e

ressure
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TheInsideStoryof lobbying
inAmerica
By

BENNETHG....
CRAWFORD
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NEW YORK

JULIAN MESSNER, INC.

 f"\'l1Ll$\\Ei>. 11\' Jt'll \N ~l::>~N.ER, INC,
S "\\l:~T 40 STl'\l:ET, NE"\\' \ORK

OEOTCAT£l> TO THE MY.MO.RYOY

P AUL Y. ANOEJW)N ANO Roosv,y T)trrCHf.P

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 CONTENTS

CHAPTER PACE

Foreword . . .. . . . . . . . Vll

1. "Decay of Public Morals" . . . . . 1

2. "A Congressman Must Derive Income" . 21

3. Methods Were "Secretive, Reprehensible" . 38
4. "Oppose Utility Bill" 55
5. The Snake-Oil Men . . 72
6. Snpercolossal Lobby . • 90
7. Un -American Activities 107

8. Finks, Spies and Girdler . • • 125

9· "G'1ve U s SIups
. " . . . .
10. The Liberty Leaguers . .
1 1. "Pernicious" Sugar Men .
12. R.ooscvelt, the Dictator
13. The Sntlers . . . .
14. 'fhc Virgininns . . .
15. \lt1ilronds Unregenerate
16. 'l'hc Lt1bor 11ront . •
17, 111·cssure [1•0111the 1'op
 Foreword
LrKE most of my colleagues in the Washington Press Corps,
I have the job of watching day by day and reporting edition
by edition what our statesmen, their bosses and their min-
ions do for the weal or woe of the people of the United
States. Being a reporter, not a columni st, I am circumscribed
by the rules of my craft, one of which forbids expression of
the writer's opinions in the news columns. I am cramped,
too, by the exigencies of daily journalism which often make
it impossible .to get the whole story until the event is no
longer headline news.
Suppose, for example, that a Senator I particularly mis-
trust introduces a bill to abolish relief. I write merely: "Sen-
ator So-and-So, one of the leaders of the economy bloc, today
introduced a bill to abolish relief, explaining that he con-
sidered an immediately balanced budget necessary to recov-
ery." Under no circumstances may I add: "It is my personal
opinion that Senator So-and -So doesn't kno,v the budget
from a racing form-sheet and probably introduced the bill
because one of his campaign contrib u tors told him to."
That would be editorializing and guessing. Both are forbid-
den by well-run newspapers.
Weeks later, after the newspaper carrying the report of
So-and-So's venture in legislating has been used to start a
fire, I may discover that my origina l un,vritten suspicions
were correct-that the Senator was indeed ordered by one
of his powerful constituents to stop this relief foolishness
and give the jungle rule of survival of the fittest a chance to
vii
 .IX
1'01( l!\VOltll
'\l'<-
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1-'lt", l\11t h, th,\t tin\t" intt"rt·st in rt•lit•f 1 ,
. '\ • • ins s11
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bs1de<1
1 dolt :ll best and :i crook at worst, win re-election and ad-
t"lll{\C\l,\l I ' ;,n,i n 1\t"\\
' ""'" c11s1s is nu1king the I , 11. :i
lt ts · st\ ' \\ n1, <lpu11011
· · t h,1 t St•n,1to1
'
· So-·, nd-So i
,eat 1nes
· · v:ince1nc11ts,,vhilc this other legislator, who has all the
h h . ' ' ' . s n tr1n,n1er
,,t '.'o,,·, e •~n t '"o, ·th the space for his exposure. So l file qualiHcations for public service and conscientiously tries to
se then1, quickly fades from Lhc national scene?
the 1n£01n1nt1on a\\·n,• · on the chn11ce
' tlint
' 1't "'•'\l co1ue · 11
The ans,ver s01netimes is to be found in the u1nvritten
hnnd,• the next tin1e • .relief hns the 'stnn...
·-o~ 'and Sennto r So-and-in
footnotes rather than in the ne,vs itself. Subterranean forces,
d to .horn n1to tt. By tl,en, no one "'ill care ,•ery m•,IC h •
So ;\tru:s
whose directions cannot be charted on a day-to-day basis,
• n ~ it goes .• -\!most every \\•eek, certninly every month.
make and break legislation and legislators. All public men
something comes along v,hich makes me "'ant to · . are influenced to some extent by pressures from groups
"Th ld fra ,vr1te.
at o ud, So-and-So, is at it again." Frequently, too, expressing their ,vishes through ,vhat are known for ,vant
I have th~ urge to t~ the readers of my ne,vspaper that of a better label as lobbies. These lobbies are made up of
some public man has disregarded political expediency to do individuals called lobbyists, who may be peddlers of per-
a b~ve and states~anlike_ thing, an act ,vhich probably ,vill sonal influence, paid propagandists or amateurs promoting
b~ distorted by his enemies and unappreciated by his con- causes in ,vhich they sincerely believe. These are the pres-
sutuents. sure boys. Their exploits are seldom recorded on the front
Occasionally some of my own opinions muscle their way page. They make no speeches in House or Senate. Yet, col• )-
into my copy but they are al,vays carefully disguised-like the lectively, they constitute a sort of phantom fourth branch
liquor on a salesman's expense account. And on these rare of the government.
A majority of the pressure boys being hirelings of private•
occasions when I capitulate to the urge for self-expression,
property interests, their enormous energies and considerable
