Evening star., 1954-12-20
PeriIous Influence
On Politics and
Education Seen
By Robert K. Welsh

Over the protests of minority
members charging "barbaric" in
vestigating methods, a House
committee today accused some
tax-exempt foundations of oper-
ating mainly for tax avoidance
and d erously influencing
education, social sciences and
political affairs.
It released, a 432-page printed
report, including minority views,
as an aftermath to public hear
ings that ended abruptly last
June amid explosive verbal ex-
changes between Chairman
Reece, Republican, Of Tennessee,
and Representative Hays, Demo-
crat, of Kentucky.
Newspapers Assailed.
The report, besides asserting
that some of the major founda-
tions directly supported sub
version in the true meaning of
the term" leveled a blast at
various newspapers. It singled
out several newspaper publishing
companies it said have links with
foundations and charged that
three papers were especially un-
fair in reporting or ridiculing
the committee investigation. It
named the Washington Post and
Times Herald, New York Times
and New York Herald Tribune.
The minority report denounced
the majority's assertion that
some foundations encouraged
Socialism and collectivism." 1t
even more vigorously attacked
the fairness of the majority find
ings and the investigating pro-
cedures, which it characterized
by such terms as pathological"
and "fear sickness"
The majority report. signed by
republican Representatives
Reece, Wolcott, of Michigan. and
Goodwin, of Massachusetts, urged
Congress to continue and in
tensify an investigation Of tax
exempt groups which make
grants for educational, scientific
and similar purposes. The study.
it suggested, should be mostly a
research project with few If any
public hearings.
"Housecleaning Urged"
The majority of the five
member special committee en-
phasized that it favors the exist
ence of legitimate tax-exempt
| foundations and opposes ANY
unnecessary extension of Fed
eral regulations. 1t advised tax
exempt foundations themselves
| to clean house" Otherwise. it
warned, Congress may be forced
| to enact tax and other appropri-
ate legislation. It added that
some evidence indicated need
| for Congress to intervene Ito
protect our society"
Mr.. Goodwin said later he had
"strong reservations and dis
sent from many Of the reports
findings and conclusions" The
Massachusetts, member, in a
statement prepared too late to be
printed in the report. did not de-
| tail his differences. He said he
nevertheless regards the docu-
ment as a majority" report and
understands that a future print
ing will carry his name and sep
/ arate views.
| The minority statement. signed
by Mr.. Hays and Representative
Oracle Pfost. Democrat. of Idaho,
was so vehement in attacking the
committee in general and the
chairman in particular that Mr..
Reece used four printed pages in
reply. He asserted that MIR. Hays
| tried to discredit and harass the
investigation and impugn the
| good faith of the majority and
the staff almost from the start.
He said the Ohio member de-
liberately attempted to frustrate
the investigation and white
wash" the foundations.
Foundations Called Hostile.
Chairman Reece, declaring
that the investigation was not a
partisan issue. denied it was
slanted as q pre-judgment Of big
| foundations. He contended that
| (See FOUNDATIONS, Page A-4.)