committee to investigate, the said committee shall investigate such charges as fully as though it were acting upon its own motion, unless, after a hearing upon such complaint, the committee shall find that the allegations in said complaint are immaterial or untrue. That is the sum and substance of the duty and responsibility that rests upon this committee in the conduct of their investigations in this as well as in other States. At the outset I want the record to contain reports made on primary expenditures by certain candidates. First that of Morton Alexander, under date of August 7, 1930: (The statement referred to is as follows:) Senator GERALD P. NYE, Washington, D. C. AUGUST 7, 1930. DEAR SENATOK NYE: As you know (or maybe you didn't), I am running on the Socialist ticket for United States Senator in Colorado, and there are rumors going around that some of us candidates have been spending too much money and that you are coming out here to investigate us. I was afraid we'd have some trouble of this kind, and so from the beginning I planned to keep my own expenses down to lowest notch, consistent, of course, with modern business methods in buying Senatorships. That is to say, I didn't mean to exceed the "saturation point," as our automobile manufacturers say. I resolved that under no circumstances would I allow my ambition to get away with me, as Mrs. McCormick did. Confidentially, the way crops are I just couldn't think of parting with $250,000 for a $60,000 senatorial toga at this time-even though the deal might be perfectly legal and all that but with wheat at 60 cents a bushel and all our creeks, rivers, and milch cows going dry it seems that paying $250,000 apiece for Senators is downright extravagance. Well, anyway, Senator, I am not going to put you and your investigating committee to all the bother of coming out here and ransacking my ranch to find out how much money I have been spending in this campaign. I am going to make a clean breast of it all-tell the truth, the whole truth, and nothing but the truth, be the consequences what they may. Sink or swim, survive or perish, here is a true statement of my campaign expenditures to date: Car fare from my ranch to the convention_ Total____ $0.20 1.00 .20 1.40 I see my opponents on the Democrat and Republican tickets all say they are glad to have the investigation come. (Between you and me they are about as glad as a bootlegger is when the prohibition officer knocks on his door.) Also they all say they haven't been spending any money, hardly at all-but they don't get down to figures. I do. I have laid my cards on the table. Honestly I wish the investigators you are sending had stayed at home-not because I am afraid of having something found out on me--but because it must cost Uncle Sam a heap of money to send these investigators around on the trail of every millionaire who is trying to buy his way into the United States Senate and besides it doesn't seem to do any good-the more investigations we have, the more millionaire Senators we have at least that's the way it seems to work in Colorado. Anyway, this is a free country, and if an honest millionaire can't run for Senator (and incidentally distribute a few hundred thousand dollars among his friends, to make times better, and save us from the Bolsheviks) I think it's time we traded off the Statue of Liberty to Russia for a few more boatloads of pulpwood or manganese. Talk about the land of the free. Shucks. MORTON ALEXANDER. P. S.-I suppose I should have had this statement sworn to-but that would have necessitated me walking 2 miles to see the justice of the peace and then it would have cost me 25 cents, which would have showed up that much worse on my statement of campaign expenses. So I hope you will excuse this oversight. The CHAIRMAN. Next I will ask the reporter to make a part of the record the statement of James A. Marsh, under date of September 19, 1930. (The statement referred to is as follows:) Hon. GERALD P. NYE, Chairman. SEPTEMBER 18, 1930. DEAR SENATOR NYE: Replying to your letter of September 10 inquiring as to my expenditures in my campaign for the nomination for the United States Senate, I advise in response to your questions as follows: The total amount of my expenditures in my campaign for the nomination was $2,031.03. I received no contribution whatever from any one. The above-stated amount was expended by me and on my behalf as follows, according to the best classification I am able to make: For traveling expenses. For printing and stationery. For mailing and distribution of correspondence and literature. For office expenses and clerical services.... For advertising---. For radio services__ For miscellaneous meetings, telegrams, etc.. Total amount______ $179.65 426. 40 297.59 234. 35 687.29 155.00 50.75 2, 031. 