the copyreaders on my paper, who are devilishly efficient, cut
talents are devoted primarily to the protection of property,
out most of the obiter dicta. The result is that I suffer from sometimes by fair means and sometimes not. While con·
repressions, some of which I am working off in this book. ceding that in our capitalistic system-activated as it is by
If it is called biased and opinionated, as it doubtless will the profit motive-private property is entitled to protection,
be, I make no apology. It is the unrepressed personal bias it is my contention that it is overprotected by the lobbies to
of a professionally impartial observer ,vith no political affili-
ations and no doctrinaire axes to grind.
The material here used is the residue of daily journalism
-
the detriment of a growing majority of dis~ssessed Ameri•
cans. Where the right to "life, liberty and pursuit of happi-
ness," the theoretically inalienable prerogatives, has conflicted
collected by every Wnshington ne,vspaperman. ~1ost of t11e ,vith the right to hold and exploit property-a mere civil
incidents are of themselves unimportant, but often they privilege-the inalienable rights have too frequently been
providr n significant footnote to the headline ne,vs. '\o\Thy aliennted. Property has not hesitated to corrupt government
docs this pieC'e of legislation, " 'hich see1us highly desirab le. ,vhen necessary to preserve its precious advantages and to
gt't no"•hc-rt'."•hile this other bill. ,vhich benefits only n extend them. This has been going on for so long that we
la,v? ,v hy d()('s this legislator, "·ho is
~nu,ll gt-o\1p.t'l('('Ou1es •
 FOREWORD
FOREWORD .
x . . re in , ,vashington we are casehardened; Xl
scarcely nouce it. I-le , property lobbies will push it is, amounts to a co1nbination in restraint of decency in
. f 01. m·anted t 11at t 11e . .
we take it o· h er the interests of their pnn- government.
our legislators around w cncv
Property not only plays the ga1ne {or all it is worth under
cipals arc threatened. r d by- ( 1) leadin g the rules but also insists upon making the rules. This it does
In a eneral way, pressures arc app ie . .
' g . tl t they can be re-elected only if by exercising more influ ence over Congress than its voting
C essn1cn to be 1ievc 1a . . . strength justifies in a representative democracy. And when
ongr given bill or, (2) conv1nc1ng their
they support or oppose a the rules are not satisfactory, as they have not always been-
. h ConQ"fessmcn should or should not be
constituents t 11at t e o particularly since the advent of the New Deal-property, or
he first is the older, n1ore simple method. Here
re-e1ected . T b · d at least part of it, has no compunctions about ignoring them.
the ConQ"fessman1s • . pe~sonally urged by the lob y1st to o
These are the opinions, heretofore restrained, which ac-
what bu:iness interests want him to do. The argument may count for this book. They are its thesis. For the material
. o f a campaim
be the promise o contribution or assurances
. that used in developing this thesis I have drawn upon personal
thew~~o n the lob b)·ist' s side. The second 1s the newer,
, observation and memory where tlley served, on better mem-
now more fayored technique. Here the Congressman s con - ories of others and official documents where they did not.
stituents tllemselves are proselytized by various forms of per - I have tried not only to be faithful to the facts but also to
be fair in tlle selection of illustrative case histories. I make
suasion and propaganda.
Often tlle lobbyist employs a combination of the nvo no pretensions to exhaustive treatment of tlle subject of
lobbying . Neither do I presume to offer a solution for the
methods. He finds it fairly easy to persuade articulate rniddle -
serious problem of government created by the lobbyists.
dass ,·oters, who hold tlle balance of political power in most
I am obligated to many newspaper colleagues, to a large
districts, to become partners in tlleir o,vn undoing by fav~r-
number of government officials, to several lobbyist friends
ing legislation which not too obvious! y does them a dis-
and to a few members of Congress for assistance in gathering
serrice. Predisposed to property's case because of their o,~ the material for this attempt to suggest ,vhat pressures are
ambition to acquire tlle power and prestige of ownership, brought to bear on government, who the pressure boys are
middle-class people are the lobbyist's most likely suckers. and how they operate. I do not mention tllese collaborators
A catchy slogan, repeated often enough, is sufficient bait. by name for obvious reasons.
\\"'orkers, especially when organized into unions and
guided by alert leaders, are not so easily duped. The pluto-
crats, of course,know what side they are on. The benighted
average man in the middle stratum, who believes what he
reads in newspapers like the Chicago Tribune, u readily
befuddledand cruellyhoaxed. He u the victim of a lobbying
and propagandasystem, which, developed and perfected a.,
 CHAPTER 1

