the Hatch Political Activities Act of 1939, as amended. The bill which is the principal subject of these hearings, S. 636, expressly repeals the Corrupt Practices Act, and amends certain portions of the Hatch Act. The legislative history of the existing laws reveals clearly that the Congress, in enacting them, had two principal objectives in mind. First, the Congress intended to limit the amount of money which is spent in Federal election campaigns. Second, the Congress desired to make certain that the full facts concerning campaign finances were made public so that the people might know the cost of election campaigns, and so that no attempt to "buy" an election could possibly be successful. Neither of these objectives has been realized to any appreciable degree. We know that tremendous amounts of money are spent in election campaigns, and these amounts are ofttimes far in excess of what the law intends. Reporting and publicity are so hopelessly inadequate that we can do little more than guess at the actual moneys spent in any campaign. This is a lamentable state of affairs. And yet, such facts do not imply that there is any widespread violation of the provisions of the laws. Actually, these laws are so inadequate, so antiquated, and so riddled with loopholes that they invite evasion. Indeed, they are so unrealistic that they demand evasion, in many instances. The limits placed on campaign spending by these laws are so low that few candidates can campaign on what the law allows, in this day of widespread and costly television and radio and other expensive media of communication. Any legal system which make law evaders of honest men, which forces individuals willing to serve their country to resort to practices which are contrary at least to the spirit of the law, cannot and should not be tolerated in a country such as ours. Present laws are defective in four major respects: (1) They do not apply to primary elections, caucuses, or conventions; (2) they do not apply to political committees other than those which are national in character, and thus are not applicable in the case of the vast majority of political committees which are active in national elections; (3) although presumably intended to be effective, they contain no provisions to insure enforcement; the Justice Department in the past has said that they are virtually unenforcible; and (4) the limits which they impose on campaign contributions and expenditures are hopelessly unrealistic. In view of these defects, it is not surprising that suggestions for the repeal or reform of these laws have been advanced regularly. S. 636 is the latest such proposal. It has been drafted after careful study, and after serious consideration of the many well-written congressional reports and scholarly articles recommending change. It is designed to correct all the defects which I have just mentioned, as well as all others which have come to our attention. I might point out that when Congress enacted the Corrupt Practices Act in 1925, it specifically provided that the provisions of the act should not apply to primary elections, and conventions and caucuses. This was quite understandable since the law was drafted only a short time after the Supreme Court had ruled in the well-known Newberry case of Michigan that congressional control over elections did not extend to such primaries and conventions. However, 16 years after the enactment of this law, the Supreme Court, with an understanding of the essential connection between nomination and election, reversed the ་་ Newberry decision and specifically affirmed, in United States versus Classic, that Congress did have authority to regulate primary elections. Nevertheless, in the 14 years which have elapsed since the Classic decision, Congress has not accepted the mandate given it by the Court. Primary elections are, therefore, still unregulated by Federal law. Thus, the proposed bill applies specifically to primary as well as final elections and to caucuses and political conventions. It applies to all political committees which support candidates for Federal office. It establishes a system of supervision and enforcement, and it raises the ceilings on political contributions and expenditures to levels which are realistic and adequate. In many other respects, S. 636 would revise the present methods of reporting and of controlling the use of money in elections. The bill which we are considering in these hearings does not propose any revolutionary change in campaign practices. It has the same two objectives which all such legislation encompasses. It is designed to make certain that the amounts of money which are spent in connection with campaigns for Federal office are not unduly excessive, and to assure adequate publicity for all such expenditures, as well as for the sources of campaign funds. It has thus been framed with a full realization of the fact that the use of money in elections can be dangerous if excessive or if secret. It has also taken into consideration another equally important fact that election campaigns do have many many necessary and admirable results, in that they inform the American people on the vital and important issues of the day, and that they therefore increase the level of understanding of any participation in politics and the affairs of government. S. 636 is thus based on a realization of the fact that campaigns are expensive, and that satisfactory campaigns require the expenditure of large amounts of money. As long as such expenditures are in conformity with both the spirit and the letter of the law, and are used for the purposes which a campaign should really accomplish, they are advantageous and healthy. Therefore, the bill before the committee would raise the limits, so as to provide effective, but reasonable, controls and limits on such spending. I have long been