr. Don Baxter until opening a facility in Glenview, Illinois. In 1935, Don Baxter's interest was purchased by Dr. Ralph Falk. "When World War II broke out, many of Baxter's blood-collection devices and 25 solutions were the only ones that met the specifications of the U.S. Armed Forces" [which could have been due to the preferences of those who wrote the specs! -cast]. Patent lawyer William B. Graham joined the company in 1945 as vice president and general manager, and became CEO in 1953. They developed dialysis machines in the 1950s and other equipment. "Baxter established one of the most outstanding growth records in American industry during Mr. Graham's tenure as CEO." It was among the 500 largest American corporations in 1971.

Key Events in Baxter's History / Baxter International Inc.

Dr. Donald E. Baxter had been a medical missionary in China in 1924, affiliation not given. (Don Baxter, Inc., Records of, 1930-1962. History. Northwestern University Archives.) Baxter and Harold H. Loucks, a surgeon with the Rockefeller Foundation's Peking Union Medical College, were correspondents of Franklin C. McLean, who had headed the Peking Union Medical College before becoming chairman of the Department of Medicine at the University of Chicago, and was on the Advisory Committee of the 1928 Lasker Foundation for Medical Research at the University of Chicago..

Don Baxter Inc., Records / Northwestern University (pdf, 2pp)

Karl D. Bays, Chairman of the Board of Baxter Travenol Laboratories Inc. in 1986, was a Trustee of the American Health Foundation in 1981.

Not in the official history: "Chairman Charles E. Schumer of the House Judiciary Committee's subcommittee on Crime and Criminal Justice directed the Subcommittee majority staff to prepare this report. Thus report has not been reviewed or approved by other Members of the Subcommittee....

"1991--Syria Requests an Affiliate of Baxter International, Inc. to Build a High-Technology Filtration Plant Capable of Producing a Highly-Refined Grade of Heroin. Last year, a Baxter affiliate entered into a contract with the Syrian Defense Ministry to build a high technology filtration plant, ostensibly to manufacture intravenous (IV) fluids for medical use in Syria.

"In connection with its investigation, Subcommittee staff learned about the filtration technology at issue and the design of the proposed plant. Although the design of the Baxter plant was consistent with a sterile facility to manufacture IV fluids, with a few relatively minor modifications, the technology in the plant was capable of producing both an extremely high-grade form of heroin and biological weapons.

"'Baxter's activities with respect to its contract for the Syrian plant and its attempts to remove itself from the Arab boycott list for doing business with Israel are reportedly under investigation by Justice Department officials and may be the subject of a pending grand jury in the U.S. District Court for the Northern District of Illinois.

"Two factors weigh heavily against the credibility of Syrian claims that the plant was to be used to produce IV fluids for domestic medical use. First, IV fluids are widely available and affordable on the world market. Second, the filtration technology set forth in the plant design was four times more thorough than necessary for legitimate medical purposes.

"Other observers have noted that it was puzzling that an IV fluids plant designed for domestic medical use would have Syrian sponsors who were associated with the Syrian military, including Defense Minister Tlass, rather than the Ministry of Health. After a flurry of press attention, in June 1991 Baxter cancelled plans to build the Syrian plant.

Course materials / University of Texas

The Caremark Fraud Case

"The FBI investigation began long before Caremark was spun off from its one-time parent, Baxter International Inc. in nearby Deerfield, Ill. Baxter itself was the target of a federal investigation that resulted in a 1993 guilty plea to a felony charge of abetting the Arab economic boycott of Israel. The Caremark investigation focused on whether the company disguised kickbacks to doctors as research grants or payments for legitimate work. The payments violated federal law, officials said, because Caremark was inducing doctors to refer Medicaid and Medicare patients to the company." The company agreed to pay $161 million in criminal and civil fines." (Healthy penalties in Caremark fraud case. Jan Crawford Greenburg, Washington Bureau. The Chicago Tribune June 17, 1995.)

Caremark / Aegis

Baxter International was a "$100,000+ Excalibur Contributor" to the American Cancer Society in 2000.