"Decay of Public Morals"

BACK in 1927, when Congress first made a serious regulatory
pass at the ,vashin gton lobby, the practice of lobbying was
defined as "any effort in inRucncing the action of Congress
upon any ,natter coining before it , whether it be by dis-
tributin g liter ature, appearing before committees of Con-
gress, or interviewing or seeking to interview members of
either the House of Repr esentatives or the Senate." A lobby-
ist was declared to be "one who shall engage, for pay, to
attempt to influence legislation, or to prevent legislation, by
the National Congress."
To one who has watched the operations of the omni-
present lobbyists o,·er a period of years, these definitions
seem inadequate. They leave out many of the practices and
many of the practitioners of what is now encompassed by the
generic term, lobbying. Senator Thad Caraway of Arkansas,
the malevolent lobby-harasser responsible for the language,
was not pleased ,\Tith it himself. He confessed to the Senate-
in the course of debates on his bill to require registration
of lobbyists-that he was not sure he had covered everyone he
wanted to get at and was even less sure what the courts would
do with his legislation if it became law.
It was more than likely, he conceded, that any law de-
signed to put a finger on the powerful, often mysterious,
outside forces manipulating legislation would run afoul of
l
 THE PRESSURE BOYS
t
the constitutional right of petition. The founding fathers,
remembering that George of England refused to receh·e
their protests. placed great store by the guarantee that every.
one "ith a grie,-ance could ask Congress for redress. How,
then. was it possible to prevent every lobb}ist from going
and coming at will ~king redress of \\Tongs? That question,
IOl!ether1-ith the effons of the lobbyists to escape regulation,
ha: kept all comprehensive lobby legislation off the statute
books. Caraway's bill got through the Senate, thereby estab-
lishing a record for progress, but it was pigeonholed in a
H005e committee.
Io the ca5e of Trist versus Child, the Supreme Coun
refused io uphold the claim for payment of a lobbyut who
had perf.onned bu pan of a contract to influence legislation,
on the ground that such an undertaking was contrary to
-~ policy and good moral!." Elaborating its reasons, the
C,omt ht:ld: ulf any of the great corporatioru of the country
were to hire adventurers who mak.e mark.et of th(.-rruclve5in
thu way, to procure pauage of a general law with a view u,
promotion of their private interest,, the moral sense of every
right minded man would instinctively denounce the em-
ployer and the employed u •tuped in corruption and the:
empl,;,y,»ffit a, infamc:,u,. Jf the inttancu we-re numeroWJ,
"pell and wlerated they would be regarded a, a rnc.-a.4ure of
decay of puJ,Jic moral, and degeneracy of the time. N()
pr<.phetk•pirit would be nttded to fr,reteJJthe con.eq uencc.4
near at hand"
If the v,urt wa, right in thi, di<,.tum, dec.ay ij upon u.4.
While tf,e 1awyer-1tJ1Jbyi•u,
the publi,ity•l()hbyi4tll and all tl1c
r~t carefully differentiate Ix-tween perlJ()nalwlidtation ol
IC'"9t1atnr,antJtheir own eff-OTtll
to convinceby pul,lic ap•
peal, their v.ari,,u, methoo•are "' interwoven that the de•
cuion in Tritt ver1utChild would apply almo•t invariably to
"DECAY OF PUBLIC ~101\ALS"
3
at least a part of Lhe work done by every lobbying organ-
ization.
Hugo L. Black, who took up the prod Caraway once ar,.
plied to the overstuffed posteriors of b<:tter-fed m<:mbers ,,I
the lobbying fraternity, seemed in a fair way to win hi~ fight
for lobby-control legislation in 1936, before his appointrner,t
to the Supreme Court CUL ~hon his c.areer in the Senate.
Black's bill passed both houses of Congress only tr, l,e re-
jected by the House following a conference to v,rnprorni'><:
differences between the House and Senate dral~. \Vithout
Black, the investigation he started bogged dow11,and 1<,bby
ing as a force subversive of democTacy probably will be: for-
gotten until someone ebe with the 7,ealand skill ,,r a Caraway
or Black comes along to remind the forgetful public.
The: lobby anny -sma ll enough to be overl<,r,ked in n,,rrnal
time5 but big enough to fight a Central Arncrkan boun,fary
war-still UJbusy in W;uhington burning the bridg"~ l,e.
tween the voter and what he: voted for. A IJf,ut lj,r,r,o rnorc ,,r
lc.l'Jactive lobbyuu opt-rate in the national c.apital nr,w.
In its narrowest 1JCnse,the: tc.-rrn lol,1,y applic:, ,,nly 1,,
thO\fewho work in W:uhingwn and in other 11<:aUJ of g,,vcn,
mcnt for or ag.ain1t propOM:d legislation. 'J li<:y wau.h Llic
f1TCY6"CHof l<:g~lation affecting their tlicnls, undcr t.,1kc 1.s,
promote, arncnd or defeat it, and f,n~lly, if it hcu,rncs Jaw,
they keep in touch wilh enforcement itg<:11,.ics. ·1 heir tauic.s
run the gamut from personal 11<,lidtati,,n of c,,n~tCf~rncn
and Senators in the intirnacy of tlie cocktail lou11gc L.Oim-
p,1'!1Qnalargumcnt.4 before commiuecs at public hearings.
Some lolJhyista arc ingenious and cffctLivc, some stupid and
harrnful to the intcrcst/J of Lhcir prindpals, JK>mcsimply
fakers who do nothing but collcct their fees.
'file legal profession gets a lion's share of the lobby busi-
ncs,, explaining why Washington is more dcn11Clypopulated
 The revolving door between the press and lobbying is completely ignored