disturbed by a considerable weight of public opinion which holds that campaigns are suspect, and in some way unclean. A great many people seem to feel-and understandably so that election campaigns are necessarily corrupt, and that little can be done about such conditions. For my own part, I cannot accept such a defeatist conclusion. The Chair pauses to announce the arrival of Senator Curtis. We are very glad you are here this morning. The Chair is now undertaking to read a preliminary statement on behalf of the committee, concerning the bill under consideration. Therefore, to return to my statement: I am exceedingly anxious to see the level of political morality raised, and to see the field of politics returned to the position of prestige and respect that it formerly occupied in our society. Better laws can do much to assist in such a return, I am certain. These hearings are designed to explore fully the problems which arise in connection with campaigns for Federal office, as well as to examine thoroughly the possible means of controlling such problems through corrective legislation. And in view of the widespread atti tude of suspicion and disillusionment, we must make certain that the law which we recommend to the Committee on Rules and Administration and to the Senate is sound, reasonable, and workable, and is really designed to bring about a positive and constructive revision in national election practices. Under no circumstances must we be content with a law which will continue to permit evasion, and which will thus further disillusion the American people. We have extended invitations to testify to persons from many fields who can contribute to the successful accomplishment of the task which faces this committee. We have asked the chairmen of the two major political parties to appear, and they have graciously accepted. We have extended an invitation to the Attorney General, and we hope that he will appear and give us the benefit of his views and his experience. We have requested the testimony of newspaper publishers, representatives of the radio and television industry, working journalists, lawyers, political scientists, and political leaders of both major political parties from all levels of political activity-local, State, and national. We have extended invitations to all Members of Congress, and in particular to the chairmen of the Senate and House of Representatives Republican and Democratic campaign committees. Any other interested persons and organizations are invited to communicate with the subcommittee if they wish to appear, and we will certainly give serious consideration to all such requests. We are going to try to develop fully all of the facts, so that we may undertake the revision of the laws with a real chance of success. S. 636 is the principal subject of these hearings, but we do not intend to limit these hearings only to the provisions of this bill. It is our intention, and our aim, indeed our hope, to uncover all of the important facts which relate to the matter of campaigning, so that we can thoroughly understand the problems which candidates and political committees face, and so that we eventually can recommend to the Committee on Rules and Administration and to the Senate a bill which will accomplish the objectives we all seek, and which will, at the same time, allow the parties and the candidates to carry on vigorous and complete campaigns. We do not intend to draft a law which will further complicate the tasks which our parties face. We are not inclined to penalize the political calling. Some of us feel that politics is one of the highest human endeavors, and I believe that we should assist the parties and candidates for elective Federal office in their efforts to inform the people on the state of this Nation, subject only to reasonable requirements which will prevent the abuses which have occurred in the past. This bill is, in a way, a point of departure for these hearings. I hope that the witnesses who will appear before this committee will state frankly their opinions of the provisions of this bill. I for one am not wedded to any of the detailed specifications of the bill, but I am thoroughly committed only to its objectives. We have no vanity of authorship concerning the legislation which is presently before us, nor do we consider it to be the perfect solution. I believe that the hearings will reveal the defects in the bill, where such exist, and will disclose alternatives which may be more satisfactory in solving the problems in the field which we are studying. I believe that the matter which is before the committee is, and should be, a bipartisan and a nonpartisan problem. I sincerely hope that no partisan loyalties will arise which will complicate the task of the committee. I realize full well that the problem which we are studying is one which can be utilized for partisan purposes, and I am sure the members of the subcommittee will join to see that such does not occur. The members of the subcommittee are united in their approach to the problem at hand, and I am sure that these hearings will proceed so far as possible in a nonpartisan fashion. (The bill referred to, S. 636, follows :) [S. 636, 84th Cong., 1st sess.] A BILL To revise the Federal election laws, to prevent corrupt practices in Federal elections, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Federal Elections Act of 1955". TITLE I-TABLE OF CONTENTS AND DEFINITIONS TABLE OF CONTENTS SEC. 101. This Act is divided into titles and sections according to the following table of contents: TABLE OF CONTENTS TITLE I-TABLE OF CONTENTS AND DEFINITIONS Sec. 101. Table of contents. TITLE II-CORRUPT PRACTICES Sec. 201. Organization of political committees. Sec. 202. Statements by treasurer. Sec. 203. Statements by others than political committees. Sec. 205. Sec. 206. Filing with the