ACS 2000 Form 990 - Annual Report / ACS (pdf, 123pp)

The Donald E. and Delia B. Baxter Foundation

The Baxter Foundation has supported Stanford University with more than $8.5 million since the School of Medicine was moved from San Francisco in the 1960s. Donald Haake, a grandson of Donald Baxter, is President of the Foundation, and directors include Richard and Martha Haake and Jane Haake Russell. (Stanford University, Dean's Newsletter, Feb. 4, 2002; Baxter Lab opens its doors onto medical research. By Amy Adams. Stanford Report, May 22, 2002.)

Dean's Newsletter, Feb. 4, 2002 / Stanford University (doc)
Baxter Lab / Stanford University

William B. Graham

Official bio, 1994 DEF 14A: "William B. Graham--Age 82 Director since 1945 Term expires 1995. Mr. Graham has been senior chairman of the Board of Directors since 1985. Mr. Graham became president of the Company in 1953 and chief executive officer in 1960 and continued in these positions until 1971. From 1971 to 1980 he was chairman of the board and chief executive officer, and thereafter he served as chairman until he became senior chairman."

Graham was a fundraiser for Secretary of Defense Donald Rumsfeld in his first run for Congress in 1962. Edgar Jannotta of William Blair & Co. was his campaign manager. Other fundraisers included Dan Searle of Searle Pharmaceuticals (of which Rumsfeld later became a director), and Robert Calvin of Motorola. His campaign operatives included Jeb Stuart Magruder, who was later sent to prison for Watergate-related perjury. (The Don, by Carol Felsenthal. Chicago Magazine June 2001.)

Felsenthal / Chicago Magazine 2001

"William B. and Catherine V. Graham give $10 million to the University of Chicago Center for Continuing Studies renamed in their honor" (University of Chicago News Office March 18, 1997). "Graham graduated from the University of Chicago with an S.B. in chemistry in 1932... He spent two years at the University as a graduate student in chemistry, studying under Nobel Laureate Harold Urey, who discovered heavy hydrogen and carried out a landmark experiment that contributed significantly to the scientific understanding of the evolution of life. Graham then entered the University of Chicago Law School, earning a J.D. in 1936. At the law school, he studied with Edward Levi, U.S. Attorney General from 1975 through 1977 and President of the University of Chicago from 1968 to 1975.... He is chairman of the Lyric Opera of Chicago and a director of the Chicago Horticultural Society, Evanston Hospital, Big Shoulders, and the Wendy Will Cass Foundation. Graham is a member of the Breton Woods Committee and a trustee of the Orchestral Association. He has served as a director of the First Chicago Corporation, The First National Bank of Chicago, Deere & Company, Bell & Howell and Borg Warner. He is a past president of the Community Fund of Chicago and the Illinois Manufacturers Association. Graham has been prominent in drug-industry activities, having served as a president of the American Pharmaceutical Manufacturers Association and chairman of the Pharmaceutical Manufacturers Association (PMA). He served as a director of the PMA for more than a quarter of a century....

"Catherine V. Graham is on the board of Alliance Francaise, the Women's Board of Lyric Opera and the Women's Boards of the Field Museum and the University of Chicago, and is an active supporter of the University of Chicago's Center on Modern France. She is a native of Argentina and the daughter of the former Vice President of International Harvester in South America. An international traveler, she has lived in Fance and Brazil, and she speaks fluent French, Spanish, Portuguese and English."

News Office / University of Chicago 1997
Graham Biography / Baxter International

Directors of Baxter International, 1994

Vernon R. Loucks, Jr.

Loucks is a member of Skull and Bones, class of 1957.

Skull and Bones roster / Biblebelievers

Vernon R. Loucks Jr, director since 1975 and CEO since 1980, also a director of Anheuser-Busch Companies Inc., The Dun & Bradstreet Corp., Emerson Electric Co. and Quaker Oats (from 1981 until its merger with PepsiCo in 2001). Fellow Baxter director Silas S. Cathcart was a director of Quaker Oats from 1983-87 and again from 1989-1997.