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<"$t.tblishedfor this :ll'ti,it, in \ \'l&hington." C.':.11 ·,1w,1y en , s..1g~sclt•1u,ttllht1~ . he d0 this" L'I' 1•·t·,
-.; th,11 '- •11·1,• t lOlll d\.>lllg · t Itat.
jvyed nothing so u1nch ,is ex,unination on ~he witn:$$ sc.111-I A [ew stron . g. n1en 1n both brcuiche•" ·11t , ·1 •-1 v c• to £.,ce out
such an 1nsp1red storn1 but nu>st n1e1nbers ate im es.c:d. '
of sollle "\\'ashing-ton lawyer "·ith pretc-ns1ons to 1nflut·nre
il.! 1ot e:'lnicked, b)' i c pr '
ayer Congress, He once gleefully report<.-d to the Senate that
he had found a bright young n1an ,vho was able to collect .R=c,·elt. . like eYery . other . refonuer. who h·is ~ occuptt,.'\,l
• · -~ h.lS
$6o,ooo in one session of Congress for perfonning no 111ore office,• hn, had occasion to u1, e1<rh .:> a!!':l1'11st
o· tile ~)S • •ten1 th at
service than 1>Titingto businessmen, every ti1ne a la,v they pernuts cleYer representati\'eS of 1ninoriti es to mislead Con-
liked ,vas passed, that he had been solely responsible for its gress about ~ack-_ho111e sentin1ent and to n1islead tfie people
abou t ,vhat 1s going on u1 Congress, The power lobby held
enactment. up_ and alm ost defeated hi~ utilities holding couipany legis,
To Black, the problem presented by the lobbyists was
lauon and ~hen obsu·ucted 11s operations after it became Jaw.
more serious. After his inquiry into the machinations of the
Other of his re~~rn1s encountered si1uilar, although less spec-
ship, airplane and po,ver lobbies, he became convinced that
tacu_lar, opposiuon, J ackson denounced and fought the
the lobbyists' wire-pulling in the capital, their propaganda Nauo~al Bank lobby, Wilson h ad his tussles with tariff
activities outside and the effectiveness of their ne,v tech- lob_byis~. Coolidge and Hoo ver had no trouble with the
niques constituted a threat to democracy itself. In a 1935 legislative representatives of business for the very simple
radio speech, he said: reason that they all worked the saine side of the street .
"Contrary to tradition, against the public morals, and ~II sorts of specialized interests , from mouseu·ap makers
hostile to good government, the lobby has reached such a to international bankers, are represented in vVashington,
position of power that it threatens government itself. Its size, some b Y assoc1at1ons, · · some by lawyers, others by nond escript
its power, its capacity for evil; its greed, trickery, deception freebooters, Women, labor, veterans, reliefers, farmers, bank-
and fraud condemn it to the death it deserves." ers, pacifists, manufacturers, big businessmen-all these have
their agents on the scene, Part of labor is set against another
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\I ll\ 11\\\1\II \ \ I , I \\\i\ilt\111\ I 111\•IIII 1111111 "'"' , , 1111111Ii ,11.t,111ol 1111\ I, 1111, '"I,' I' 11 I "" I\ , ,, .. 111
I h I , 1111111111 1I ,1•
111d tHH IIII IIH\ ~! II I ,, 1 11\till l 111 d 1t111, 1 I\ I, ph i 1t h , t11 "
\1111 11 11,1111,1 I I \ I 111111, 1111 111,, , 1 1•1•\1111111 j \ '

I 1h1111 \\Ill I 1111,

l h1 11111111• ,.,. I I 1•111, I 111 l•\111 \ Ill 111\11 1111h Il l I~ 11tl II 11111
1- lfi 1 ( h 11ul11 I , d t 11111111, 111 1111 r"!I
I ti I II II • 11•111t•1•1111\ thllH I ' • '"" I IIIIIH 111 1\1111111ii 1' 111 1, ,111.! l11111d 11 .i ~ 111 I I 1d 1
,11111 h h•\I I\ II I 111,,11, ,111111 1111111 ,I Iii, I
111 I 1111111111Ill
1111I II \\II I 11111 I ,,1I 11111111 ••• 11,,11 111 1-1 " II 11111I. ' """ l,1lh o11
, """"'"" 11,, li,t. 111 Ill ,ii , 111.I 111 111111 II
.i 11111
111111••1111\ I h111 11 ,,111 • l h ,\n 111, l 11I 111 11, 11 1,,, 111111111.111. H,,,, 1,1111111t
I Ill 1 1 I

