Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-06
SENATORS GRILL
!. ARNOLD ON MONEY
Funds Used in Educational
Work, Witness Tells
Lobby Probers.


corporations and individuals all over
the country by ]. A. Arnold, manager
and washington agent Of the Southern
Tariff Association and the American
Taxpayers League, members OF the
Senate lobby committee today con-
tinued to question Mr.. Arnold closely
about the financial accounts and the
correspondence of these two organlza-
tions and about the activities OF him
self and his assistants in Minnesota,
Mississippi, Louisiana, Florida ana otheF
States. , 49,.
tho money was used in "educationaF
and organization" work for the purpose
of developing sentiment in favor OF
reduction in the corporation income TAX.
repeal of the Federal estate tax ana
protective tariff rates on Southern proo-
ucts. , ,,o.,,,oo,,
Senator Caraway, chairman Oh the Colil-
mittee and Mr.. Arnold over the AalluIe
of the American Taxpayers League 10
Give detailed information regarding its
finances and activities to the Assocla-
ton of Commerce of st. Paul ana the
Advertisers National Protective Bureau
of Minneapolis, MINI.
Caraway's Interpretation.
"Why. if your organization is on the
SQUARE" asked Senator CaraWay, "dlon
Won feel impelled to give the 1ntorma-
fion requested? The inference arises
in nv mind that were getting the money
for yourself, unless you give an e~pla-
nation" .,s
The witness also denied emphatically
that he was lobbying" although ne
admitted working in behalf OF tarln ana
tax changes.
"a" AyVhat do YOU understand lobbying to
bep" asked Senator Walsh. .,s
at don't know" replied Mr.. ArnoLo'
MIR. Arnold admitted that neltner ne
nor any member OF his organlSaCiIn LI"S
anv special training in tax problems.
When Mr.. Arnold stated that neither
the Southern Tariff Association nor the
American Taxpayers League, Wni'n 10,
gether collected about $25O,OOO, mao
made no income tax returns, SENATOR
C,araway irltimated that the commit
tee would carry the Investigation Oh tniS
matter to the Treasury DeparInent;
Mr. Arnold said that he understood
organizations of this kind uio not nave
l. make income tax returns. -,... I
'.WiIl YOU give the committee WrltCen
authority to 90 to the treasury anu
examine your personal income tax re-
turns?" asked Senator Caraway.
ayes" replied Mr.. Arnold.
Walsh Reads Letters.
Senator walsh read several letters
obtained from the files of the Southern
Tariff Associations Office in, this city
to persons in Mississippi suggesting tnat
the protective tariff sentiment IN that
state be organized and brought to bear
rpon Senator Pat Harrison OF MSslS-
sippi. who was referred to as the prln-
cipal advocate of free sugar IN the tarln
bill -, |
s'That isn't lobbying-tl1at is devel-
oping sentiment" said MIR. Arnold.
"Of course, If you can excite protec-
ton sentiment in any Southern STATE,
Won get more money out OF 1t, don't
Sou?" Senator walsh asked.
4 THAT'S right" admitted the WlCness:
Senator Walsh asked whether that
r,asn,s the real purpose in endeavoring |
to arouse such sentiment and Mr.. AR
mold replied that it was ito carry on
4I1a work 's375gSs AZ
senator walsh wanted TO know
whether Mr.. Arnold was trying to .'bulld
a fire under Senator Harrison, ana
Mr. Arnold replied that the only pur-
nose was to let Senator Harrison know
of the protection sentiment IN nlS
+, one letter written by Arnold suggest
ed that if the protective tariff Sentl-
nent in Mississippi and Louisiana were
organized the result might be TO put
"courage into President Hoover ana
induce him to stand for the House rates
on sugar. Asked whether he thougnt
the President could be Influenced IN
this way, Mr.. Arnold replied:
at never heard of President VINO
was not amenable TO public sentiment
Z Attitude Is Disclosed.
Two letters disclosing Arneld's atu-
tude toward prospective contributors 10
the American Taxpayers League en-
gagged the attention OF Senator Walsn,
who INQUIRED into Arnold's purpose In
declining to furnish information to or
carnations his organizers canvassed Tor
Z The st. Paul, Mimi, Association Of
Commerce wrote Arnold last September
requesting a description of the Taxpay.
ers' Leagues activities, its purposes ana
facts about the personnel. the Ietter
said members Of the association VINO
had been canvassed by men purportng
TO represent Arnold had asked for the
information.
: correspondence read into the commit
tee record disclosed that Arnold had
referred the request to j. w. Groves
of the Minneapolis Trust Co., State
chairman of the Taxpayers League
Commenting on tne have req Sef about All
the money we can out of st. Paul and
4 doubt the wisdom of submitting sucn
information to prospective contributors"
Z Asked by Senator Walsh why SUCH
information should be concealed,
Arnold said there was no occasion LOT
giving it, inasmuch as his representa-
tive had left st. Paul. The witness
Though another man in his Washing
ton office sent out the letter and he
characterized its phraseology as I'M
fortunate.
He explained that the request related
10 matters that concerned the Mime
sofa organization and was referred TO
Groves as a matter Of course.
Z Advertisers Bureau Query.
Another letter, from the Advertisers
National Protective Bureau at MIN
sneapolis requested similar information.
IAN official of the bureau wrote TO Ar
mold saying that members OF the eu-
Teau had been approached TO JOIN the
Taxpayers League and requesting tne
names and addresses OF the leagues
organizers and the membership agree
s1nent This information was held TO be
necessary to the bureau because OF
1.-THE great amount OF fraudulent sollclta-
ton"
: Arnold testified he referred the request
TO Groves, and said in letter TO
Groves, I'VE do not as rule care 10
submit the work of our organization to
the approval of these local concerns.
z Senator Walsh questioned Arnold
about the propriety of concealing infor-
nation about his organization when
S;,rospeutive contributors were seeking II
and asked why he had been unwilling
Ito submit financial statement OF re-
sceipts and expenditures as requested by
the ST. Paul Association of Commerce.
Arnold answered that his organiza-
.4in,, had it's own functions and he