Loucks's bio for the 1998 Sabin Lifetime Achievement Award notes that he joined Baxter in 1966 as Asssitant to the President and Chief Executive Officer. He served as special advisor to the Director of the National Institutes of Health from 1983 to 1986, and "In 1989 Mr. Loucks received the William McCormick Blair award from Yale University." Blair was a member of Skull & Bones, Class of 1907, who founded the Chicago investment banking firm, William Blair & Company.

Lifetime Achievement Awards / Sabin

John W. Colloton

Other directors in 1994 include John W. Colloton, 1989 to the present, director of the University of Iowa Hospitals and Clinics; vice president of the University of Iowa for Statewide Health Services; director of Iowa State Bank & Trust, Premier Anesthesia, Iowa-Illinois Gas and Electric Co., and Iowa-South Dakota Blue Cross and Blue Shield.

Susan Crown

Susan Crown, director since 1993 to the present, vice president of Henry Crown and Company; Caribbean International News Corp; and trustee of Northern Funds Mutual Fund.

Georges C. St. Laurent

Georges C. St. Laurent, director from 1992 to 1997, CEO of Western Bank, later a director of Perkin Elmer Corp.

Silas S. Cathcart

Silas S. Cathcart, director from 1990-1996; also a director of General Electric, Illinois Tool Works, and Quaker Oats, and trustee of Northern Funds Mutual Funds. He was a director of American Hospital Supply, which Baxter acquired then got rid of, and is a former chairman of the board, CEO, and/or president of Kidder, Peabody. He is also a member of the original board of RoundTable Healthcare Partners, with Edgar Jannotta of Wm Blair & Co., Lester Crown of Henry Crown & Co., Charles Knight of Emerson Electric, and Donald S. Perkins.

David C.K. Chin

David CK Chin, director from 1992 to 1995, president and COO of Novalis Corp.; an instructor in medicine at Harvard Medical School; and former president and medical director of the Harvard Community Health Plan, an HMO.

James D. Ebert

James D. Ebert, director from 1989 to 1995, professor of biology at The Johns Hopkins University, and former president of the Carnegie Institution of Washington.

Mary Johnston Evans

Mary Johnston Evans, director from 1986 until 2000; also director of Household International, Sun company, Delta Air Lines, and Scudder New Europe Fund.

Frank R. Frame

Frank R. Frame, director from 1992 until 2000. "Between 1976 and 1990, Mr. Frame held various senior management positions in The Hongkong and Shanghai Banking Corporation Limited, a financial institution from which he retired in 1990, including group legal advisor, executive director and deputy chairman." Also chairman of Wallem Ltd. and deputy chairman of Time Products.

David W. Grainger

David W. Grainger, director from 1990 to 1996, chairman president and CEO of WW Grainger Inc., which he joined in 1952.

Martha R. Ingram

Martha R. Ingram, director from 1987 until 2000, also director of Ingram Industries Inc. and First American Corp.

Fred L. Turner

Fred L. Turner, director from 1982 to the present; senior chairman of the board of directors of McDonald's Corporation, and its former CEO. Also a director of Aon Corp. and WW Grainger.

Baxter International 1994 DEF 14A / Securities and Exchange Commission

Lester B. Knight

Lester B. Knight, vice president of Baxter since 1990, served as a director beginning in 1995.

Arnold J. Levine

Arnold J. Levine, Professor of Biology and chairman of the Department of Molecular Biology at Princeton University and the State University of New York, was a director from 1994 to 2000.

Reed V. Tuckson

Reed V. Tuckson, president of the Charles R. Drew University of Medicine and Science, "a private academic health sciences university," was a director from 1996. He was also a senior vice president of the March of Dimes Birth Defects Foundation and former Washington, DC, Commissioner of Public Health. He has been an executive vice president since 2000, and Chief of Medical Affairs at UnitedHealth Group since 2006. (Biography for Reed V. Tuckson, MD, FACP. University of Michigan School of Public Health, accessed 12/12/12; Executives. UnitedHealth Group, accessed 12/12/12.) He represented the AMA at the "Building Health Promotion into the National Agenda" Conference in 2001. (link died http://www.healthpromotionconference.org/2001conf/program/emerging_issues.htm.) In 2011 he was appointed a director of Cell Therapeutics. (Reed V. Tuckson, M.D., Executive Vice President and Chief of Medical Affairs at UnitedHealth Group, Joins Board of Directors of Cell Therapeutics, Inc. (CTI). PR Newswire, Sep. 26, 2011.) He is a director emeritus of Research!America. (Nursing Leadership from Bedside to Boardroom: Opinion Leaders’ Perceptions. Research!America, January 20th, 2010.)

