Evening star., 1928-03-02
DEFICITS" REPORT
MAY Be REQUIRED
Testimony of Hays Uncovers
Weakness in Law on
Party Funds.
BY DAVID LAWRENCE.

viii II. Hays. former Republican ma
tional committee chairman. has un-
covered weakness In the law with re-
spcct to the reporting of campaign con-
tributions that may be corrected by
legislation. It is that report is re-
quircd Immediately after an election
but there is no requirement with re-
Spcct to the reporting OF how deficits
are made up.
The buying of deficit" Is consid-
cred in political circles very easy to
handle If the party incurring the def
cit wins the election, but corresponds
ingly hard to take care Of II party Is
defeated
The Democrats have been having a
perplexng time trying to raise money
to make up their deficits The Repub-
licans quickly wiped out their deficit
in 1920.
Subsequent Contributions.
The contributions reported to Con-
CrcsS included those made at The time
the Republican national committee filed
It's list, but no testimony or evidence
had been given en- subsequent cOntri-
buttons until Mr. Hays was summoned
And II it had not been for the Con-
tinental Trading case, the chances are
the public would never have known
now the 1920 deficit was made up.
The whole episode Is significant be-
cause Mr.. Hays was the victim Of his
own philosophy about campaign con-
tributiOns. He was inSistent that II
was wrong to collect more than $1,000
from anybody He started the 1920
campaign that way only to meet the
frowns of some of the veterans. who
said big contributions should be ac-
ccptcd. Nff. Hays was obd1iratc. and
the fight was carried TO Senator Hard
ing. who, as candidate, had consid-
cradle influence in the financing of his
own campaign. The Older heads said IL
was all very we'll to limit contributions
TO $1,000. but there would be deficit
And then the deficit had to be met
Mr.. Hays felt personal responsibility
for 1t because it had been incurred
under his management and under his
one-thouSand-dollar plan. But he was
beaten on the issue. He could not raise
the necessary funds to make up the
deficit without calling on some OF the
wealthy men in the Republican party
He was compelled TO go TO the big con-
tributors after all.
Hays Fears Realized.
HAYS predicted and feared. namely that
the public would get wrong impression
from large contributions. has happened
And Mr. Sinclair. whose connection
with naval oil leases granted under the
Harding administration has since been
denounced by the Federal courts, stands
before the country as the largest single
contributor to the campaign fund OF
the administration from whom he re-
ceixed direct benefits.
Mr.. Hays testified that he knew
nothing Of the Continental Trading
cases and had nothing to do with the
oil lease transactions. But the political
world will assume that Mr.. Sinclair
was on such friendly terms with the
Harding administration because he was
heavy campaign contributor and that
will probably be the basis OF the Demo-
cratic attack whenever the issue Is
raised
Some legislation requiring annual rc-
ports from the major political COM
mittees undoubtedly will be forthcom-
ing a. result OF the revelations made
by VIII Hays.
aopvrIght l9"S