,,1 )\'''''t ,11111111114 \11 11\11I I "" ' 111q111111\1 ,. " ' ' ,I t.1 1 111 l'"'I" II\ '"" " ' . •l 1111lo 11, , , .. 1 l" " I'"" " ,. 11 "I' ·"'
l h, 1•1•\\1I ,,1 "" I 111111 I', -.:I II I \\hi, , ·I• I\ 111II I 111, 1, I 11, 111111111q,l11 ii• d .. 111, 11111
,. 1111' I II ' " 1111"""' " ,1, h I I 111
I II • I 1 1•111111111, I I I I \ 1111.~ 11111111I I 11)1111 11.. d 111tl11, 11, II I ..." H" '" llll 'l\ 11111
1 ' """~
\Ill \ lh 11\11 I ' I II Ill I I ,I, I 1111111
, , 11p 11111\1I
I I \ ill I 11\II I 11Ill II\\ II• 11'1h\hl 111111111,I 111 1111 1•111•11,il, 11\cll\ll t' I, li111 II, 111111111 •
\ I I\ ,, I\\ I ' t t \ h11\h Ill 1111 \1 1111II Ill
1 111 I I I 111111 ,, , , I I\ 11,1 I , 1 , 1111111 • 1,1111•!\•d with ,1 d 111l111''H" l 'l1t• l,11" ' ' ' " ,111,I
11\I I 111
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I I 1I I \1\\1\1\11\
I
II \I I I ll \1 1,111~ 111,11 11
,,,
1111'1, 1'l•l11t, ,d 11111
,, k , 11111, ,,1,,,11.1111111
,h
\ \ 111111 1 1 1 I 1111 11111111' ,111d 11111\I I II
111llh• ~••t•l..111),\ l'll lll lllld1 ,1,11,1111
,1111
·, , h111 1111•11 1111111\1
•, ,111'
1111111 11 h1 l~ipll\111\ ':, \ ;: :: ::: , ', N iihi n ,d 1:,,111111 111,,,,
11 1 1 h ,1111..lv ~1,111•d l'1 11p 1•111• 111,1" 1111·1,1111 •, 111 ,111 ,1111, 111 1.111\r
h, 11\ l\\1 ~, 1~ 111 11 I I ~ t 11"h- ~ 11111 1- \\ i' h1•111
l h ,111~~ \II 1'1111111111 I ,1•111111N1•1I • • t l \' \ 111, 1111111•11 111111111d,•1 th, • l,11'1• ll'h hl..1·1., it is 1111,111,,,- 11'\\ I I..
1111111t 1\1 11 ·~ h, 111.t, ;Ill \ I I,111I 111,1111• 1h1° " ' 1,1, IIH I ll I' 11 l 1111 l,11 11,r 1111
•1111•, 1 fl\1111111! 1111
• si 11.1ll1•.i 11111111'1
•1,
''l'l ' \11111
' 111 Ill 1\11\l' lllll ll llt 11\lll l 'I S1I I11 i 1111l 11111
•1,11 \ 1\1 I H rfl 11t,11h 111h 1•111111
1•, 1111 \1111•111,111, ' l'h11, 11,; 1,11isr in "l'I''"
11111 4l!s,11l111i1111111 h11\dh111 111111p
a 11!1•s t11 p1 1•vr 11t 1111n
1h,·1
1•lr1l1h 11tll11h·~ llu ili
l h1• 11•11•1,11111111I111h1•1 p .11d111h Pl l\1Hll1, 11h 111s 1111 l' ' 11
1 •I l11s11II il1•h 11il 1• Is i\1111•d1, 111ls 111 lt , t'l r. It s 1,1ns1• in , ,,, i, 1i11fl
IIIII' up whh h11s1111 , li11ndh
·s~ wl11•11 11111 ,1I11•1 M' 1111 • 11 I 11 1 h l11h1•1· n1rp11 u 11l1111111'. t'S h t•r 11111rs ]11s1kr 111 t h t· li11k , t1Hl
1
111\'I\ ( l11•1 th, • h•111,h ,111I, l I IS t I\I~ l Ill''· s lh ' 11 ..I' ,. ,~' 1h1· 111\ISI\Ill 1] h1 hlr r. 1•1t'l1•1,1hly 11 w lll11w or 1111111 . l'hc•
•ph ,111, i\111I so 1111

