Evening star., 1941-02-26
Justice Department
MayAsk Curb on
Pressure Groups
Seek to Close LoophoIes
In Hatch and Corrupt
Practices Statutes

In Hatch and Corrupt
Practices Statutes
In the wake of a searching grand
jury probe that disclosed excessive"
expenditures in the recent cam
paign. but found no grounds for
criminal action, the Justice De-
partment today was expected to
send to Senate and House Election
Committees report incorporating
suggestions for closing gaping holes
in the Hatch and Corrupt Practices
Acts that the inquiry revealed.
Drafted by Maurice M. Milligan,
special assistant to the Attorney
General, who directed the grand
jury investigation in District Court
which was completed yesterday, the
report proposes amendments to the
Federal election laws that would
effectively limit political expendi-
lures by committees and individuals,
and at the same time, in a new
departure, curb the activities of
pressure groups" seeking to inf1u-
ence the course of legislation.
The grand jury, Mr.. Milligan said,
discovered that the obscure Ian
guage of the Hatch Act permitted
widespread evasion of the spirit"
Of the law, which purports to limit
committee" expenditures to S3,000,-
900 and individual contributions to
IS 900.
Restriction "Nullified' Explained.
Under its present language" he
explained. "the Hatch Act fails to
make clear whether (a) individual
political committees-national, State
or local-are prohibited from &C
cepting contributions and making
expenditures in excess of $4,000 900,
or whether (b) the aggregate col
lectionS and expenditures of all such
political committees supporting the
same candidate or candidates are
limited to s3,000,000"
Dealing with the provision limit
ing to $1,000 individual contribu-
tionS on behalf of any candidate
or candidates for elective Federal
Office, including the Office of Presi-
dent and Vice President" he said
the purported restriction is in effect,
"nullified by the exceptions granted
to contributors to State and local
political committees"
"As a result of these exceptions,
Mr. Milligan continued, the re-
ports of State and local committees
have shown that certain contribu-
tors and members of their families
have legally made contributions far
in excess of $4,000, in some in
stances amounting to hundreds Of
thousands of dollars. Any indi-
vidual may, through the 48 State
committees and hundreds of local
political committees, contribute an
almost unlimited sum to influence
the election of a candidate or can
didateS for Federal elective Office
without violating Federal law"
Exceeded Supposed Limit.
To put an absolute ceiling of So
900, 900 on committee" expenditures
in behalf Of national party can
didates after the nominations, Mr.
Milligan suggests a Hatch Act
amendment that would hold the
national committee of each party
responsible for seeing that the ag-
gregate of its own expenditures and
those of allied committees did not
exceed this figure.
| In this connection he said that
! reports filed showed that numerous
| organizations, acting independently
of the regular national committees,
collected and expended money in
the last election though in no
instance was there evidence to in
dicate that that such sums were
in excess of S3,000,000." In the
aggregate however, it was added,
the expenditures far exceeded the
supposed limit.
In proposing to avoid the "mul-
tiple" contributions by which in
dividuals went over the $1,000 limit,
Mr.. Milligan suggested that a limit
on aggregate contributions be fixed,
but offered no figure. He COM
mented, however, that the $4,000
limit would appear to be "unneces-
sarily low for aggregate individual
contributions"
In striking at the groups which
seek to influence legislation, Mr..
Milligan proposed broadening of
the section of the Corrupt Practices
Act to include these under the same
restrictions that now apply to groups
working for political candidates.
Twilight Zone" Exists.
"It is evident" he said in ex-
PLANTATION, that under the present
law committee may be organized
for the purpose of influencing leg
islation, or fighting higher taxa
ton, or any similar activity, and
then, as a national election ap-
proaches, take an active part, in
two or more States, by radio or mail,
for or against the candidates of
a national political party. 1t would
appear that such organizations
should come within the terms of
the Corrupt Practices Act, though
| they do not seem to have been
considered in the present law, and
necessarily, a twilight zone does
exist"
Another proposal from the AS
sistant Attorney General is designed
to ban the flow of anonymous pol
litical literature through the mail.
Scurrilous matter circulated in the
last campaign already has caused
Chairman Gillette, Democrat, of
Iowa of the Senate Campaign Ex-
penditures Committee, to get be-
hind restrictive legislation.
Senator Hatch, Democrat, of Nav
Mexico, author of the Hatch Act,
thought Mr.. Milligan's proposals
very good"
Il have felt for some time" the
New Mexico Senator told reporters,
that the law ought to be strength
ened and improved, and I have been
waiting for the results of the grand
jury investigation and Mr.. Millgan's
report, along with the reports of the
congressional committees concerned
urith avyaylif,,rar