Evening star., 1937-06-08

has done is legal S
and is only an - ,
avoidance of the
spirit of the law" as the phrase was
used last week by the President when
he sent special message to Congress
denouncing lawyers and taxpayers who
think up Clever little schemes" TO get
around the law.
But whether the device used to cir
cumvent the Federal corrupt practices
act is or is not legal is something for
the courts to determine Representa-
tive Smell, minority leader, has begun
an inquiry to determine whether a
congressional investigation should be
authorized by the House, but if the
facts are as set forth in the evidence
possessed by Mr.. Smell, then the ques-
ton is one for grand jury and not
q congressional committee.
Confronted by somewhat similar
problem in connection with the Teapot
Dome scandal, President Coolidge did
not intrust the subject to the Depart
ment of Justice, but appointed two
special prosecutors, a Republican and
a Democrat, Owen RobertS-noW
Supreme Court justice-and former
Senator Altee Pomerene of Ohio, and
gave them word to go ahead end sift
the matter to the bottom whether it
led to criminal or civil prosecutions.
Four Books Sold for $1,000.
Here are the facts and also a para
graph from the law so the average
person can determine for himself
whether, to use the Presidents own
language in discussing law avoidance,
"the decency of American morals is
involved"
First, there is letter written on the
stationery of the Democratic National
Committee and signed by one of its
representatives, which letter was writ
ten in the year 1887 and addressed to
a certain corporation:
II took great pleasure in reporting
my telephone conversation with you
today to Mr. Farley and I want to
assure you that all OF us here will
deeply appreciate your help at this
time in clearing up our def1cit.
Il am inclosing the contract for
four books and would appreciate your
signing and forwarding it with your
check for $1,000 in the inclosed en-
velope.
I'VE are using this book as a means
OF clearing up the deficit and the
President has made his contribution
by individually autographing each Of
the volumes.
The sale of the book enables us to
legally accept corporation checks and
this is the way all Of the companies
who are assisting US are handling
these expenditures.
Contributions Forbidden.
Many corporations have bought the
books, which are merely the same book
that was issued at the last Demo-
cratic National Convention but with
de luxe binding and with the auto
graph of the President on them.
The foregoing provision made it
possible to sell the same books more
than once and thus get in more
money. Now the books themselves
are clearly articles of some value, and
yet corporations are forbidden to give
contributions and political committees
are prohibited from receiving con-
trlbutions. Here is the way section
241 of the Federal corrupt practices
act reads under the heading "Defini-
tons:
The term contribution includes
6ift Snhcor5rfinp
deposit, of money, or anything of
value, and includes a contract, PROM
tse, or agreement, whether or not
legally enforceable to make a con-
tribution"
Then there is another part Of the
Federal corrupt practices act, namely,
section 251, which says
1T is unlawful for any national
bank, or any corporation organized
by authority of any law of Congress,
to make contribution in connection
with any election to any political Of
nee, or for any corporation whatever
to make contribution in connection
with any election at which presiden-
tial and vice presidential electors or
q Senator or Representative in. or a
Delegate or Resident Commissioner to,
Congress are to be voted for, or for
any candidate, political committee, or
other person to accept or receive any
contributions prohibited by this Sec
ton.
Penalties Set Forth.
Every corporation which makes
any contribution in violation of this
section shall be fined not more than
$4,000; and every omcer or director
Of any corporation who consents to
any contribution by the corporation
in violation of this section shall be
fined not more than $1,000 or i'm
prisoned NOT more than one year, or
both"
The penalties for persons other
than corporation officers, namely
members of political committees, are
set forth in section 252 as follows:
ANY person who violates any of
the foregoing provisions of this chap
ter, except those for which a specific
penalty is imposed by section 2O8
OF title 18, and section 251 of this
title. shall be fined not more than
$1,000 or imprisoned for not more
than one year, or both"
Now it may we'll be that the corpo-
fations themselves in all cases did
not buy the books, but that individ-
uals did. On the records of the clerk
OF the House of Representatives,
along with other receipts listed by the
Democratic National Committee since
last election, are the names OF sew
eral corporations and the amounts
they paid for the books in question.
There is another possible evasion or
avoidance that possibly will be brought
forward. namely. that the money was
not given for the purpose Of electing a
President or Vice President or mem
bers of Congress since the contribu-
tons were actually made after the
election occurred.
But II 1t isn't an illegal step, 1t Ger