New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-09-19
THE LOGICAL REMEDY.

Discussion of the campaign contributions now
confessed to by one of the great insurance COM
panies has run largely TO abstract speculation.
An effort has been made to fix the limits, moral
and legal, of the discretion vested in the d1rec-
tors or executive officers of an insurance cor
poraton. Can that discretion be stretched far
enough to cover the diversion of a company's
funds to miscellaneous and doubtful uses IL
it appears that the expenditures were ordered
in good faith and with the avowed, though
mistaken object of protecting the policyhold-
ers' interests? Or are the directors and OIL
cers-as trustees-morally and legally liable
for a misuse of trust funds? These are inter
esting inquiries and good deal can be said in
support of either Of the two contentious. So
far. however, as these questions Of responsible
ity and restitution go, they can be settled nnally
only in the courts There are numerous suits
pending against the Equitable society for the
recovery of misapplied funds. The propriety Of
the New York LIES contributions to political
campaign funds can easily be determined in
the same manner. and, till the courts define the
true scope of a directorate's or boards dis
cretionary power, discussion of that problem
will remain, in a measure academic.
But, whatever may be decided as to the legal
ity of the practice now uncovered by the Arm
strong committee, there can be no disagree
ment as to its viciousness or the need of
corporations of enormous sums for campaign
purposes-if induced by promises of legislative
protection or legislative favors-is outright cor
rupion Even If such gifts are made in a spirit
of patriotism-as doubtless, many were in the
campaign of 1S96-they, nevertheless, involve
dangerous departure from democratic principle
and encourage the use Of a policyhoders saw
ings or stockholders dividends for purposes
not avowed in the terms of the contract. Proba-
ably few corporations would venture to make
contributions TO political committee If it were
understood that the transaction was open and
that the subscription would be publicly acknowl-
edged. Probably, too few political committees
would be eager to solicit aid from corporations
if they were forced to disclose the names of
all the subscribers TO their campaign funds
Under these circumstances it seems plain that
laws. both state and federal compelling politi-
cal organizations to make public both their col
Iections and disbursements would end the prac-
tee of drawing on the corporations to fill an
ever yawning campaign chest. Many states
have already passed measures requiring candi-
dates to file accounts of their disbursements
The power of state to compel a state com
mittee TO open its books is undoubted, and the
power Of the federal government over a COM
mittee managing a national canvass is scarcely
open to question. President Roosevelt in his
last annual message to Congress took this
view, for he recommended radical legislation
dealing with corruption and requiring public
accounting from all campaign committees. Said
the President:
The power Of the government to protect the
integrity Of the elections Of its officials is
inherent and has been recognized and affirmed
by repeated declarations of the Supreme Court
l recommend the enactment of law d.
rected against bribery and corruption in federal
elections. The details of such law may be
safely left to the wise discretion of the Con
hIIf on a. ia IT16n he
sttution 1t is possible to go, and should include
severe penalties against him who gives or re-
ceives a bride intended to influence his act
opinion as an elector and provisions for the pub
LEGATION not only of the expenditures for nominal
tions and elections of all candidates, but also Of
all contributions received and expenditures made
by political committees.
1t may be said that such legislation would
prevent the collection of funds sufficient to
defray the legitimate expenses of a political
canvass. But this argument answers itself. |
Our political expenditures in recent national |
canvasses have been grossly extravagant be- |
yond any imaginary necessities, and in the |
main, probably, without any measurable re- |
suits. Ex-Judge Parker allows himself to think !
apparently, that his defeat last year was due |
to the size of the Republican campaign fund |
But this suggestion is ridiculous President |
Roosevelt would have won last year If the |
Republican National Committee had not had |
81. 900 in its treasury; and Judge Parker would |
have lost had Mr.. Cortelyou courteously put the |
whole Republican fund at Chairman Taggart's |
disposal. Beyond question the Importance of |
much OF the work done by national COM |
mittees has been greatly exaggerated. All the |
necessary direction can be given to a campaign |
by committee which does not spend half its |
time in obtaining subscriptions and which is
ready and willing to submit its campaign ac-
counts to rigid public scrutiny.