Evening star. [volume] (Washington, D.C.) 1854-1972, 1936-02-08
j. NJ. v. IN POLITICS
BUT FIRMS BARRED
Laws Declared Unfair to
Corporations Desiring to
Finance Campaigns.
BY DAVID LAWRENCE,

Inc united Mine workers OF Amer
lea, who this week entered the political
arena by pledging some of their men,
bership funds to help re-elect Presi-
dent Roosevelt, established a prece-
dent that may conceivably have a
far-reaching effect on the national
campaigns of the future.
Not long ago, when the National
Association of Manufacturers was
urged to 60 into politics, there was
much criticism of that suggestion, and
today the NJ. A. NJ, under the leader
ship of its new president, Colby M
Chester, chairman of the board of
General Foods Corp, is distinctly OPP
posed to any participation by the asso-
citation in political affairs.
But the United Mine Workers ap-
parently can do something which indi-
vidual corporations or groups of cor
porations cannot do-namely, contrib
ute directly to a political campaign
and take part in it. Under the present
Federal laws corporations cannot
make contributions to any political
party.
Unions Not Incorporated.
Labor unions, on the other hand,
are not incorporated and hence can
use their members dues for political
purposes without running afoul of the
law. 1t is true the United Mine
Workers, for instance, will have to
report all its expenditures for political
purposes, which it doubtless will do
But the fact that labor unions can
do that which corporations cannot do
presents an interesting angle of I'M
equal application of Federal laws.
Most corporation executives doubt
less would have no objection to seeing
labor unions contributing to political
campaigns, but they, on the other
hand, might want to see the law
amended to enable the employers of
the country to use company funds for
the same purpose, subject to the con-
sent of the stockholders.
In some instances, corporations
have placed the matter of fighting
pending legislation before their stock
holders and have been authorized to
spend funds for public education on
their particular matters, especially
when legislation has seemed to
threaten the safety of the invest
mentS.
Different From Campaigning.
This, however, is a different matter
fhaIfi tn
paign where the manifest purpose is
to elect or defeat candidates for pub
lie Office. The Federal statutes are
rather vague as to what constitutes a
political cause, but it would seem that
only funds contributed toward the
election or defeat of particular can
didate, or group of candidates, for
Federal Office would be within the
Federal scope. Otherwise, any con-
tribution by a corporation toward the
various organizations engaged in sup
porting or fighting particular issues
or measures would be subject to at
tack and the right of petition guar
anteed by the Constitution would be
seriously impaired.
The decision Of the United Mine
Workers, by vote of their convention,
to authorize the use of membership
dues for political purposes is a short
step to the organization of a labor
political party, as in England. The
American Federation of Labor has
rarely, as an organization, thrown the
weight Of influence in an election
campaign and there Is no case on rec
ord where it has openly used its funds
to help elect or defeat members OF
Congress, though doubtless members
Of local unions have done great deal
of electioneering.
It is difficult to see how the Federal
laws prohibiting corporate contribu-
lions can long 60 unamended If by
the simple device of avoiding incor-
poration large groups Of individuals
may participate virtually as political
committees in election campaigns and
use membership dues for that purpose
which were originally collected for
other purposes.
Stockholders Handicapped.
Stockholders of corporations might
meet the situation by forming groups
of their own and contributing directly
to political campaigns, but the expense
of collection Is greater than when a
corporation is authorized to levy a
special assessment on behalf of its
stockholders or to take certain con-
tributions out of corporate funds.
Incidentally, the Federal Govern
ment itself, by means of the Guffey
act. which in effect recognizes the
United Mine Workers as the national
bargaining unit, makes it easier for
the union to increase its members.
Also the "check-off," whereby employ
ers withhold money from the weekly
pay envelopes and pay the dues to the
union officers, makes it relatively mex
pensive for the United Mine Workers
to collect its funds. Thus we have an
anomalous situation: A corporation
cannot itself contribute to political
parties the funds that it may be au-
by its own stockholders to con-
tribute, but this same corporation, II
it Is q coal concern, must recognize
the instructions of its employees to
divert pay checks paid out by the
corporation to q union which in turn
takes an active part in political cam
paign.
The United Mine Workers have as
serted o right-which they properly
have and should be permitted to en-
joy--but it raises the question Of
whether similar rights should not be
aiiahia "a nfhar xrndars If cikizens