Tuckson bio / University of Michigan (pdf, 1 p)

Other current directors

Baxter International 2002 DEF 14A / Securities and Exchange Commission

Harry M. Jansen Kraemer

Harry M. Jansen Kraemer, senior vice president and CFO, later president and CEO of Baxter, has been a director since 1995.

Joseph B. Martin

Joseph B. Martin, MD, PhD, elected 2002; Dean of the Harvard Faculty of Medicine since 1997; chancellor of the University of California - San Francisco from 1993 to 1997 and Dean of the UCSF School of Medicine from 1989 to 1993.

Stallkamp

Mr. Stallkamp, elected in 2000, vice chairman and CEO of MSX International; former vice president and president of Chrysler and DaimlerChrysler; and a director of Kmart and Metaldyne Corp.

Walter E. Boomer

Retired USMC Gen. Walter E. Boomer, elected 1997, president and CEO of Rogers Corp., former executive vice president of McDermott International and president of the Babcock and Wilcox Power Generation Group; also a director of Cytyc Corp. and Taylor Energy Co.

Brian D. Finn

Brian D. Finn, director since 2000; partner in Clayton, Dubilier & Rice; former managing director and co-head of mergers and acquisitions at Credit Suisse First Boston.

Gail D. Fosler

Gail D. Fosler, elected 2001; senior vice president and chief economist of The Conference Board, and a director of Unisys Corp., HB Fuller Co., DBS Holdings (Singapore) and trustee of the John Hancock Mutual Funds.

Monroe E. Trout

Monroe E. Trout, director since 1995; former chairman of the board, president and CEO of American Healthcare Systems; chairman of Cytyc Corp. and director of Science Applications International Corp. and West Pharmaceutical Services.

Pei-yuan Chia

The Raul Salinas Money Laundering Affair

Baxter official Bio: "Pei-yuan Chia, age 63, has served as a director of Baxter since 1996. Mr. Chia was vice-chairman of Citicorp and Citibank, N.A., its principal subsidiary, from 1994 to 1996 when he retired. From 1993 to 1996, he served as a director of Citicorp and Citibank, N.A., and assumed responsibility for their global consumer business in 1992. Between 1974 and 1992, Mr. Chia held various senior management positions in Citicorp and Citibank, N.A., and was Citibank, N.A.'s senior customer contact for corporate banking activities in Asia. Mr. Chia also serves as a director of American International Group, Inc., and Bank of China (Hong Kong), Limited."

From "The Gang That Ate the Philippines. A profile of Maurice R. Greenberg and his Ameircan International Group." Executive Intelligence Report, March 1999:

"Pei-Yuan Cia, who took a spectacular fall from his top post at Citibank, has recently been hired as an AIG consultant and was made a corporate director. Pei's job has to do with supervising AIG's new Philippine credit card business. The Philippine's will benefit, no doubt, from Pei's unique experience in consumer banking!

"The recent saga of Mr. Pei seems to have begun when Raul Salinas of Mexico arranged with South American narcotics cartels, that Mexico would be made a safe trans-shipment channel for their dope after Raul's brother Carlos became Mexico's President. Once this deal kicked in, and the payment money was flowing, Raul Salinas was accepted as a customer in a Mexico branch of Citibank.

