give a report including all contributions and disbursements as of December 31, the day before.

Senator GORE. The chairman of this subcommittee is familiar with the reports required by law. The committee, however, wishes to make regular reports to the American people, not just to the Clerk of the House.

It is the hope of the chairman of the subcommittee that it will be possible for this committee to give weekly reports, if possible, on the financial standing of all political committees throughout the course of this campaign.

It is the hope of the chairman of the committee that the work of this subcommittee will have a salutary effect upon the conduct of the election, and that one of the results will be an enlightened and perhaps aroused public opinion.

It is the hope of the chairman that an enlightened and aroused public opinion will support, vigorously support, the necessary remedial legislation.

You heard a portion of the testimony of Professor Heard in which he made the point that the practices, the political practices, of today are the results of the system. It is the hope of this committee, the chairman of this committee, that we can bring about some remedy of the system.

In consequence, the chairman hopes that it would have the cooperation of all political committees in furthering not just the reports required by the statute, but that records of political committees would be available for examination with respect to the contributions received and expenditures made at regular intervals during the course of the campaign.

Mr. BUTLER. Do I understand that it is the hope of this committee that their own staff members will be given access to our records or that we are going to be asked to prepare formal reports to submit to this committee either weekly or biweekly?

Senator GORE. Well, it was the hope of the chairman of the committee that there would be no difference between the records and the reports and I presume there will not be differences; but that in order for the staff to be fully and accurately informed and acquainted with accounting procedures, that the representatives of the committee would have access to, certainly, the summary records of the various political committees.

Mr. BUTLER. Of course, we would have no objection. The point I am trying to make is that if we are required in addition to our bookkeeping under the supervision of professional accountants who are hired and come right into our office and supervise the conduct of our bookkeeping, and making of all record, if we were required to prepare an additional report and make analyses and various things for this committee, it might well become a burden which would be very difficult not only for our committee but for every political committee during the period of time when the staff is burdened and loaded with the necessity of opening envelopes, we hope, and taking out checks and putting them through the accounting procedures and the banking procedures that are required.

We depend, I think that we will have-whatever amount of funds we have for this campaign-we will have many more times contribu

tors than the Republican Party will have in the Republican National Committee, and, therefore, we handle a great many thousands of small contributions, and it is a chore.

But I want to assure you that we will do our best to comply with any request that is made by this committee.

Senator GORE. The Chair appreciates that and wishes to say to you that he, and he feels confident all members of the committee, are cognizant of the tremendous responsibility which you and Mr. Hall and the leaders of the other political committees bear.

It wishes to pursue its study, wishes to conduct its work, in a way to minimize interference with your operations, minimize the additional burden which it would place upon you. It also expects to offer its cooperation in that regard.

Despite those desires and intents, this committee has specific responsibility which it has determined to pursue. It expects and appreciates your offer of cooperation from the committee which you head.

Now, there are other questions which I would like very much to pursue with you, but I must desist now and afford my colleagues an opportunity to ask questions.

Senator Mansfield.

Senator MANSFIELD. Mr. Butler, when you said that you expected the Democratic National Committee would receive many more contributions than the Republican National Committee, you meant small contributors?

Mr. BUTLER. Yes, certainly only in number and not in volume or the aggregate.

Senator MANSFIELD. Could you tell the committee how much it costs to pay for a half hour nationwide TV broadcast?

Mr. BUTLER. Well, that would depend upon whether or not you have one network or more than one network. I would say that the average cost for the average size TV network that you would preempt from an advertiser who had already gotten his number of stations together for his particular program would be approximately $60,000 to $70,000 for one-half hour.

Senator MANSFIELD. That is one network?

Mr. BUTLER. One network.

Senator MANSFIELD. And suppose you got them all, what would the cost then be, approximately?

Mr. BUTLER. I would say it would be approximately $200,000 to $220,000 for one-half hour for the 3 major television networks.

Senator MANSFIELD. And if you included the Du Mont networks into that it would be what?