1,t th, • tuhhy ~y~11•111, 11 11,~1, II 1,11111II1111t 1h 1I h1•~1 · 1,1!1•111 ,1111 1lt•n •p1!011 1,111lt•stl\ 11·1 !1110 111rthn d . /;1,111n •s 11r p1 n p,1)\,1111t.1
1hr 1111,,11,1h•111. A11tls1•11111tl. •H p11•1 IN1'I)' 11•h ,11 1I
~111111 ii n1r rn111r n lr<I, llnn n lul r 1·,111s1• 1n'};111ti,. 11h,11s 111'1
' 1h 1111•11 i11111
1
11•~11,11111, low 111,1•N, ~11hsldlt
\y 1111, f1r1•11t11111'111111 • ·,i wlu •i r P11 Jll' tl )"s 1·n111pnl1l ns on 111\t' [ll't' lt'XI 11r 1u1n1h c-1. ' l'h r h 11111l
' ,,r 1hr lnhhy 11111 ~1 ht· a111\ of1r 11 ts q11k k t'l\(l1t)\h
' 111 0111 11f tiu ,~l111•si· to 1k1 't'i , r
poi1iblr ,11111hl11p1uhlH , II w11111sl,lll1'1'1111111
lht• pnbl!r t')'t' ,
extrpt whrn 1u1111·HIn 011 thr
11(Jvt111111r111 pnylnllt' il(\ ,
 l ti l'
" HI • ( , I \ ftl PIIUI II ti t11u \ 1 i,
II
3
i
11111
, \V,1nltlUAltllt I lt · W , 11, (J\1 1l, 11Jl...111 \\lu 11 llii I.Jg p, I,~
and influential b11siut '.~sn1t•11cli, 1,. wc•H' p ,1'i~r'd c,11 1, lull Id ,-.uld
,1111111lll nv 'o1111111tli t 111i1t1
J11 1· 1td
S ineti1nes wca 1LIiy , . , 11,,. t lollW I S. ( :111111u
i11g:,:oi ( :,,111u·, lie 111, l.uulnl , w l11iII, llb I;
0 ., •• nd lohby Conf.(ress dtr tc tly . No 0111• 1
. h ·ntcnnech,11
I
ies a . t,,, nu ned 0 111, w,t:, a 1,jggl't IH,1111 10 KH·uu·, 111,111 ,, 11y ,q,pulul
wll or gets such a respcc1f11l hea11n f.{f1 0111 th.
uch easy access . f .. . < 111,.111 ol his owu n,ulcl ft,O\'<' 1,..,.,1.
s tatives as a i)lg shot o bus 1ncss, pa1 ttcnhi 1
eo !e's rcprcsen , . ' y JVf,
,ny a vVaslii11g 1011l.iwy,·1 will t,·11 you iliilt 111, < uuld
P P. ·c,n contributor. When the Banking Act <I
if he 1s a campa10 . • 1 keep his clic1~ts 1111tilthey IIC 'l'd<·d f,,vo" fi,H11 11,,. Jt1>1t1t
onsideraoon at secret sessions o[ a coininit J)eparllTJelll. fhen, SOtll<:how, Kl t:IIH' J M't'lllt'd LO J;t"l 1l1t·111.
d C
1935 was un erirascible old Senator Carter Glass o[ Virginia . . ·
tee head ed by • Cummings and Kremer were Lu11;1a,,1<on1pa11io 1"· ' J'hcy
bers of the Federal Reserve Board cou Id fin< ! Jived together 111 the early days of 11,c• New Deal aud vaca
not even mem . .
out what was going on, but Winthrop w_.Ald~1ch, of the tioned in Europe together when the At101 ncy Cenci .,1
ChaseNational Bank, was able to communicate directly with needed a rest. Businessmen were not ~low to fi11dthis out,
