Francisco, and again on November 2 in Washington, D. C., in ion to a full day's trip to New York City to examine Political n Committee records at the source. In the course of these ngs 44 witnesses were examined, ranging from the responsible nal heads of the organization down through regional and State tors to officials of local Congress of Industrial Organizations hs, shop stewards, and even rank and file members of localsding a few rank and file members who had complained, concerning ities of their own locals. SELECTION OF ORGANIZATIONS TO BE INVESTIGATED me has not permitted the investigation of all organizations in the ed States whose activities appear to verge on the political, but selection investigated by the committee is believed to be both artisan and representative of the problem presented by organons which, while in one sense or another actually engaged in ical activity, disclaim partisan objectives and shape their organon and their practices so as to evade or avoid-existing legise requirements of disclosure and prohibitions leveled at political tices deemed corrupt and pernicious. ACTIVITIES OF ORGANIZATIONS e scale of operation of some of these organizations is impressive. out exception, they operate on a Nation-wide basis; and many em have affiliated local organizations. One was found to have nnual budget for "educational" work approximating $1,500,000, among other things regularly supplies over 500 radio stations "briefs for broadcasters." Another, with an annual budget of $300,000 for political "education," has distributed some 80,000,pieces of literature, including a quarter million copies of one le. Another, representing an organized labor membership of ,000, has raised $700,000 for its national organizations in union ributions for political "education" in a few months, and a great more has been raised for the same purpose and expended by its organizations. 1 of the organizations under investigation have certain factors in non. The recurring characteristics are: (1) Emphasis is placed he dissemination of literature and propaganda through all availchannels of communication-newspapers and periodicals, books pamphlets, the radio, public meetings, and the mails; (2) their ities are financed in part by the sale of literature and subscrip, in part by contributions, and in part by dues; (3) most of them ate continuously rather than merely during election campaigns; heir expenditures typically do not take the form of direct contrions to candidates or political committees; and (5) their advocacy signed to inculcate broad sociopolitical attitudes which, while inably identifiable as favorable to one set of candidates rather than other in any given campaign, and understood as such by those se opinions are affected, nevertheless profess to be nonpartisan in that sense nonpolitical. ut the investigation has also developed significant differences in attitudes of these various organizations concerning disclosure to the Congress and the public of their sources of income, their affiliations, and their concrete objectives. Some have disclosed freely and voluntarily in all these respects, while others have resisted and two have refused. CONGRESS OF INDUSTRIAL ORGANIZATIONS POLITICAL ACTION COMMITTEE The testimony reveals that the Political Action Committee was established by the executive board of the Congress of Industr Organizations at a meeting of that body on July 8, 1943, that betwee that date and the Congress of Industrial Organizations convention November of that year its program was discussed in the internation and local unions; and other groups, were invited to participate in the discussions, and that at the Congress of Industrial Organizations convention at Philadelphia in November a statement was then adopte approving the plan and outlining a program. This program wis described as one of political education in terms of social issues and social program; it was frankly in favor of the reelection of Franklin D. Roosevelt as President and the election of a "progressive" Congress it was emphasized that the Political Action Committee was neither a third party nor an appendage of either major political party. 3 Shortly after the November convention, the Congress of Industri Organizations Political Action Committee set up its organization. Fourteen regional directors, responsible to the national organization € the Political Action Committee in New York City, were appointed and set up headquarters in Boston, Mass.; New York City; Newark N. J.; Pittsburgh, Pa; Cincinnati, Ohio; Detroit, Mich.; Chicago, IL Atlanta, Ga.; Dallas, Tex.; Kansas City, Mo.; Minneapolis, Mint Denver, Colo.; Los Angeles, Calif.; and Seattle, Wash. At the tim of the hearings 75 people were employed in the national office and about 65 in the regional offices. In addition to these, there were als various representatives designated by the international unions whe devoted part of their time to political action, largely within their ow organizations. Each regional director covers a territory of several States; and each State there is frequently a Political Action Committee organiza tion, usually working out of the same headquarters as the Stat Congress of Industrial Organizations council. Local unions likewis have their own local political action committees. The total membership of the Congress of Industrial Organizations in the United State is usually placed at about five millions. The finances of the Congress of Industrial Organizations