Mr. BUTLER. I can't tell you that, Senator. I have no idea as to what number of stations the Du Mont network has available. I am inclined to think, if I am not mistaken, that the Du Mont network has broken up, and that the Du Mont people have just a small number of stations which either are owned or controlled by the Du Mont network.

I may be mistaken about that. I don't want to put that in the record as being the exact status of Du Mont.

Senator MANSFIELD. In other words, Mr. Butler, just to bring home to the American people the cost of a political campaign when you pay

for it, as the Democrats and Republicans have to, it costs in excess of $200,000 for a half hour on TV over the 3 major networks? Mr. BUTLER. That is right.

Senator MANSFIELD. What would it cost for a half hour on radio over the three major networks?

Mr. BUTLER. I would guess that the additional cost would be roughly $22,000 to $25,000 for the additional half hour for all 3 radio networks.

Senator MANSFIELD. I see.

That is all, Mr. Chairman.

Senator GORE. Senator Curtis.

Senator CURTIS. Mr. Butler, the figure you quoted as to a balance on September 1, that was your books?

Mr. BUTLER. That is right. That is the Democratic National Committee's books.

Senator CURTIS. Yes.

Do all political parties have the same system of bookkeeping?

Mr. BUTLER. Well, I don't know. I think we have the finest political bookkeeper in the country. She has been with the committee for 28 years. She is here this morning and can answer any detailed questions. I would imagine that the systems are quite similar.

I know that various examiners have said that our books have been in excellent condition and we intend to keep them that way.

Senator CURTIS. I am not questioning the mathematical accuracy of your adding-machine slips, but the point is that your books may or may not show liabilities, include liabilities, for instance, isn't that correct?

Mr. BUTLER. Well, I think that our books would show accrued liabilities. As a matter of fact, as of September 1 when we had this balance, our unpaid bills were approximately $49,000. I can give you the exact amount as we had them reflected on our books as of that date.

So that on a net basis we had a deficit of approximately $13,000, between $13,000 and $14,000 on the morning of September 1.

Senator CURTIS. Well, this is the first political campaign in 18 years that I have not been a candidate, and I would say if anyone asked me for the balance in my campaign fund at any particular date in a campaign it probably wouldn't mean anything, because the bills are rolling in on printing, contracted radio time, and what not, as well as perhaps some contributions in the mail I do not even know about.

The point I am making is, and I am sure you will agree with me, that an isolated figure at a given time doesn't mean anything, does it? Mr. BUTLER. I wouldn't say that. If that were to be accepted as being true at any given time, Senator, then I think it would be a waste of time for the committee to pursue the procedure it has in mind.

I think under ordinary accounting methods large corporations, say, like General Motors, can give you their bank balance, their inventories, their goods in process at any given time and their liabilities, too, and their net worth.

Senator CURTIS. I never saw a campaign run that way.

Mr. BUTLER. Yes, but national committees have a financing and bookkeeping system that is much different, I think, from individual candidates.

Senator CURTIS. Now, Mr. Butler, as a firm believer in a two-party system, I admire and respect you as Democratic National Chairman. I think you are a good one.

Mr. BUTLER. Thank you.

Senator CURTIS. I must confess that you haven't particularly helped this committee in its nonpartisan, unbiased pursuit of what is wrong with our election by using this forum and all these splendid gentlemen from the press, by taking advantage of this opportunity to charge without any details, that large interest groups, particularly corporations, were financing the Republican Party.

You have a right to charge that. I would just rather you would use your own forum.

Now in reference to this letter that you say that the Republican State committee of Georgia presented to the businessmen of the State, this quotation:

Your financial part in the reelection of President Eisenhower is one of the most important business investments you can make in 1956-

the Republicans believe that.

Do you believe that from the standpoint of a small-business man or a laborer or large business that its to their economic advantage for the Democrats to win?

Mr. BUTLER. Yes, I certainly do. But I don't believe that the Democratic Party is content to make its appeal to one particular special interest group in our country.

Senator CURTIS. But you have not listed all the appeals the Republicans make. Now, do you have any evidence that the committee in Georgia were coercing anybody that had business transactions with the Government or doing anything else wrong?

