“Having failed to prove that private prisons are cheaper, the companies that run them have come to rely on political connections to help them win contracts, often contributing heavily to the campaigns of key politicians. Perhaps the king of them all in this regard is CCA. Company cofounder Tom Beasley is among the best-connected men in Tennessee. Before starting CCA, Beasley had served as chairman of Tennessee’s Republican Party, and he was very close to many of the state’s politicians. Among the early investors in CCA was Honey Alexander, wife of Lamar Alexander, who was then governor of Tennessee. In 1984, Mrs. Alexander invested $8,900 in CCA. Five years later, she walked away with $142,000.

“Beasley and the Alexanders were old friends. During his law school days at Vanderbilt University, Beasley had rented an apartment over the Alexanders’ garage. In 1985, the year after Mrs. Alexander’s initial investment, Beasley and Crants put together an audacious proposal to take over Tennessee’s entire prison system. Governor Alexander endorsed the proposal and pushed for its passage. The plan ultimately flopped, but not completely. Today, CCA manages seven correctional facilities in Tennessee (and is building an eighth) and the state accounts for nearly one out of every five dollars the company earns.”

–Joseph T. Hallinan, Going Up the River: Travels in a Prison Nation