clerk of the United States district court. Sec. 207. Duties of Clerk of the House and Secretary of the Senate. Sec. 210. Penalties. Sec. 211. Expenses of election contests. Sec. 212. State laws not affected. Sec. 213. Partial invalidity. Sec. 214. Repeal of the Federal Corrupt Practices Act. TITLE III-AMENDMENTS TO CRIMINAL CODE Sec. 301. Amendment of definitions applicable to Criminal Code provisions. Sec. 302. Limitations on financial aid to candidates. Sec. 303. Maximum contributions to and expenditures by interstate political committees. DEFINITIONS SEC. 102. As used in this Act (1) The term "election" includes a general or special election, and includes a primary election (including a preferential primary) and a convention of a political party or a caucus held for the purpose of nominating candidates; (2) The term "candidate" means an individual on whose behalf contributions are received or expenditures made in support of his candidacy, or whose name is presented, at an election for nomination for, or election as, President or Vice President, or Senator or Representative in, or Delegate or Resident Commissioner to, the Congress of the United States, whether or not such individual is elected; (3) The term "political committee" includes any committee, association, or organization which accepts contributions or makes expenditures for the purpose of influencing or attempting to influence in any manner whatsoever the election of candidates or Presidential or Vice Presidential electors, and shall be interpreted to include all committees, associations, or organizations, whether political or nonpolitical in character, which influence or attempt to influence the result of an election by the preparation and/or dissemination of educational material; (4) The term "contribution" includes a gift, subscription, loan, subvention, advance, or deposit, or money, or anything of value, and includes a contract, promise, or agreement, whether or not legally enforceable, to make a contribution; (5) The term "expenditure" includes a payment, distribution, loan, subvention, advance, deposit, or gift, of money or anything of value, and includes a contract, promise, or agreement, whether or not legally enforceable, to make an expenditure; (6) The term "person" includes an individual, partnership, committee, association, corporation, and any other organization or group of persons; and (7) The term "State" includes any Territory and possession of the United States. TITLE II-CORRUPT PRACTICES ORGANIZATION OF POLITICAL COMMITTEES SEC. 201. (a) (1) No contribution shall be accepted, and no expenditure made, by or on behalf of a political committee for the purpose of supporting the candidacy of a candidate until the candidate has authorized in writing the political committee to support his candidacy and has filed a copy of such authorization with the Clerk of the House of Representatives. In the case of political committees supporting a candidate for President, Vice President, or Senator, such authorization shall also be filed with the Secretary of the Senate. This prohibition shall not be interpreted to prevent the acceptance of contributions, and the making of expenditures, by or on behalf of a political committee for the purpose of supporting the candidacy of a candidate for nomination for President or Vice President. (2) Upon the filing by a candidate of a withdrawal of authorization with the Clerk of the House of Representatives (and, in the case of candidates for President, Vice President, or Senator, with the Secretary of the Senate), and upon the receipt of notice of withdrawal of authorization by the treasurer of a political committee, the political committee shall be prohibited from receiving further contributions or making further expenditures on behalf of the candidate unless a new authorization is filed. No (b) Every political committee shall have a chairman and a treasurer. contribution shall be accepted, and no expenditure made, by or on behalf of a political committee for the purpose of influencing an election until such chairman and treasurer have been chosen. No person other than the treasurer shall make an expenditure for or on behalf of a political committee. (c) Every person who receives a contribution for a political committee shall, on demand of the treasurer, and in any event within five days after the receipt of such contribution, render to the treasurer a detailed account thereof, including the name and address of the person making such contribution, and the date on which received. (d) It shall be the duty of the treasurer of a political committee to keep a detailed and exact account of (1) all contributions made to or for such committee; (2) the name and address of every person making any such contribution, and the date thereof; (3) all expenditures made by or on behalf of such committee; and (4) the name and address of every person to whom any such expenditure is made, and the date thereof. (e) It shall be the duty of the treasurer to obtain and keep a receipted bill, stating the particulars, for every expenditure by or on behalf of a political committee exceeding $10 in amount. The treasurer shall preserve all receipted bills and accounts required to be kept by this section for a period of at least three years from the date of the filing of the statement containing such items. STATEMENT BY TREASURER SEC. 202. (a) The treasurer of a political committee shall file with the Clerk of the House of Representatives, on a form to be prescribed by him, between the 1st and 5th days of March, June, and September, in each year, and also between the tenth and fifteenth days, and on the fifth day, next preceding, and also within thirty days after the date on which an election is to be held, with respect to which contributions were received or expenditures made by such committee, and |