Mr. BUTLER. No, but I have the letter. I have a photostatic copy of the letter, in front of me, Senator Curtis. It is dated June 18, 1956, signed by Robert R. Snodgrass, finance chairman of the Republican State Central Committee of Georgia, and I would just like to read this into the record for the sake of seeing how the Republican Party is concentrating on its appeal to the special-interest groups that this administration, in our opinion, and I think

Senator CURTIS. How long is it?

Mr. BUTLER. Oh, it's 3 or 4 paragraphs. It is that long. It is just 1 page. Here it is:

How much has a Republican administration under President Eisenhower been worth to you?

Since he took office common-stock values have risen over $100 billion; net disposable income of our people, your customers, has increased more than $33 billion, dividends have increased

Senator CURTIS. Just a minute. That net disposable income of the customers, why that is the rank and file of the people, the working people.

Mr. BUTLER. This is his contention, yes.

Senator CURTIS. Yes, but it is one that you quote as his contention,

too.

Mr. BUTLER. That is right. It definitely is not true.

Senator CURTIS. No. I don't agree with that. [Laughter.] The point is just a moment ago you stated that you believe that a Democratic victory would be to the advantage of the economy of the coun

try and our people, and certainly you should grant to the Republicans the right to maintain that same contention.

Mr. BUTLER. That is right.

But without beaming all of their appeals to the special-interest groups.

Senator CURTIS. I don't think they have.

Mr. BUTLER. In other words, we are concerned in human values. What has this meant to the average citizen. What does our Government mean

Senator CURTIS. I will ask you something else.

Senator MANSFIELD. Mr. Chairman, I ask that that letter be made a part of the record.

Senator CURTIS. Put the whole letter in the record. (The letter dated June 18, 1956, is as follows:)

REPUBLICAN STATE CENTRAL COMMITTEE OF GEORGIA,

Atlanta, Ga., June 18, 1956.

Mr. T. J. CLODFELLER,

W. C. Caye & Co.,

3340 Woodie Drive NE., Atlanta, Ga.

DEAR MR. CLODFELTER: How much has a Republican administration under President Eisenhower been worth to you?

Since he took office common-stock values have risen over $100 billion; net disposable income of our people, your customers, has increased more than $33 billion; dividends have increased 35 percent; dividend credits on income taxes have saved taxpayers over $300 million annually; and many other benefits of a return to free enterprise have brought America to a prosperity peak never before known.

President Eisenhower has agreed to run again, insuring that these policies will be continued if he is elected. "If he is elected"-that phrase is all important. No election is ever "in the bag." The President is well enough to discharge the duties of his office, but he should not be called upon to wage intensive campaigns when reasonable amounts of radio, television, and other publicity will do the job. That means money, substantial amounts.

Georgia's total quota for national party use is $60,000. We need another $60,000 for work in Georgia which will be another step toward firmly establishing a second party in our State. Even ardent Democrats agree the two-party system will be to the best interests of all.

We need contributions from all businessmen. Your financial part in the reelection of President Eisenhower is one of the most important business investments you can make in 1956. One hundred and twenty thousand dollars is not a small sum, yet it is only a drop in the bucket to what he has meant to you and your business.

We need a number of $1,000 gifts, many $500, $250, and $100 checks. We are counting on one from you. Please make your check payable to Robert R. Snodgrass and send it to me in the enclosed stamped envelope today so the national committee can do intelligent campaign planning. Remember, corporations cannot contribute legally to political campaigns, so please send personal, partnership, or individually owned business checks.

Sincerely yours,

ROBERT R. SNODGRASS,
Finance Chairman.

Senator CURTIS. You state that on May 22 the vice president of a large advertising firm solicited by mail, contributions from a hundred employees of his agency.

Do you have any evidence that they would have lost their jobs if they didn't make that contribution?

Mr. BUTLER. Well, I don't know what these words mean, but I quoted directly from his letter, which I think is quite significant when he said-I just have the end of the quote:

"What it might mean to you personally if Eisenhower were not reelected." What does that mean?