National Affairs: Rat Hunt

The Senate Committee on Campaign Expenditures repaired to Washington, D. C., there to continue its hunt, started a fortnight ago in Chicago, (TIME, Oct. 27), for certain large rats smelled in the Republican Campaign by Third Party Candidate LaFollette. While in full cry, the rat-hunters nosed also at various non-Republican scents and holes.

Democratic Testimony. The week previous, the Committee had taken Republican and Third Party testimony. To round out its survey, the Committee, last week, heard the testimony of Clem L. Shaver, Chairman, and James W. Gerard, Treasurer, of the Democratic National Committee. These gentlemen averred that their total budget added into the neighborhood of $750,000 of which $549,000 had been contributed by some 4,000 persons.

Said Chairman Borah of the Senate Committee: “I saw a statement . . . that you contemplated an expediture of $1,500,000.”

Replied Mr. Gerard: “I suppose if they gave us $1,500,000, we would accept it.”

Forthwith the Committee adjourned for the day.

Witnesses. Came four subpoenaed Pennsylvanians before the Committee to bear witness to Republican finance in their state. Came also one T. V. O’Connor, Chairman of the U. S. Shipping Board, subpoenaed by the Committee out of curiosity aroused by a statement of his that Soviet Russian money had filtered into the U. S. via Mexico to bolster the LaFollette candidacy.

Mr. O’Connor was heard first. He had to admit that he was indebted to Dame Rumor for his information. Said he: “I believe it in my own heart, though I have no way to prove it.”He begged “a few days”to find proof.

Then the Pennsylvanians. One Joseph R. Grundy of Bristol, Pa., manufacturer of woolens, told how he and one W. L. Mellon of Pittsburgh had canvassed Pennsylvania’s 81 counties by letters “to everybody, irrespective of race, creed, color and previous condition of servitude.”

“That,”said Senator Caraway, “would include practically everybody in Pennsylvania.”

These letters had urged upon their recipients a duty to contribute funds in token of their “gratitude.”Another term used was ” enlightened self-interest.”These terms had puzzled the Committee, drawn fire from Democrats and Progressives.

Mr. Grundy explained: “Gratitude for wonderful opportunities this country has enjoyed through the beneficent legislation of the Republican Party.”

The rat-hunters had been asked to sniff about for two Republican funds in addition to the regular Party budget —one fund the care of bankers, the other of manufacturers and business men. Mr. Grundy vowed ignorance of such funds. So did the other three Pennsylvanians, one Nathan T. Folwell (dress goods), Samuel M. Vauclain (Baldwin locomotives), Edward T. Stotesbury (banks) ; but Mr. Vauclain became involved in an explanation of a $10,000 contribution which his company had made to an organization (The American Economic Institute) whose frankly admitted aim was ” to protect the railroads against improper legislation.”

Asked Senator Caraway: “Then capital has got a perfect right to hire people to go out and manufacture sentiment; is that your view?”

Mr. Vauclain: “Yes, Sir!”

Sitting with the Committee were Lawyers Frank P. Walsh and Samuel Untermyer, representatives of Senator LaFollette. Lawyer Walsh cut in:

“If you knew this money was to be used to defeat Senator LaFollette in doubtful states, would you object?”

Mr. Vauclain: “I would object.”

Further interrogated, Mr. Vauclain made it clear that he was a million aire, that he had lent his name to Mr. Grundy’s fund-raising ccmmittee for its potent influence.

Lawyer Walsh: “You always win — money talks!”

Mr. Vauclain: “Money doesn’t talk, Righteousness talks.”

More Witnesses. Another fine rat-hunting day dawned. The Committee received a financial bulletin from Republican National Treasurer William V. Hodges ($503,000 collected in five days since Oct. 10; grand total, $2,200,000; $800,000 to go in order to reach the $3,000,000 budget) ; received also a request from thoroughgoing Lawyer Untermyer that additional Republicans be subpenaed. Lawyer Untermyer had reasoned thus : The names of such men as Elbert H. Gary, J. P. Morgan, the Rockefellers and other “recognized Republicans”do not appear on the list of donors to date. From this, we may readily deduce that there is a hidden fund. Go to! Let us quiz the Republican State Chairmen of New York, New Jersey, Ohio, Illinois.

The Committee granted Lawyer Untermyer’s request.

Next, Senator Thomas J. Walsh of Montana, Teapot Dome inquisitor, telegraphed to say that he feared $100,000 was going to Montana to be used against him in his fight for reelection and that this money would not pass through the hands of the National or State Republican Committees. Another scent! Off put the patient hunters once more, Senator Caraway barking long and loudly at Charles D. Hilles, New York representative on the National Committee who was occupying the witness seat that day.

Mr. Hilles guarded his answers, infuriated Senator Caraway, swore he knew of no grounds for Senator Walsh’s fear.

After issuing numerous other subpoenaes ait the request of Lawyers Walsh and Untermyer, the committee split— Senators Borah and Shipstead returning to Chicago to take additional testimony, Senators Caraway and Bayard remaining in Washington for a like purpose.