the committee. Senator John G. To,vnsend, Jr. , a former particularly if the Justice Department was after them for
,rallStreeter himself, gladly talked ,,ith Aldrich on the com. antitrust law violation or some similar offense. 'fhe result
m.ittee-roomtelephone and conveyed the banker's suggestions was that Kremer cleaned up.
to the commiuee. \\'hen the President's relief bill ,vas before After resignin g from the Cabinet in the middle of Roose-
Cono= in 1939,the story ,,·ent around that Joseph Pew, velt's second term, Cummings went into the lobbying busi-
PellllS'"h-aoiaoil millionaire, called Senator Jame 's DaYisb, ness on his o,vn. In partnership ,vith William Stanley,
tdepbone and demanded that he cast the deciding vote for an formerly his first assistant in the Justice Department, he
amendment reducing the appropriation by $150,000 ,000. opened an office "for practice of the law" - a practice which
Senatoi- _.\l.benBarkle, of Kentucky told it to the reporters bm flourished. Among Cummings ' earliest clients were some
of the same firms the government started to investigate while
Damdenied it.
he ,vas still Attorney General. When the Union Electric
"Themost a<h-antageous position for a lobbyist is a placr
on the national committee of the party in po\\·er. President Company of Missouri, a subsidiary of the North American
R~t tried earh· in his administration to clear thi Company, became involved in one of the nastiest cases of
corruption the Securities and Exchange Commission ever
Dnuoctaric ~ational Committee of practicing lobbyists and
turned up, Cummings and Stanley were the attorneys of
,rasputull'\"SU~. record for the concern.
But mete rcsigrotion from the Xational Committee did
The firm also represented the Columbia Gas and Oil
not rost the political veterans all their influence. There il
?arporation of Dela,vare, against ,vhich antitrust proceed-
thestotT. £ore.nmple, of J. BTuce Kremer of 1Iontana. one ings ,vere instituted by Cummings before he left office.
of the men affectedbv the purge. Scarcely had the ,-~ie; It ?eveloped that Stanley had been representing this firm
been <OUDted in 193t. "·hen Kremer quit a none-too-thriYl\1f while still on the payroll of the Justice Department at
law pnctitt in his home state to seek his fortune in De111,:,
 ,, ~ \\\\ \\ 1.\t \'\. f.l 1.., ,1-..,,:.,, !<>
I I