03 One of your representatives called on me recently and I believe I can not supply any information in addition to what I gave him at the time. I will give my cooperation to you at all times to assist you in any way I can in the performance of the duty enjoined upon you by the Senate resolution. Very sincerely yours, JAMES A. MARSH. The CHAIRMAN. Next I ask the reporter to make a part of the record the statement of Morrison Shafroth. (The statement referred to is as follows:) Senator GERALD P. NYE, United States Senate, Washington, D. C. SEPTEMBER 25, 1930. DEAR SENATOR NYE: I am inclosing you a copy of a report which I filed in the office of the secretary of state under Colorado law, detailing my expenditures in the recent primary campaign. Since filing this report I have discovered bills aggregating about $35 for printing and publicity which were overlooked and not paid prior to the filing of the report. As you know, the Colorado law limits expenditures by candidates themselves and by individuals or organizations in their behalf to a total from all sources of $5.000. Of course no candidate expends over $5,000 himself in the campaign. Any expenditures in excess of that amount are made by individuals or organizations which are supporting him in his campaign, but under the Colorado law that is as much a violation of the law as if the candidate had expended the money himself. There is no limitation under the State law as to the amount that can be expended in the general election. In primary elections, aside from frequent disregard of the law limiting expenditures to $5,000, the principal source of corruption seems to me to lie in the payment of money ostensibly for political work but actually for political influence and votes. For instance, I believe it to be a quite customary practice prior to State assemblies to pay to some of the district captains such sums of money as they may demand. These district captains under the system of apportionment have the appointment of eight or nine delegates to the State assembly, and so in effect control that many votes in the State assembly, and of necessity when they are paid money by one candidate or another are expected to deliver those votes. It seems pretty clear under these circumstances that they are paid for the votes and not for any work they may do. The same thing exists to a certain extent in the primary itself where party officers such as district captains and precinct committeemen and committeewomen accept money from one candidate or the other. Whatever may be the stated reason for giving the money, the actual reason that these people are employed instead of others is because of their political influence. I set this forth rather as an illustration of the problem to be met than as a special commentary on this campaign as distinguished from others. The limitation of $5.000 under the Colorado statute is certainly ample for any candidate to fairly present his position to the people, but when large sums of money are expended in behalf of some candidate and other candidates observe the limit prescribed by law, it can readily be seen that the law observing candidates suffer a severe handicap. I feel that the committee can be of great service-not as a means of punishing infractions of the law after they have been made-but primarily in preventing infractions of that law. In order to prevent these infractions, however, it seems to me that you must necessarily make perfectly clear in advance of each primary election that there is going to be a thorough examination into all expenditures in behalf of candidates, and to really be effective it seems to me that the examination of candidates and their members should be held immediately before the primary rather than after it. When held before, the punishment to candidates for violating the law or using doubtful methods is meted out by the people themselves at the polls. If you wait until after the election, any action taken must be taken by the Senate itself and you immediately run into the very complicated problem of just how gross violations of the law must be before the Senate will step in and refuse to seat a Senator chosen by the electors of the State. Certainly, for every infraction of the law the Senate does not, and can not very well, refuse to seat the man elected. It has only been in cases of gross violations that the Senate has ever acted or ever will act, and as to what constitutes a gross violation is a matter on which opinion in the Senate itself differs very materially. Surely if you can put the facts before the people and let them have a chance to act on it themselves, you are taking much more effective steps toward preventing over expenditure and corrupt expenditure than you are by levying it to the tedious process of Senate action after the fait accompli. Of course an investigation after the primary and before the general election is better than no investigation at all, but such an investigation would be small comfort for those in a primary who have carefully observed the law if they have been defeated by another who has not observed the law. It therefore seems that such action as you took when you went into Nebraska to assist Senator Norris is the unfair fight that was being made against him was the logical and