TO REGULATEJ THE COLLECTION AND EXPENDITURE OF MONEY, OTHER
THAN BY THE GOVERNMENT OF THE UNITED STATES OR BY ITS
AUTHORITY, FOR THE USE AND BENEFIT OF THE ARMED FORCES
OF THE UNITED STATES AND OF ITS ALLIES, AND ESPECIALLY
OF FRANCE, GREAT BRITAIN, ITALY, BELGIUM, SERBIA,
GREECE, AND MONTENEGRO, OR FOR ANY AUXILIARY
ORGANIZATIONS OF SAID GOVERNMENTS, MAIN-
TAINED AND OPERATED FOR THE USE AND
BENEFIT OF SUCH ARMED FORCES

COMMITTEE ON MILITARY AFFAIRS.

GEORGE E. CHAMBERLAIN, of Oregon, Chairman.

GILBERT M. HITCHCOCK, of Nebraska.
DUNCAN U. FLETCHER, of Florida.
HENRY L. MYERS, of Montana.
CHARLES S. THOMAS, of Colorado.
MORRIS SHEPPARD, of Texas.
J. C. W. BECKHAM, of Kentucky.
WILLIAM F. KIRBY, of Arkansas.
JAMES A. REED, of Missouri.
KENNETH D. MCKELLAR, of Tennessee.
HOKE SMITH, of Georgia.

FRANCIS E. WARREN, of Wyoming.
JOHN W. WEEKS, of Massachusetts.
JAMES W. WADSWORTH, JR., of New York.
HOWARD SUTHERLAND, of West Virginia.
HARRY S. NEW, of Indiana.

JOSEPH S. FRELINGHUYSEN, of New Jersey.
HIRAM W. JOHNSON, of California.
PHILANDER C. KNOX, of Pennsylvania.

REGULATING COLLECTION OF MONEY.

SATURDAY, JANUARY 25, 1919.

UNITED STATES SENATE,
COMMITTEE ON MILITARY AFFAIRS,

Washington, D. C.

The committee met at 10.30 o'clock a. m. in the committee room, Capitol, Senator George E. Chamberlain presiding.

The CHAIRMAN. The committee has met this morning to have a hearing on the bill (S. 4972) to regulate the collection and expenditure of money, other than by the Government of the United States or by its authority, for the use and benefit of the armed forces of the United States and of its allies, and especially of France, Great Britain, Italy, Belgium, Serbia, Greece, and Montenegro, or for any auxiliary organizations of said Governments maintained and operated for the use and benefit of such armed forces.

Congressman Jerome F. Donovan, of New York, being present, and other gentlemen, who desire to make some statements in reference to the matter.

Mr. Donovan, the committee will be pleased to hear you.

STATEMENT OF HON. JEROME F. DONOVAN, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW YORK.

Mr. DONOVAN. Mr. Chairman, Senator Ashurst has just called up my office and said it was his intention to appear this morning before the committee. He will be here, probably later in the morning, but he asked that I go ahead and make the introductory statement relative to the subject matter in hand.

This bill is a bill that is being projected and hoped of passage owing to the conditions which prevailed by reason of the experience that the district attorney's office, under District Attorney Swan, in New York County, has had relative to war charities. A great many of the welfare people in the city, as through the country, gave their services and means toward charitable objects for the benefit of American forces here and overseas, and vast sums of money were collected for that purpose. There were many organizations incorporated and drives were made for the collection of funds, and the success of the drives was marvelous, the collections amounting to millions of dollars. It soon developed that many people were engaged in this enterprise for personal gain and profit, through misrepresentation and fraud. Judge Swan, the district attorney of New York County. was a recipient of many complaints from donors that, in their opinion, funds were being collected through fraud and not being appro

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