The New York herald., 1922-07-06
Says That the Federal law
of 1907 No Longer Is
Held Effective.
CORPORATIONS NOW FREE
May Contribute to Political
Funds, as Legislatures DO
Not Elect Senators.

sA.A--s
New York Herald BuYeau,
Washington. ID. c.. July 5.
Not only has the limitation on eX-
penditures Of candidates for the Sem
. ate tr n.ifnary and final election cam
paigns been removed but the Federal
law Of 1907 prohibiting corporations
from contributing to campaign funds
is nr longer in effect so far as Sena-
torial candidates are concerned, ac-
cordlng to the latest Interpretation Of
Attorney General Daugherty's ruling
in connection with the Supreme Court
decision In the Newberry >case.
Since the disclosure several weeks
ago by THE New YoRK HERALD that
there was no restriction under the
Attorney-General's ruling on the cam
paign-expenditures of Senatorial can
didates in either the primary or final
elections and the further disclosure
in an article published last Monday
morning that no action has been taken
by Congress to remedy this condition
Constitutional lawyers have been giv-
ing renewed attention to the whole
question of money in this years po-
litlcal campaign.
Constituting the corrupt practices act in
connection with the Newberry decision
Attorney Genera. Daugherty in letters
to Representative Luce (Mass.) and Sen
ator Posnerene (Ohio) held that 1t was
unnecessary for candidates for the House
or Senate to file expense statements for
their primary campaigns and that in the
case of Senatorial candidates the restrsc-
tion was removed also with regard to
the expenditures in final election cam
paigns because, as ne explained. United
States Senators are not now elected by
the legislatures OF the States as contem-
plated in the corrupt practices act"
No Change. Contemplated.
II would be simple matter to change
the act in this respect so as to bring up
to date the language which was enacted
into law before the adoption of the con-
stitutional amendment providing for the
popular election of Senators. But noth-
ing has been done by the Senate except
to refer several bills on the subject to a
subcommittee. which is apparently too
busy with other things to report them.
Adopting the same line Of reasoning
which Mr.. Daugherty followed in con-
STRUNG the law limiting Senatorial cleo
tion expenditures, 1t becomes apparent,
according to the view of several Sena-
torr, that the earlier act of January 26,
1907, which prohibited corporations from
making contributions to the election OF
President, Vice-Presdent. Senators and
Representatives. Is invalid in the case
or Senator's
That act provides "t shall be unlawful
for any corporation whatever to make
q money contribution in connection with
any election at which Presidential and
vice-Presidential electors or a Repre-
sentative in Congress is to be voted for.
or any election by any State Legislature
Of a United States Senator"
Since United States Senators are no
longer selected by the legislatures Of the
different States, but by direct vote OF
the people, Senators and constitutional
lawyers are disposed to believe the lid
is off" regarding Senators, and there are
no restraints now on corporations as re-
CARDS campaign contributions.
A sensation was caused at the Capitol
when it was pointed out that apparently
corporations can get into politics with
both feet by contributing freely to help
put over some favorite. who in turn will
be expected. II not required. to look az
ter their interests In the Senate.
Old Abuses Recalled.
Senators who recalled the abuses
which crest into legislation prior to
1907 when the corporations were curbed
by the enactment of a stringent law
eliminating them from politics made
dire predictions. Secretly, however
some Of the Senator'S up for reelection
may be glad of the situation and may
make the most OF the opportunity.
Senators who favor clean elections
told in detail OF some of the nefarious
activities of the corporations in the old
days and how they expected in return
for big campaign contributions specia
Legislation at the expense of the masses
So brazen did they become that the peo
pie virtually rose up en- masse and de
manded that corporations be kicked ou
OF politics and kept out. In respons,
70 that demand Congress in 1907 en-
acted the following law:
That II shall be unlawful for any
national bank or any corporation
organized by authority OF any laws
OF Congress 10 make money con-
tribution In connection with any
election 20 political office. II shall
also he unlawful for any corpora
ton whatever 10 make money con-
tribution In connection with any elec-
tlon nj which Presidential and Vice.
Presidential electors or a Represen-
tatIve In Congress is to be voted for
or any election by any state Lcsisla-
tur- Of n United states Senator.
Every corporation which shall
make any contribution IN violation
OF the foregoing provisions shall be
subject 10 a fine mot exceeding 5000
and every officer or director of any
corporation who shall consent TO
any contribution by the corporation
I'm violation OF the foregoing pro-
visions shall. upon conviction. Al bc
punished by a fine VI not exceeding
$1,000 and not less than s2so. or
bv Imprisonment for a term of not
Smyre man one year. or both. such
inc and imprisonment In the discre-
tIon OF the court.
Now that law. say those In favor o
clean elections. had most salutar,
effect. and IL practically drove the cor.
porations out OF politics and their activi
ties were limited 90 paid lobbyists a
the Capitol
IL appears now. however. that undeI
the chaotic conditions wrought by ths
recent dscisi~n Of tho supreme Courl