Only one person reported an individual expenditure to the Clerk of the House as required by section 306 of the Federal Corrupt Practices Act in cases where a sum aggregating $50 or more is spent for the purpose of influencing in two or more States the election of Federal candidates.

Copy inserted over the signature of the International Latex Corporation, over the signature of the New Bedford (Mass.) Standard-Times, and over the signature of Hearst Publications was, in language, nonpartisan; in effect, it appeared to support the position, if not the candidacies, of opposing candidates. In the case of International Latex, the copy was favorable in tone to the Democratic candidates; in the other cases, to the Republican candidates.

Paid display newspaper advertising was found in five States, sponsored by six minor parties: American Labor Party (whose nominees were Roosevelt, Truman, Wagner); America First Party; Industrial Government Party; Liberal Party (whose nominees were Roosevelt, Truman, Wagner); National Prohibition Party; Socialist Labor Party; Socialist Party.

Much of the paid display newspaper advertising already discussed was, of course, in behalf of State or local slates as well as the national party slates. A considerable lineage was found devoted wholly to advancing the candidacy of senatorial candidates.

GENERAL COMMENT

While a 20 percent sampling of political newspaper advertisements over a period of more than 2 months is remunerative, there are some errors which must be guarded against. Total clippings of all daily newspapers would not, for instance, yield five times as many State, county, city, and independent committees. The samples used came from all States; it can be expected that the greatest increase in the numbers of groups found sponsoring political advertising would be on the county and city levels.

Neither can it be assumed that all unsigned advertising was an effort to avoid public responsibility. Some States have laws requiring that certain statements as to sponsorship be made on all advertising; in the remaining States, political committees are governed only by their own standards or by public opinion. One must guard against assuming that all "independent committees" which signed advertising actually existed when the copy was inserted; or that advertising appearing over the names of bona fide organizations or of individuals actually was paid for by the signers; or that all "independent committees" are independent.

Radio broadcasting plays an increasingly important part in the contemporary technique of political campaigning. Broadcasting, a trade magazine, in its issue of November 13, 1944, included an estimate of a total of $1,661,990 as the cost of radio broadcasting time purchased by the national committees of the major parties and that the networks sacrificed $2,000,000 to provide news broadcasts in 32 hours of election coverage on and following election day. Broadcasting reports that the C. E. Hooper, Inc., audience index placed the audience at 50.3 percent, a higher figure than for D-day.

Informal complaints were received by the committee regarding radio broadcasts; the Federal Communications Commission received more

specific complaints. As a result, the Commission adopted a rule requiring that the station broadcasting any sponsored program must make an announcement that the program is sponsored, paid for, or furnished, either in whole or in part; that a similar announcement must be made in regard to any political program or to any program involving controversial issues; and that the announcement will fully disclose the individual or organization sponsoring the broadcast.

K. MINOR PARTIES

Out of the soil of economic discontent or political frustration the minor parties of protest have erupted from time to time in American history; but somehow they have never taken root.

Since the minor party organizations are, however, phenomena existing in the political field, it was felt that information should be requested from them by questionnaire. From two, the American National Socialist Party of New York and the American Commonwealth Party of Chicago, questionnaires were returned unclaimed.

Replies were received from the Socialists, America First, Prohibitionists, the Progressives, the American Labor Party, American Liberal Party, and the Non-Partisan League of North Dakota. The questionnaire sent to the Democratic-Farmer-Labor State central committee in Minneapolis was returned with the notation that it is now a part of the regular Democratic organization.

America First Party.

Headquarters: Detroit, Mich.; Gerald L. K. Smith, director, Detroit, Mich.; Bernard A. Doman, secretary and treasurer, Detroit, Mich.; unaffiliated; permanent organization; committee to organize party formed in January 1943, and consummated as legal entity August 29, 1944; purpose is "to consummate the formation of a new political party in every State in the Union, which will support principles set forth in the platform"; supported Gerald L. K. Smith for President, Harry Romer for Vice President; "We have no members, only adherents"; responsibility for establishing and executing policy is vested in Gerald L. K. Smith; funds raised by contributions from adherents; no fund-raising contract; cost estimated at less than 10 percent; receipts January 1, 1944, to September 1, 1944, $41,300.85; expenditures, $39,370.65.

