◆ SpookStack

* My ” , ~34- Several months after the Agnew administration took office, the State Roads’ Commission began to generate new projects and to award new contracts, and 4 = Matz's company -began to.receive substantial amounts of State work. On several occasions during the spring and summer of 1967, the close associate ‘calle Matz and attempted to perpetuate the arrangement under which payments had been | made for ronsnpers in the past. Matz was reluctant, however, to continue this | - arrangement, ope several reasons. First, he knew that if he paid Governor “ Agnew through , middleman, the credit to which he was entitled by virtue of these payments jwould be somewhat diluted because the middleman himself would receive a substantial portion of the credit. Second, he suspected that the close associate had, without Mr. Agnew's knowledge, retained for himself some of the money bnat had been paid to him by Matz between 1963 and 1966. Third, he knew that Mr. Agnew believed that the close associate had given him poor advice on certain matters that had resulted in bad publicity and émbarrassment - 0° to Mr. Agnew. 3 Soetine early in Governor Agnew! ‘ss administration, Matz met with Governor Agnew alone in his offices. During ‘this conversation Matz told Mr. Ag- new that he believed that the close associate lacked the ciscretion necessary safely to represent Mr. Agnew's interests and that sooner or later he would lead the twolof them into trouble. Therefore, rather than continuing to pay through the close associate, Matz suggested that his company establish a savings account into which he would deposit the money that he owed on State contracts. After Mr. Agnew left office, Matz could pay him the money accumulated in this account, perhaps under the guised legal fees. Governor Agnew liked the idea, and at a later meeting he referred to the idea again with approval. These factors and, in particular, these conversations with Mr. Agnew, led Matz to conclude that he could dispense with the close associate and pay Mr. Agnew directly. He therefore told the close associate that he would take care of his obligations directly. Subsequently, however, he abandoned the savings ;account idea because he feared that it would involve too many records i of payments and thereby lead to the disclosures of the scheme. Tastead, he decided to make his cash payments to-Mr. Agnew directly.