Congress of Industrial Organizations Political Action Committee Individual Contributions Account, Aug. 15, 1944

Each of the committee's 14 regional directors is provided with a revolving fund from which to pay the current expenses of his regional office, including such expenditures as may be made in connection with primary campaigns. All disbursements from revolving funds are supported by vouchers which, when submitted to the national office, are debited against the appropriate account as an expenditure of the region. The attached summary of disbursements includes all disbursements made from revolving funds for which vouchers have been submitted as of Aug. 15, 1944.

Congress of Industrial Organizations Political Action Committee individual contributions account disbursements, July 23 to Aug. 15, 1944

Congress of Industrial Organizations Political Action Committee trade-union account-Contributions and expenditures in congressional primary cam

This committee supported a number of State candidates endorsed by the American Labor Party and Congressman Marcantonio.

National Citizens Political Action Committee Financial Statement, Aug. 15, 1944

Ever since the C. I. O. Political Action Committee was organized fantastic stories have been circulated concerning the fabulous funds available to us and the lavish manner in which they were expended. To scotch such baseless statements the committee issued a complete financial statement to the press on June 3, 1944, giving a full and accurate record of its receipts and expenditures as of May 31, 1944. Nevertheless, these fanciful tales not only persisted but have now multiplied our assets to even more fantastic heights. Again, therefore, we present the cold facts to your committee and, through it, to the press and the public.

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You will note that the receipts and expenditures of the C. I. O. Political Action Committee are divided into two separate statements. One is entitled "Trade-union contributions account," and the other "Individual contributions account." The reason and the basis for this segregation of funds will become apparent as I proceed.

The original funds of the C. I. O. Political Action Committee were derived exclusively from contributions from the treasuries of C. I. O. unions. Prior to the C. I. O. convention in November each of the international unions made its pledge. Those pledges were publicly announced at the convention. In addition, a few local C. I. O. unions have made unsolicited contributions. Union contributions aggregate $671,214.11.

The total disbursements from this fund as of August 15, 1944, aggregated $371,086.56. Of that amount, more than 76 percent was spent for salaries and travel; office rent, equipment, and maintenance; and publicity. Only $67.320.48 has been expended or contributed in primary campaigns and State elections. Attached to the statement is a schedule of the committee's contributions and expenditures in congressional primaries.

All expenses of the committee from the time of its organization until July 23, 1944, were paid from this trade-union contributions account. Since that date, none of the operating expenses of the committee have been paid from that fund. With the exception I shall mention in a moment, that fund was frozen as of July 23, and will remain frozen until after November 7. All of the operating expenses of the committee, incurred or paid between these two dates, will be paid from the individual contributions account which I shall describe in a moment.

We have frozen the trade-union contributions account in order to assure scrupulous compliance with the strictest possible interpretation of the Corrupt Practices Act as amended by the Smith-Connally Act. Our committee has sought the advice of counsel on every phase of our work. We are advised that the Smith-Connally amendment to the Corrupt Practices Act prohibits labor organizations from making contributions in connection with an election. The act specifically excludes party primaries, party conventions as well as State and local campaigns from the definition of the term "election." We were therefore advised that the expenditure of funds, derived from trade-union contributions, prior to the inception of the election campaign was unquestionably legal. We were further advised, however, that the use of these funds for operating expenses after the parties had nominated their Presidential candidates might raise debatable questions of law. We therefore froze our trade-union contributions account immediately after the conclusion of the Democratic Convention. No funds will be expended from that account except for contributions to or on behalf of candidates in primaries or State elections or for such other purposes as are unquestionably permitted under the terms of the Corrupt Practices Act. All other expenditures will be made from the committee's individual contributions account.

To finance the work of the committee, we are requesting voluntary contributions in the sum of $1 from the members of the C. I. O. I want to emphasize here, as we have repeatedly emphasized to our members, that these contributions are entirely voluntary on the part of the indi

viduals whom we solicit. We are asking that 50 cents of each dollar be contributed to the C. I. O. Political Action Committee and that the remaining 50 cents be retained in the State or locality. The campaign has only now been inaugurated and I would not hazard a guess as to the amount that will be raised. We do know that our members are fully alive to the issues at stake and are confident of their response to this appeal for funds to carry on our work.