Politica Action Committee have come from the membership of the Congress of Industrial Organizations. At first the Political Action Committee national organization was financed by pledges from the international unions, aggregating a little under $700,000 and in some instances running as high as $100,000 each. Money paid on these pledges came from the various union treasuries, and as of July 23, 1944, there remained an unexpended balance of $300,127.55. Testimony shows a portion of these funds was spent in primaries. The fund was frozen as of that date in order, according to Mr. Hillman, to assure compliance with the strictest interpretation of the Corrupt Practices Act as amended by the Smith-Connally Act, From then on, and until after the election in November, the national and regional activities of the Congress of Industrial Organizations Political Action Committee were financed by individual contributions. For this purpose contributions generally in the sum of $1 were solicited from members of the Congress of Industrial Organizations, 50 cents of each dollar collected being contributed to the Congress of Industrial Organizations Political Action Committee and the remaining 50 cents being retained in the State or locality to finance the activities of the local political action committees. The report shows a total of $56,922.50 was received in this fashion by the national organization from July 23 to October 15, with disbursements for the same period aggregating $36,983.50. The relationship between the Political Action Committee and the Congress of Industrial Organizations is nevertheless close on every level of organization. Mr. Hillman is president of the Amalgamated Clothing Workers of America, as well as chairman of the Political Action Committee. The State political action committees typically utilize the existing mechanism of the Congress of Industrial Organizations State councils; and the local political action committees are similarly set up as committees of the Congress of Industrial Orgranizations locals. From the testimony it is not, therefore, possible completely to separate the resources and facilities made available to the Political Action Committee even after July 23, 1944, from those of the Congress of Industrial Organizations and its unions. On the national level and in most States that separation appears to have been preserved so far as cash income and cash expenditures for strictly Political Action Committee as distinguished from union activities are concerned. The local distribution of Political Action Committee literature, for example, has been largely handled by volunteers on their own time; and the contributions have largely been taken by shop stewards outside working hours. But no such separation has proved possible where the use of union offices and office personnel is concerned. Union personnel assigned to full-time Political Action Committee work have typically been transferred from the union to the Political Action Committee pay roll. But the part time Political Action Committee services of persons who are both union and Political Action Committee officers cannot be thus readily segregated. In California the scheme of organization apparently varied from the general national plan in that the State Political Action Committee and the State Congress of Industrial Organizations council were less sharply differentiated than elsewhere. Mr. Mervyn Rathborne, secretary-treasurer of the California Congress of Industrial Organizations Council and Political Action Committee, testified that there the State Political Action Committee did not keep separate records, expenditures for Political Action Committee activity being made from a legislative fund of the California Congress of Industrial Organizations Council. The State Political Action Committee was simply set up by the officers of the Congress of Industrial Organizations council as a subcommittee in May 1943. Then the committee and the State executive board of the Congress of Industrial Organizations called on members and unions in California to make contributions of $1 each, or contributions equivalent to $1 per member. A part of the legislative fund has been contributed directly from union treasuries, in other words, and a part by individual contributions from members. Testimony shows that at least one local union in California upon vote by its entire membership levied an assessment of 25 cents per month upon each member, and that the proceeds from this assessment went into the general fund of the local for political action. In addition to these first two Nation-wide patterns of Political Action Committee organization, e. g., the preconvention Political Action Committee financed by contributions from unions; and the post-convention Political Action Committee financed, generally speaking, by individual contributions from members of Congress of Industrial Organizations unions, there has also been a third-the National Citizens Political Action Committee. This latter was set up, as Mr. Hillman explained, as a broader committee which would give nonlabor groups an opportunity to participate. Its expressed objectives were much the same as those of the Political Action Committee, and included the election of Roosevelt and Truman, and of Congressmen deemed by the organization to be "progressive." The officers of the National Citizens Political Action Committee as of August 1944, in addition to Mr. Hillman, were: Hon. George W. Norris, honorary