Evening star., 1948-01-15
DC. Grand JuYProbe
OF Lobby Financing 10
Start in Few Weeks

District grand jury investigation
OF possible violations of the lobbying
regulation law will start within a
few weeks to determine first why
relatively few organizations have
filed financial statements of lobby /
ing activities, Justice Department
officials indicated today.
Attorney General Clark yesterday
authorized Irving r. Kaufman,
special assistant to the Attorney /
General, to 60 before a District
grand jury, subpoena records and,
where the facts warrant, to present
cases of violation" of the lobbying /
statute of 1916.
The main purpose of the sched- |.
uled grand jury inquiry is to obtain
compliance with registration and /
fiscal statement requirements Of the
law. Mr.. Kaufman, an assistant
United States attorney in Manhat-
tan before being appointed to his
present position several months ago,
has been making preliminary
study of this matter.
Given Power of SubpOenas.
Mr.. Clark's letter of authorization,
filed late yesterday with the clerk of
the criminal division of District |
Court, empowers him to move on |
the grand jury stage and to cover
as much ground as he deems neces-
sary by calling witnesses and issuing |
subpoenas for records.
Department officials disclosed a |
particular interest in what they said
was the failure of many organiza-
tions, covered by the law, to file
requisite financial statements.
About $50 individual lobbyists have
registered since 1916, but only 200
organizations or associations en-
ploying lobbyists have filed such
statements, they reported.
This failure of organizations to
file financial statements of receipts |
and expenditures is defeating one of
the main purposes of the law" they
stated. "The statements Of individ-
ual lobbyists reporting their salaries
and expenses in many cases do not
furnish all the financial information
required by the law because most of
the money alegedly spent to dn-
fluence legislation is not spent by
individuals but by organizations that
employ them"
Penalties Under Act.
The lobbying regulation act OF
1916 provides maximum penalty of |
$4,000 fine and year in Jail for
violation of its various provisions
Moreover, it provides that an in
dividual or organization convicted |
of such a violation cannot appear
before any congressional committee |
for the next three years. Violation
of the three-year ban carries max
imum penalty of $4,000 fine and five
years imprisonment.
District Court officials said they l
do not know just when the grand |
jury investigation will begin. A /
Justice Department spokesman said
1t was "still few weeks away"
A later Justice Department state
ment announced that organizations,
covered by the law, will be given a
reasonable period of time to estab-
GSh to the satisfaction of the Gov
ernment that an honest attempt |
had been made to comply with all
provisions of the act, including
those provisions which require the
registration of the organization, and
that failure to comply with those
provisions was due merely to diff
ferent interpretations of the act,
honestly arrived at"
But the statement added that, |
"where it appears that there has
not been a reasonable attempt to
comply with the act, and the de-
partment finds evidence to proceed |
in accordance with the provisions of |
the statute, the department will take
such steps as it deems advisable.
Each case will stand on its merits"
Wallace Convention Called
BALTIMORE, Jan. Is H9.-The
Maryland for Wallace Committee
today called State convention here
on February Is and said an attempt
will be made then to establish a