Evening star., 1943-07-20

Wall Street David Lawrence.
bankers and the Republican con-
servatives did stupid things in pub
lie relations and politics when they
couldn't have their way in govern
mental affairs, but evidently the
labor politicians are about to COM
NIT the same errors and provoke
an opposition lineup which can
furnish a political. boomerang.
II labor union politicians start
movement to defeat at the polls the
Representatives and Senators who
voted for the mild and really in
nocuous Smith Connally law, 1t may
start q Nationwide demand 10 elect
to Congress a majority which will
do something about the one-sided
labor laws of America.
There are plenty of special priv
ileges which the labor politicians
have obtained which will not be
overlooked If labor violence Is to be
brought squarely before the Amer
lean people as the issue in public
debate in the 1914 election. Also,
should President Roosevelt line up
his fourth-term campaign behind
these labor politicians, it will Ger
tainly make it easier for the coun-
try to make up its mind whether 1t
wants a Congress hereafter inf1u-
enced by special interests or by the
public interest.
Political Funds Restricted.
Attention will begin to be focused,
too, on how the CLOS Direct Action
Political Committee, just organized,
il. going to function. Under the
terms Of the Smith-Connally law,
an amendment was added to the
Federal Corrupt Practices Act which
prohibits labor unions from making
any contributions to political
campaign in which Federal officers
are being elected.
Thus 1t is unlawful to lend or to
contribute funds or to give any
thing OF value" to the campaign of
any member of Congress or in aid
of any political contest, and for
this purpose any individual, whether
recognized or not by the candidate
himself, becomes political COM
mlttee" as defined in the statute.
If the CIO attempts to use its To-
cal unions and their machinery as
well as the full energies" of the Of
ficers of the unions, it could be con-
strued as contribution to political
campaign. Clearly it will cost money
to carry on campaigns. and rallies
and to distribute posters and buy
radio time to help defeat Senators
and Representatives and certainly
also those same members of Con-
gress are not going to sit idly by
and see a Federal statute violated,
They will insist on prosecution.
Business Has Learned.
1t Is quite possible that the labor
union politicians are not familiar
with the drastic penalties involved
In the Federal Corrupt Practices
Act because up to now labor unions
have not been covered by it. Cor
porations for many years have been
prohibited from making any con-
tribut1ons and the law doubtless
Will be more rigidly observed in the
coming campaign than ever before.
Executives Of corporations who
used to be given leave of absence"
to serve without pay on political
campaign committees and business
mems leagues will have to watch
their step so that they do not re-
ceive any compensation from their
employers for time contributed by
them to political committees or
campaigns. If an executive on leave
OF absence gives his time to a cam
paign committee and still is paid a
salary by his company, this would
be construed as a financial contri-
button by the corporation itself.
Eliminates Levy Scheme.
Neither corporations nor labor
unions can contribute money or
things of value but as individuals
the members of corporation,s
executive staff or the members of a
labor union can make contributions
directly to any political organiza-
tion. This means that any solicita-
tion for funds must be separate and
dlstlnct from ones regular business
or Its revenues, and it is no longer
permissible for labor unions to lew
special assessments for political
purposes or to use any labor union
funds directly or indirectly to carry
on political campaign.
The CIO executives NAV. of
course, as individuals form a sepa-
rate political league or organization
and raise funds by soliciting work
ers but when they function as Of
ficers Of the CIO or use its funds or
its lists of members for circulariz-
ing, they apparent will be coming
into conflict with the statute and
the decisions derived from it in the
past by the courts.
Decentralization Rights Raeery,SN