Skip to main content icon/video/no-internet

THE FIRST ALLEGATION of Lyndon Baines Johnson (LBJ) exploiting his position in the government to benefit his personal business fortune came about while he was vice president, and such allegations persisted until he won the 1964 presidential election. Johnson appeared unable to separate his business work from his political career, and this greatly influenced people's perceptions of him as being a Texas “wheeler-dealer.”

His administration was tainted by a past littered with claims of corruption. Most notorious was his victory over Coke Stevenson for the Texas Democratic Senate nomination in 1948, when he won by a mere 87 votes, and was widely believed to have “stuffed” Texas ballot boxes. In addition to allegations of political corruption, he had accumulated a multi-million dollar fortune through his LBJ Corporation and other business ventures, that raised allegations that he used his political influences to gain unfair business contracts for himself and his friends.

Business dealings caused LBJ the most problems, beginning in 1962 with the Billie Sol Estes scandal. A later scandal involving Johnson's protégé, Bobby Baker, would lead to more public scrutiny. The Baker affair helped fuel the bitter rivalry that Johnson had with Robert Kennedy, who was the attorney general during the John F. Kennedy administration in which Johnson served as vice president.

Billie Sol Estes

The Billie Sol Estes scandal emerged in the summer of 1962 when Johnson was still Kennedy's vice president. Estes was a businessman from Pecos, Texas, who had established a lucrative business in agricultural products by mortgaging non-existent farm gear. He also created an illegal cotton-allotment business that eventually resulted in the dismissal of several members of the government's Department of Agriculture (DOA). With the help of government connections, Estes established his cotton business, and it became evident that such a deal would not have been possible without having some major influence within the government. This influence was immediately linked to Johnson. Estes was a major financial contributor to the Democratic Party and had been a major contributor to Johnson's many campaigns for the Senate and as vice president. The link to Johnson appeared strong.

Estes was arrested in March 1962 by the Federal Bureau of Investigation (FBI), charged with fraud and theft. In addition to those charges, the death of Henry Marshall, an official from DOA, cast further suspicion over Estes's affairs. Marshall was sent to Texas to investigate Estes's business deals. On June 3, 1961, Marshall was found dead, his body covered in bruises and shot five times. A bolt-action shotgun was found next to him and his death was ruled a suicide. Some observers considered this a bizarre ruling since a bolt-action shotgun would have to be pumped once before each shot was fired (obviously, one would think Marshall could not have pumped the shotgun after shooting himself with the first shot.)

Estes went to jail from 1965 until 1971, and again in 1979 until 1984, but never discussed his affairs and never disclosed any ties to Johnson. An FBI inquiry into the Estes case also revealed nothing that would incriminate Johnson. However, in 1984, upon his release from prison, Estes revealed allegations to a Robertson County Grand Jury in Texas that tied Johnson to not only the Marshall murder, but also seven other murders, including Kennedy's assassination.

...

  • Loading...
locked icon

Sign in to access this content

Get a 30 day FREE TRIAL

  • Watch videos from a variety of sources bringing classroom topics to life
  • Read modern, diverse business cases
  • Explore hundreds of books and reference titles

Sage Recommends

We found other relevant content for you on other Sage platforms.

Loading