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PRESIDENTIAL CAMPAIGN EXPENSES

2.5, Congress, Senate,

HEARING

BEFORE A

SUBCOMMITTEE OF THE

COMMITTEE ON PRIVILEGES AND ELECTIONS.
UNITED STATES SENATE

SIXTY-SIXTH CONGRESS

SECOND SESSION

PURSUANT TO

S. RES. 357

A RESOLUTION DIRECTING THE COMMITTEE ON PRIVILEGES
AND ELECTIONS TO INVESTIGATE THE CAMPAIGN EXPENSES
OF VARIOUS PRESIDENTIAL CANDIDATES

IN ALL POLITICAL PARTIES

PART 1

Printed for the use of the Committee on Privileges and Elections

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HBFIY

PRESIDENTIAL CAMPAIGN EXPENSES.

MONDAY, MAY 24, 1920.

UNITED STATES SENATE,

SUBCOMMITTEE ON PRIVIELEGS AND ELECTIONS,

Washington, D. C. The subcommittee met, pursuant to call, at 10 o'clock a. m., in room 422, Senate Office Building, Senator William S. Kenyon presiding. Present: Senators Kenyon (chairman), Spencer, Reed, and Pom

erene.

The CHAIRMAN. I do not know how many gentlemen are here. who have been requested to come. We wish to accommodate them in every way we can. We realize this is a pretty busy time for them. The gentlemen who are here might indicate if there is any time that would suit them.

Dr. RANDOLPH J. HERSEY. I am Dr. Randolph J. Hersey, of West Virginia. We have our primary election to-morrow, and I am very anxious to get back to vote.

The CHAIRMAN. When do you have to leave here to get back.
Dr. HERSEY. Any time before 4.30.

Mr. EMMERSON. I should like to get away by 8 o'clock to-night if it is possible, but I am here subject to the wishes of the committee. I represent the Lowden interests. We are very busy out in Illinois, and I should like to return by 8 o'clock to-night.

Mr. FRANK. I should like to leave this afternoon if it is convenient. I am at your service, of course.

The CHAIRMAN. I think we can get through with all of your gentlemen. We shall try to do so, at any rate.

Before proceeding to the taking of testimony, I wish to say that this subcommittee will carry out the instructions of the Senate and of the Senate Committee on Privileges and Elections as embodied in the resolution passed by the Senate and likewise the resolution passed by the said committee, both of which resolutions will be made a part of this record.

There is no intention either to aid or injure any of the various candidates for the Presidency in any party.

The question of the source of contributions to presidential campaigns and expenditures of such contributions is a perfectly legitimate subject of inquiry by the Congress. We appreciate that this is a busy time for campaign managers, and shall try to accommodate them in every way consistent with finishing the inquiry at an early date.

The resolution of the Senate under which the investigation is being held is as follows:

[S. Res. 357, Sixty-sixth Congress, second session.]

Resolved, That the Committee on Privileges and Elections, or any subcommittee thereof, is instructed to investigate forthwith and report to the Senate as soon as possible the campaign expenditures of the various presidential candidates in both parties, the names of the persons, firms, or corporations subscribing, the amount 182774-20-1

35

contributed, the method of expenditure of said sums, and all facts in relation thereto, not only as to the subscriptions of money and expenditures thereof, but as to the use of any other means or influence, including the promise or use of patronage and the providing of funds for setting up contesting delegations, and all other facts in relation thereto that would not only be of public interest but would aid the Congress in any necessary remedial legislation.

That said Committee on Privileges and Elections, or any subcommittee thereof, is hereby empowered to sit and act at such time and place as it may deem necessary; to require by subpoena, or otherwise, the attendance of witnesses, the production of books, papers, and documents; to employ stenographers at a cost of not exceeding $1 per printed page. The chairman of the committee or subcommittee, or any member thereof, may administer oaths to witnesses. Subpoenas for witnesses shall be issued under the signature of the chairman of the committee or subcommittee thereof. Every person who, having been summoned as a witness by authority of said committee or any subcommittee thereof, willfully makes default, or who, having appeared, refuses to answer any question pertinent to the investigation heretofore authorized, shall be held to the penalties provided by section 102 of the Revised Statutes of the United States.

The expense thereof shall be paid from the contingent fund of the Senate on vouchers ordered by said committee, signed by the chairman thereof and approved by the Committee to Audit and Control the Contingent Expenses of the Senate.