American Labor Party.

Headquarters: New York, N. Y.; Sidney Hillman, chairman; Hyman Blumberg, secretary; Harry J. Chapman, treasurer; Benjamin Fielding, executive secretary; adopted Democratic candidates as own candidates; receipts, $58,194.69; expenditures, $49,577.35; liabilities, $28,472.95.

Liberal Party.

Headquarters: New York, N. Y.; Dr. John L. Childs, chairman State executive committee, New York; Joseph V. O'Leary, secretary, New York,; Harry Uviller, treasurer, New York; branch offices in the Bronx; unaffiliated; organized at a convention May 19-20, 1944; approximately 10,000 members; party nominees for President, Vice President, and Senator were the same as for the Democratic Party; receipts to September 1, 1944, were $38,760, being $3,760 contributions and loan, $35,000; expenditures to September 1, 1944, $37,897.27; appeals through literature, public meetings, radio programs, newspaper advertisements, car, and subway advertisements.

Progressive State Central Committee.

Headquarters: Madison, Wis.; Glenn D. Roberts, chairman; Adelaide Woelfel, secretary; central body of the Progressive Party of Wisconsin, set up pursuant to statute; unaffiliated; Progressive Party was organized in 1934, its committee came into being that year "and will continue as long as the party is in existence"; in 1944 the party had a full State slate placed no Presidential or Vice Presidential nominee on the ticket, and made no endorsements; the limited quantity of campaign

literature was critical of both major parties; total receipts of $4,988.39 and expenditures of $7,676.86 during year 1944.

Prohibition National Committee.

Headquarters: Chicago, Ill.; Edward E. Blake, Oak Park, Ill., chairman; F. W. Lough, Winona Lake, Ind., vice chairman; James A. W. Killip, Philadelphia, Pa., secretary; Charles L. Hill, Rosendale, Wis., secretary; carries on the election campaign activities of the Prohibition Party which originated in 1869; permanent; supported own party nominees, Claude A. Watson, of California, for President and Andrew Johnson, of Kentucky, for Vice President; receipts for January 1, 1944, to March 31, 1944, as filed with Clerk of the House were $11,652.68 and $14,241.97, respectively; the party appears delinquent for having failed to file later statements with the Clerk of the House covering subsequent 1944 campaign expenditures.

Socialist Labor Party.

Headquarters: New York, N. Y.; Arnold Peterson, national secretary; organized in 1890; independent; supported Edward A. Teichert, Socialist Labor nominee, for President; Arla A. Albaugh, Socialist Labor nominee, for Vice President nominated at twenty-first national convention, April 29 to May 2, 1944, in New York; "supports its own candidates exclusively, with no exceptions, just at present;" receipts to December 14, 1944, $74,901.93 and expenditures, $60,237.33.

Socialist Party.

Headquarters: New York, N. Y.; Harry Fleischmann, national secretary; sponsored Norman Thomas for President and Darlington Hoopes for Vice President; receipts, $48,284.96; of this amount, $9,618.25 was received from contributions of $100 or more and $38,666.71 in amounts of less than $100; expenditures, $43,222.61, mostly for literature, salaries, and campaign travel expenses.

III. GENERAL OBSERVATIONS ON REPORTS OF RECEIPTS AND EXPENDITURES

A. PRESENT METHODS OF REPORTING

Examination of statements of receipts and expenditures filed by political committees with the Clerk of the House leads to two basic observations. First, there is a decided lack of uniformity, leading to confusion and indigestibility for the publicity purpose underlying the Federal Corrupt Practices Act. Second, under the present system the Clerk of the House is merely the custodian of the statements with no authority other than to acknowledge receipt and to preserve them for a period of 2 years.

If an approved form for such statements had been authorized to be furnished by the Clerk's office, the information would have been made more comprehensible. In the absence of an approved form to be filed by political committees, difficulty was experienced in obtaining the desired information for purposes of prompt publicity and for use by this committee in preparing its report for the Senate. It is certain that the public and interested news reporters would be repelled from inquiry by forbidding and unnecessarily complicated nature of many of the statements filed.

