Evening star., 1944-08-30
Way Seen to Enforce
Corrupt Practices Act
Hillman Testimony Is Regarded
las Basis for Action
BY David Laurence

BY Dauid Laurence
Testimony given by Sidney Hillman,
chairman Of the CLOS Political Action
Committee, could furnish the basis for
rigid enforcement of the Federal Cor
rupt Practices Act If the Justice De-
partment cared to do 50.
He has just testified as follows before
the Special House Committee Investi-
eating Campaign Expenditures:
ITO finance the work Of the commit
tee, we are requesting voluntary con-
tributions in the sum Of 81 from the
members Of the Go"
The Federal Corrupt Practices Act
defines a contribution" as anything
Of value" Thus to furnish a member
ship list OF a labor union is a contribu-
ton by that labor union, and the law
forbids unions to make contributions to
Federal election campaigns Any faeil-
ity offered by labor union to a polit-
ical committee becomes contribution"
and hence violation of the statute.
Contribution" Under Law.
Mr.. Hillman, himself, is paid oficial
Of labor union. II he is giving all
or substantial part Of his time to a
political committee and still draws his
salary from a labor union, this is
contribution" by that labor union in
the eyes of the law.
incidentally, there doubtless have
been cases in which corporations have
loaned or will loan their executives to
political committees for the duration Of
a campaign. Unless these executives
go on leave Of absence or their salaries
are cut down by deducting payment for
the time spent away from the company,
such corporations would be making
contributions" to political campaign
and would be violating the statute.
Mr.. Hillman points to the political
activities of various associations and
organizations, but the law does not
forbid the creation of political COM
mittees. 1t merely declares that the
money shall not be contributed by cor
porations or labor unions
If any of the various associations,
like the National Association of Manu-
facturers, for example which Mr.. Hill
man mentioned. are engaging in polit-
ical activity, the burden of proof will
be on such associations, first, to prove
that the money they receive from cor
| porations is not used to help elect
candidates for Federal office, and, sec
! ond, that the member corporations do
not make available lists of stockholders
to political committees" for the purpose
OF securing from them contributions for
the financing Of any political activity.
| Most of the associations named by
Mr.. Hillman as engaging in political
activity do not indorse any political
candidate or party. The CIO Political
Action Committee, having Endorsed the
Roosevelt Truman ticket, comedies
through its testimony that it is a
political committee as the term is
defined in the Federal Corrupt Practices
Act.
Giver and Recipient.
1t Is unlawful, incidentally, for any
political committee to receive contribu-
tions from prohibited sources, so the
penalty attaches both to the eiver and
the recipient. The labor union mem
bers are within their rights in making
voluntary contributions to a political
committee just as are stockholders OF
corporations, but if either a union or
a corporation makes available a list or
loans its personnel or contributes any
facility it lays itself open to a charge
Of law violation.
Even the assembling of labor union
members in list for mail canvass or
in group for the purpose of listening
tc plea soliciting funds is violation
of the Federal Corrupt Practices Act
ana specifically the Smith Connally
amendment. This is because it is the
labor union organization which calls
the meeting and offers a list or other
facility which could not be secured
otherwise except through the action of
the labor union.
Obviously, to assemble members for
the purpose of giving them an oppor-
tunity to contribute funds and furnish
hall or meeting place is very valuable
to any political committee which has
access to such group of prospective
donors Of funds.
Two wrongs do not make a right. II
various associations on the antilabor
sioe have been indorsing political candi-
dates and assisting directly .or in
directly in their election, then any
funds expended by such associations,
If obtained from corporation treasures
or through the assistance of corpora
tions should be investigated and prose-
cutiops should follow
1t would be a good thing II the
Federal Corrupt Practices Act were
rigidly enforced by the Justice Depart
ment with respect to all possible offend
ers irrespective of which party or cause
they are supporting.
Plainly, neither labor union member
ship lists nor stockholder lists can
be furnished by unions or corporations,
respectively. either openly or clandes-
timely without violating the provisions
of the Federal Corrupt Practices Act.
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