chairman; James G. Patton, vice chairman; Freda Kirchwey, vice chairman; R. J. Thomas, treasurer; James H. McGill, comptroller; and Clark Foreman, secretary. A list of the executive committee, and of the members, also appears in the record. The activities carried on under each of the three Nation-wide forms of organization discussed above may be summarized as follows: (1) The Congress of Industrial Organizations Political Action Committee, during its preconvention phase and while operating on funds contributed by the international unions, as such, made contributions of money to candidates in their primary campaigns; and likewise carried on a general educational program. The educational program included the distribution of literature bearing on the issues of the campaign and on the voting records of candidates; the endorsement of candidates for the Presidency and Vice Presidency by the national Political Action Committee, and the endorsement of congressional candidates and of candidates for local office by the State and local political action committees; radio programs; a campaign to induce people to register as voters; and the holding of meetings and sending out of speakers, (2) after the candidates had been nominated and up to the date of the general election, operating now on funds derived from the contribution program, the Political Action Committee continued to engage in the same range of educational activities, but refrained from making money contributions to candidates or to political committees; and (3) the National Citizens Political Action Committee, operating up to the date of the general election on funds derived from individual contributions not confined to labor circles. engaged in the same range of educational activities as the Political Action Committee, and in addition made money contributions to candidates in their campaigns for election. In all fairness to the national office of the Political Action Committee it should be stated that its officers have made full and voluntary disclosure of all information requested by the committee; and that the records of the national as well as local offices contacted by the committee have been made available. REMEDIAL LEGISLATION INDICATED Limitations and shortcomings in the pertinent provisions of the Hatch Act and of the Federal Corrupt Practices Act, as amended by the War Labor Disputes Act, as revealed in the course of the inquiry, may be cataloged as follows:" DISCLOSURE OF RECEIPTS AND EXPENDITURES Under existing law a "political committee" is required to report its receipts and expenditures; a person spending $50 or more "for the purpose of influencing in two or more States the election of candidates" is required to report; and a candidate is required to report his expenditures and all contributions "in aid or support of his candidacy for election," or "for the purpose of influencing the result of the election," whether received by himself or by others "with his knowledge and consent" and for his benefit. In thus defining the categories of organizations and individuals required to report, and the kinds of receipts and expenditures to be reported, the Congress naturally used language designed to exclude organizations and activities of a social, charitable, religious, patriotic, civic, or educational-as distinguished from a political-character. And it goes without saying that neither the press nor the radio, insofar as their journalistic and commercial advertising activities are concerned, were sought to be covered. These distinctions between political campaigning and other activities were workable enough so long as the activities in question remained more or less separable in fact. The difficulty is that this condition seems no longer to obtain. There are still, to be sure, political committees in the traditional and statutory sense of the term; there are still quite nonpolitical, social, charitable, religious, patriotic, civic, and educational organizations; and there are still newspapers, magazines, and radio programs which are quite what they purport to be. But it is also true that major power and pressure groups show a growing tendency to participate in political campaigns indirectly through these traditionally nonpolitical forms rather than directly through political parties, party committees, and outright contributions to candidates. But if the statutes are thus understandably limited, it does nofollow that public disclosure from these presently exempt organizat tions is not important and desirable. On the contrary, disclosure of the sources of their funds, of their affiliations, and of their concrete objectives as distinguished from their abstract professions of faith, is even more important than disclosure by party committees of the conventional type. For the public knows pretty well where each political party stands, and what each represents. They present no great problem of mislabeling and misbranding. The true colors of some of the "educational" organizations herein investigated, on the other hand, are by no means as apparent. Some receive anonymous contributions, in one instance, two $1,000 bills in an unmarked envelope. Some solicit contributions by agents compensated on a commission basis, using what they call a mail-order technique. Several seek by this means to have contributions to their propaganda activity treated as deductible for tax purposes. Enforced disclosure by purveyors of political propaganda thus becomes as necessary for |