Two of the major difficulties experienced by the committee staff in preparing the data set forth in appendix II were:

1. Frequently the statements listed every single contributor, not merely those giving $100 or more as required in the law. This caused needless effort and consumed much time in thumbing through statements in order to select the names and addresses of those contributing the amount sought to be publicized by the statute, leaving the very definite impression in some cases that

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the deluge of detailed small contributions was designed to discourage scrutiny to discover the large contributors. In many cases contributors were listed as "anonymous."

2. Often the reports filed were not cumulative for the calendar year, necessitating the examination of all previous reports filed for the year. Since the reports are separately docketed in the Clerk's office, this involved considerable labor, and again would discourage the average person from inquiry.

Section 307 of the Federal Corrupt Practices Act requires every candidate for Senator to file with the Secretary of the Senate a correct and itemized account of each contribution received by him or by any person for him with his knowledge and consent, in aid or support of his candidacy for election; and a correct and itemized statement of each expenditure made by him or by any person for him with his knowledge or consent in aid or support of his candidacy for election. Many candidates have not filed statements, though it should be noted that those delinquent in this regard were in every instance defeated candidates. The Secretary of the Senate has developed a form for reporting of receipts and expenditures by senatorial candidates, and this has made for uniformity and intelligibility.

It is to be noted that neither the Secretary of the Senate nor the Clerk of the House is given the power or responsibility of following up candidates and political committees respectively where there has been a failure to file a report as required under the law. Nor has either official of the Congress been given the power or authority to require correction of any errors or omissions in statements which are filed.

According to a leading authority on this subject, Dr. James K. Pollock:

The statements that are filed * * * do not serve the purposes of publicity * * * the statements * * * are frequently unintelligible. There is little question but that they are sad commentaries on public accounting. When one is anxious to ascertain merely the total sums raised and expended by party committees, it would seem that this should be an easy task. But it is not so easy as one might think, because many difficulties stand in the way of any person who would do just this. No two statements are alike; there is no uniform system, and hence one must spend weary hours learning the methods of accounting used by each committee. Unless one devotes much time and study to each report, one cannot be sure of having obtained the correct figures. Sometimes, in addition to a study of the accounts, it is necessary to direct inquiries to the persons who drew up the report. Under such circumstances, it can scarcely be said that the law secures proper publicity, because the figures, in order to be useful, must be easily obtainable. Anybody should be able to learn the figures without resorting to outside inquiry.

B. NATIONAL PARTIES

An attempt has been made to develop comparative data on the overall contributions and expenditures by the two major parties in connection with the 1944 national campaign. This necessarily involves going beyond the mere examination of the contributions and expenditures of the official national party committees. State party committees and independent groups operating both interstate and intrastate have been included in cases where it appeared that a substantial portion of their funds were spent on behalf of the national ticket. It should be noted in connection with the inclusion of organizations other than the official national party committees that some of their

expenditures are, no doubt, directed to the support of candidates and issues of purely local concern.

Set forth below are tables summarizing the totals of contributions to and expenditures by Democratic and Republican organizations. These figures do not include amounts received and expended by candidates for nomination or election to the 435 seats in the United States House of Representatives or committees acting wholly on their behalf since this matter was specifically the province of the House Campaign Expenditures Committee and the Senate resolution creating this committee did not empower it to investigate these expenditures. The receipts and expenditures of county and local committees are included only in a few instances where county and local committees have filed reports with the Clerk of the House, or where by virtue of their substantial expenditures it appeared that they directed their efforts to influencing the national election.

The outstanding fact disclosed by these tables is that the Democratic and Republican Parties have been forced to depend increasingly upon organizations other than the official national party committees as agencies for conducting the national campaign. While the over-all figures are far in excess of the $3,000,000 limitation in the Hatch Act on expenditure by a political committee, this is not surprising. It is a fact that single business enterprises spend in 1 year sums far in excess of $3,000,000 for advertising their commercial products. The extensive presentation of issues and candidates in a national campaign is basic to successful operation of the democratic process and necessarily requires expenditures of a sum greater than $3,000,000.

If it were the intention of the Hatch Act to limit over-all expenditures on behalf of a national party ticket to $3,000,000 that intention has not worked out in practice, since both parties spent more than this amount in 1940 and 1944. If an over-all limitation were not intended, the provision has been only bad in its effect, for it has undermined the publicity feature of Federal corrupt-practices legislation by encouraging dispersion of political fund raising and expending.