The statement entitled "Individual Contributions Account" indicates the receipts and disbursements of that account from July 23 to August 15. You will note that the total amount received is $56,922.50, of which a part has been loaned and the balance contributed by C. I. O. members, members of the C. I. O. staff, and a few outsiders. Disbursements, all for operating expenses, for the period from July 23 to August 15 aggregate $36.983.50.

As I have said, all of the operating expenses of the C. I. O. Political Action Committee are being paid and will continue to be paid from this individual contributions account.

I now turn to the financial statement of the National Citizens Political Action Committee. That committee is seeking contributions from those members of the general public who suport its objectives. The executive committee, at its meeting on August 5, 1944, set a ceiling of $1,500,000 on the amount of money it would seek. You will note from the statement that we are still far short of that goal.. Loans and contributions aggregate $78,569.06. Expenses, all for salaries, publicity and other operating costs, total $20,328.64.

I think it apparent from these financial statements that the real asset of the two committees is not the money in their treasuries. If that were so, we would be poor indeed and would hardly have merited the interest and attention which our work has aroused throughout the country. We cannot hope to compete in the collection and expenditure of funds with the representatives of those groups who have made us the target of their abuse. If we relied on money to do our work, we would have scant hope of success. I need only recall to you that in 1940, despite the limitations of the Hatch Act, the Republican Party and its cooperating groups collected and spent some $17,000,000 on behalf of their candidates. The total expenses of the C. I. O. Political Action Committee to date are considerably less than the 1940 contributions to the Republican Party by 50 wealthy families alone. I assume that they will do as well or better in 1944. What we have and what they lack cannot be measured in money. It cannot be bought and paid for. It is the enthusiasm and the energetic cooperation and assistance of millions of Americans. We have won their support because we have brought them a program which meets their needs and aspirations; because we are helping show them how that program can be realized through the exercise of their rights as citizens. It is for this reason, and not because of the size of our treasury, that we have won their confidence and goodwill. It is for this reason and not because of the size of our treasury that we have earned the enmity of those who fear the power of an enlightened people; of those who fear a big vote; of those whose thinking is so remote from the thinking of our people that they rely on the power of money and not on the power of ideas to win elections.

In conclusion, gentlemen, I should like to reiterate a suggestion which I made before the Senate Campaign Expenditures Committee on June 13 of this year.

From the very inception of our organization, the American public, the Congress, and the Department of Justice, have had the most full and detailed information regarding our objectives, our methods of operation and our finances. In February of last year, at the outset of our work, we were investigated by the Federal Bureau of Investigation. The Bureau investigated us for the second time last month. So far as we are advised, no other political organization has been the subject of its scrutiny.

We appeared before the Senate Campaign Expenditures Committee in June. To date, no other political organization has, to our knowledge, been the subject of its examination.

Immediately upon the organization of your committee, we were asked to appear before you as the first and, as yet-so far as we are aware the only subject of your inquiry.

We do not object to this examination and reexamination of our work. We are happy to tell our story to the Congress, to the lawenforcement officers of Government and to the public.

We do believe, however, that we should not be made the exclusive object of governmental inquiry. Time is growing short, gentlemen. We are within 2 months of the election. Yet I have heard of no investigation-in progress or proposed-of any one of the many powerful and well-financed organizations which are engaged in political activity in this election year.

The country has heard something of the activities of the anti-Roosevelt so-called American Democratic National Committee, whose former chairman, Mr. Woodring, stated in a New York Times interview on February 25, 1943, that it would have a million and a half dollars at its disposal for 1944. Yet what does the American public or any agency of Government know as to the receipts, the expenditures, and the details of the operations of this committee?

We have heard something in the public print of Mr. Gerald L. K. Smith and his America First Party. Yet does the American public or any agency of government know from what sources this so-called party receives its financial support, how much money is available to it or how that money is being spent?

Mr. Frank Gannett's Committee for Constitutional Government, Inc., is another organization active in the political field. In 1943, it expended more than $300,000. How much is it spending in this election year? Who has supplied the funds, and how are they being spent? I could elaborate the list with many other organizations, some whose names are well known, others more obscure: The National Economic Council, the United Mothers of America, the Anglo-Saxon Federation, and the National Association of Manufacturers itself, and let them not be so very shy about their activities-of course, they have been in politics all the time, lobbying in and out of season, including the National Industrial Information Committee and the other interlocking agencies of big business which carry on its high-powered campaign of political propaganda.

We think that these organizations are overripe for inquiry.

We and those whom we represent ask why it is that political activity by labor excites such torrents of abuse in the public press