"With his brother in the Mexican President's chair, Raul Salinas conducted nearly $100 million in transactions; and he opened accounts under false names through the New York Citibank headquarters where they knew his real identity. With Citibank's help he deposited large sums in a Citibank-owned Swiss bank, Confidas, which had on its board Citibank executive vice president Hubertus M. Rukavina. Rukavina had responsibility for Worldwide Private Banking during some of the Swiss Salinas transactions. Rukavina reported to Pei-Yuan Chia, Citibank's vice chairman and head of Citibank's Global Consumer Banking. Thus Pei was responsible for all personal banking, including Salinas's.

"Paulina Castanon, Salinas's wife, was arrested Nov. 15, 1995 in Geneva, as she tried to withdraw $84 million from her husband's false-name account, which Citibank officers had helped to establish at Pictet & Cie.

"Less than two months later, on Jan. 12, 1996, the banking world was shocked when Pei -- who had reportedly brought Citibank tremendous revenues -- announced his retirement. Four days later, Pei's subordinate Rukavina was transferred out of his job, to head the Investment Products Group at Citibank." (Link died: http://www.geocities.com/sulongpilipino/gang1999.html)

PBS Frontline: A series of reports from Money Laundering Alert, January 1996 through January 1997. From the April 1996 issue of Money Laundering Alert: "Citibanker for Salinas had been Star U.S. witness."

"Rukavina was Citibank's Swiss-based Executive Vice President for Worldwide Private Banking, with responsibilities over Elliott's Mexican operations, during the time some of the Salinas transactions occurred. On January 16, 1996, 61 days after Castanon's widely-publicized arrest in Geneva, Rukavina was transferred to head Citibank's Investment Products Group.

"While head of Worldwide Private Banking, Rukavina, an Argentinian, reported to Pei-Yuan Chia, head of Citibank's Global Consumer Bank. Pei reported directly to Citibank's Chairman, John S. Reed.

"On January 12, 1996, 57 days after the Castanon arrest, 56 year old Pei announced he would retire 'during the year.' On January 13, the New York Times reported: 'The departure of the highly regarded executive was not expected and prompted concern by some banking industry analysts.' A CS First Boston analyst was quoted: 'I'm floored. Pei is the earnings power of Citibank....'"

John Reed announced Pei's retirement and the promotion of Shaukat Aziz. (Citicorp News Release, Jan. 12, 1996.) Aziz was called to serve as the Pakistani Minister of Finance the morning after the military coup in October 1999 to serve as Pakistani Minister of Finance.

Citicorp News Release, Jan. 12, 1996 / tobacco document

American International Group

Pei has been a director of AIG since 1996. Fellow directors include Frank J. Hoenemeyer, emeritus trustee of the Robert Wood Johnson Foundation and Carla A. Hills. RWJF Trustee Edward E. Matthews was a director of AIG until 2002.

AIG 2003 DEF 14A / Securities and Exchange Commission

The Case Corporation / CNH Global

Pei was elected to the board of directors of the Case Corporation in 1998. (Shareholders Elect Ronald E. Goldsberry as a New Director of Case Corporation. Case Corp. press release, May 13, 1998.)

Press Release / Case Corp. 1998

Pei was also named a director of CNH Global, a global corporation formed from the merger of New Holland N.V. and the Case Corporation on November 12, 1999. Cyrus McCormick et al.'s International Harvester was merged into the Case Corp. of Wisconsin some years ago. "CNH is the largest manufacturer of agricultural equipment in the world, the third largest manufacturer of construction equipment and has one of the world's largest equipment finance companies.

CNH Global 1999 Form 20-F / Corporate-IR (pdf, 257 pp)

CNH President named, company begins stock trading. The Independent Nov. 23, 1999.

CNH / The Independent 1999

New York University Hospitals Center

Pei-yuan Chia is a Trustee of New York University Hospitals Center. Other trustees are Alice Tisch, Laurence A. Tisch, and Thomas J. Tisch. Thomas S. Murphy, former Chairman and CEO of Capital Cities/ABC, is a Life Trustee.

Board of Trustees / NYU Hospitals Center

The Asia Society

Pei is a trustee of the Asia Society, an arts and culture nonprofit founded by John D. Rockefeller 3rd in 1956.

Officers / The Asia Society

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cast 12-12-12