proper method to be followed not only in Senator Norris's case but in all cases where a primary election is involved. In earnestly hope that your committee will continue your investigations and will eventually make it practically certain that anyone who violates the law will be exposed to the public prior to the primary or general election at which he is a candidate. In such exposures, in my judgment, lies the greatest function of your committee. If I can be of any assistance to you in any investigations in Colorado, you may depend on me to do anything I can. My own report, of course, including all expenditures made by any organizations or individuals working in my behalf as well as my own expenditures. I had no organization save a small group known as the Shafroth volunteers which refused to accept any contributions and I financed it myself, including all costs and expenditures in my statement. Sincerely yours, MORRISON SHAFROTH. Affidavit of Morrison Shafroth, candidate for office of United States Senator on the Democratic ticket, voted for in the primary election in Colorado on the 9th day of September, A. D. 1930 Majestic Multigraphers, postage.. 12 18 Stamps. Chronicle News, part payment on advertisement for Legion Convention. Denver Labor Bulletin, advertisement. 40.00 15.00 56.05 15.00 2.25 121.75 12.00 15.00 10. 00 10.00 3.00 Majestic Multigraphers, postage. 36.50 29 Rocky Mountain News, advertisement. 3.50 30 1.80 Sept. 3 M. A. Sanchez (2,000 copies Allied Taxpayer's News). 17.50 Aug. 28 30 5.00 3.00 Earl C. Kams, political advertisement in Pueblo Labor Day program. 4. 06 10.00 10 Rocky Mountain News, advertisement. 10 Connor Advertising Agency, for ads in 10 papers.. Colorado Labor Advocate ad. American publicity and sales. Advertisement, Castle Rock.. Miscellaneous and traveling expenses.. Telephone and telegraph.... 167.55 27.00 7.30 3.50 2.50 10.35 50.00 94.34 25.00 2. 10 5.00 5.60 3. 10 17.50 250.00 25.00 25.00 113.00 9.65 17.50 87.80 25.00 70.77 2, 641. 16 To the best of my knowledge, information, and belief, the above statement includes all expenditures by me or in my behalf by any organization or individuals in my primary campaign for the United States Senate. I hired no political workers and received no contributions. The CHAIRMAN. Next I ask the reporter to make part of the record the statement of George H. Shaw, under date of September 17, 1930. (The statement referred to is as follows:) Hon. GERALD P. NYE, Chairman, Palmer House Hotel, Chicago, Ill. SEPTEMBER 17, 1930. DEAR SENATOR NYE: In response to the inquiries contained in your letter of September 10 I submit the following. I have spent in my campaign for the Senate nomination in the recent primary election the sum of $4,729.85. I have received no contributions. The amount of expenditures-$4,879.85-includes the following: To State central committee_ Salaries__. Subscriptions and advertising. Telephone and telegraph-- Stationery and office supplies---. Miscellaneous items-traveling expense, subsistence, etc‒‒‒‒‒‒ $150.00 1, 021. 35 462. 77 395.80 189.36 260.57 2, 400.00 The Shaw headquarters committee is an organization which has operated in my behalf but independently of me. A. W. Hahn is secretary of this committee. His address is 233 Brown Palace Hotel, Denver, Colo. The following organizations, to my knowledge, have endorsed my candidacy: Republican Voters League: President, Harry C. Riddle; located at Colorado Hotel, Denver. Denver Volunteer Committee: Secretary, Theodore A. Chisholm, 719 Midland Building. University of Colorado Alumni Shaw Club: Secretary, Charles J. Kelly, 714 Equitable Building, Denver. George Shaw First Voters Club: President, Justin Brierley, Colorado Hotel, Denver. Very truly yours, GEORGE H. SHAW. The CHAIRMAN. Now that there may be understanding here that will enable those who are busy and who can not afford or do not desire to remain and be here except at the call of the committee, I think we had better outline as roughly as we can or fully as we can, rather, this morning, the order of witnesses as we shall call for them this morning or through the day, and I will indicate as nearly as I can the number whom we hope to reach and be through with this morning, so that any named after that can feel free to absent themselves at this time and return at 2 o'clock, to which time the committee will recess at noon. We shall call first for A. W. Hahn and then Leonard E. Anderson, W. R. Weeks, Lewis D. Mowry, Mrs. Bertha V. Perry, Charles R. Enos, Charles E. Holcomb, Philip S. Van Cise. George E. Brimmer, William S. Lail, Cecil R. Conner, Robert L. Meyers. A. B. Apperson, and John A. Carruthers. I am sure that we will not be able to reach all of that number, yet we shall try to, during our morning session. Then D. L. Welch, S. Chase, C. D. Bromley, C. N. Stannard, G. B. Buck, Thomas A. Nixon, Hurbert D. Waldo, Rae H. Kiteley, J. Paul Hill, I. I. Daffer, R. B. Cloud. F. W. Strackan. H. E. Sneedecker, John R. Gain, Leroy Williams, and Joseph B. O'Connell. Now then, Mr. A. W. Hahn. |