The resolution of the Committee on Privileges and Elections, under which the subcommittee is acting, is as follows:

Resolved, That a subcommittee of five members, of which three shall constitute a quorum, be appointed by the chairman to conduct the investigation with which the committee is charged by Senate resolution 357, and that it proceed at once to prosecute the same; that the managers of the campaigns of the various candidates or persons reputed to be candidates be requested by telegraph to attend before the subcommittee on Monday, May 24, 1920; that the hearings before the said subcommittee be public and that it be directed to proceed in the work with which it is charged with all dispatch. The subcommittee may appoint one or more of its members to investigate any particular question or questions. The subcommittee shall report to the full committee.

The CHAIRMAN. Mr. Hitchcock, as you seem to be most anxious to get away, we will examine you first.

TESTIMONY OF Mr. FRANK H. HITCHCOCK.

(The witness was duly sworn by the chairman.)

The CHAIRMAN. Will you state your name to the committee and your address?

Mr. HITCHCOCK. Frank H. Hitchcock; 120 Broadway, New York City, is my office.

The CHAIRMAN. Are you the manager of Gen. Wood's campaign for the Presidency?

Mr. HITCHCOCK. One of the managers.

The CHAIRMAN. Who are the other managers?

Mr. HITCHCOCK. Mr. William Cooper Procter.

The CHAIRMAN. Is he in New York now?

Mr. HITCHCOCK. No; I think not. His headquarters are at Chicago.

The CHAIRMAN. Would he be found at Chicago?

Mr. HITCHCOCK. Yes, sir; at Congress Hotel. The assistant managers in the East, two in number, are Norman J. Gould, Imperial Hotel, New York City, and Thomas W. Miller, same address; and for the South, Senator Moses, of New Hampshire, with headquarters in Washington.

Senator REED. There is just one manager for the East?

Mr. HITCHCOCK. There are two assistants in New York City, Messrs. Gould and Miller, and the manager for the South is Senator Moses, with headquarters in Washington.

The CHAIRMAN. Who was the manager before you took partial charge?

Mr. HITCHCOCK. Mr. Procter.

The CHAIRMAN. Was there not a man from Connecticut.

Mr. HITCHCOCK. That was Mr. John T. King, of Bridgeport, Conn. Senator SPENCER. He is not now connected with the campaign management?

Mr. HITCHCOCK. No, sir.

The CHAIRMAN. You have seen the resolution, have you not, and know the general purposes of the investigation?

Mr. HITCHCOCK. Yes, sir.

The CHAIRMAN. Under the resolution the committee would like to know the sources of contributions to the campaign. Can you give us any information about the names of the contributors and the expenditures?

Mr. HITCHCOCK. That information can be given, I understand, by the treasurers. I have had very little to do with the financial side of the campaign. I came to them under the condition, when I entered the campaign, that I should not be called upon to collect campaign funds, and I have followed that policy. After the announcement of my connection with the campaign various people, from time to time, sent in checks to me and I turned them over to the organization. The total of those checks did not exceed from $20,000 to $25,000 for the entire campaign. The money was collected by finance committees in the various States. Each State has a Wood campaign committee, and that committee has appointed a subcommittee on finances. Members of that subcommittee, in each State have made collections.

The CHAIRMAN. To whom do they report?

Mr. HITCHCOCK. They turn in their money to the treasurers of the campaign. There are two treasurers, one in New York and one in Chicago.

The CHAIRMAN. Who are they?

Mr. HITCHCOCK. Mr. Horace S. Stebbins is the eastern treasurer, and his address is 44 Leonard Street, New York City. Mr. Albert A. Sprague, 600 West Erie Street, Chicago, is the other treasurer.

The CHAIRMAN. Can these gentlemen be found at these addresses now?

Mr. HITCHCOCK. I assume so. I am not sure about Mr. Stebbins. When I received your telegram Saturday night I tried to get in touch with him to suggest that he come over with his records, but I found that he was out of town and I have not been able to locate him.

The funds, as I understand, have all been turned in to these two treasurers and they have kept complete accounts in detail of everything received and also of all disbursements. I understand that all disbursements for the campaign have been made by check drawn by these treasurers. So far as my knowledge goes all disbursements have been made in that way.

There is another source of income. The Leonard Wood League, so called, which comprises perhaps 50,000 or 60,000 members all

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