Evening star., 1948-03-31
Speedy Registration
OF Groups Seen After
Lobbying Indictment

A rush Of trade associations and
other groups to register under the
Federal Lobbying Act was forecast
today in the wake Of the indictment
yesterday Of the United States Saw
ifgs and Loan League on charges of
failing to register and to file state
ments under the act.
Date for arraignment Of the league
was to be determined by the Jus
tice Department today.
Meanwhile, Irving r. Kaufman,
special assistant to Attorney Gen.
eral Clark, said the Government
would press for an early trial. The
indictment was the first returned
under the act, which became law
August 2, 1s46.
The league said in . statement
that "at no time in its 56-year his
tory has the league engaged in any
activities that could conceivably be
construed as unlawful or not in
keeping with the dignity and respect
Of typical trade association work"
Mr.. Kaufman declared, in o state
ment following the indictment, that
organizations that engage in at
tempts to influence Federal legis-
lation, as specified by the Lobby
ing Act. but who do not comply with
that law, are as liable for that
failure as are individuals"
Need Of Registration Doubted.
In trade association circles, how
ever, there still was doubt as to
whether a group had to register If
it's officials felt its principal purpose
was not the influencing of legis-
istion.
In the case Of the league, which
rs Offices here and in Chicago, the
District grand jury charged its prin-
cipal purpose, since passage Of the
act, was the influencing of legis-
latiou. both directly and indi-
rectly."
The National Association Of Man
ufacturers filed suit here in jan
uary to halt the Justice Department
from carrying out the act until the
court determines whether associa-
tions, as well as individual, must
register. On Monday, the Govern
ment filed motion to dismiss the
suit. The department maintains
the suit is faulty, in that a Gov
ernment agency cannot be re-
strained from enforcing the law
The league was described by At
torney General Clark as a nom
profit national trade organization
with about $500 savings and loan
and building and loan associations
throughout the country in its men,
bership. He said its membership
has total assets Of about $4,000, ,000,-
600.
Statement Lists Interests.
A department statement declared
that among legislation lin which
the United States League has been
interested since passage of the act
are bills relating to housing, the
consolidation of housing and home
finance agencies of the Government,
the real estate mortgage lending
business and the Postal Savings Sys-
tenn"
Three employees of the league
have registered as individuals, ac-
cording to records of the Office of
the Secretary of the Senate. They
are Morton Bodflsh of Chicago
chairman of the Executive Commit
tee and its operating head since
1890; Horace Russell, Chicago, gen.
eral counsel since 1898 and, for six
years prior to that, general counsel
for the Federal Home Loan Bank
Board, and Abner Ferguson, Wash
ingten counsel for the league, and,
from 1910 until 1945, administrator
Of the Federal Housing Admins
tration.- = ''> -.
Failure to comply Is punishable
by fines as high as 5000, plus q
three-year ban on appearances be-
fore congressional committees and
other lobbying activities.