.. ....•~- \_t (1; Lo.:.:-

' l"\\'-!\h k'll\llUUc" f'll-.U(h,'""t"':" \h~ Rv ':<\(:!
., '
' \\ ()lt'1 ,, ~ u ~eJ. h.'\ be ~n ;1.J:-0: ?'p~i...l._.~ .. ._: "~: 'c.:i!-..
'' c,) •• !--.1~1·r }:'<"'(-•1!-0 :11..~ne =-~r>! S-c 1.-1d Mie c· a \
_'I; ~ ....
-. ~ -, r-
.... ~--i_.u(' Ri, ;..,uc_\\"hi~ne\ b, .,.::e........
, ...............
...v- ._..4... -. '-· "' · ~
~-• ._(,.
•
\. he re;1:e<l a hou~ in ,,·.1.:-· i .. ;-: :'.l to ~-.; i.5' ze!"41,:aii:Jea.c-
'01- • ~ .. :
q:.ur.e.tS •~o=- c.::e
•
1 uo, ..~ =- ..
.. ,. \ .• "
...t"5. i:.i: ,, a..i
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~~et-: .._ . t- _
.
c: .. :.... a.~ns:
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't: =-~-;,,.-~i._-..
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.. ..
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'.l - :"\o: all t..½.e\,-0::::.e:1wh-o 1::UL.~-.e · e co ...-1-e
i.o ,vis!rin-zton are m::ec am,=rec.:1 r:..e';;,· ....
; oc·
,,: t'\ '!u"

- ..-- .... --
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.. .......-',;- \,.'--.... Q..,._\,.\.~e-
............. ~-;;.
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.
an<l friends li~e ~fr~. Robe;. a:ic \~-s. Lr.,::;~ rr. .-.
_ .._ ~- ~ .. :,...~ -. -?' :"c:--i::~ ReJO:te:-s once ca::"!-:--
---
-- _r:;: -- - ;,... - - -- -::-
- .. ..... ::-
- . professional Jobb,in 5 bterni· ·. i5 p.:-t v-r.r,::•·.T· ,:, r,f
..
-
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-
- -

:=.
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~~
'--'- .__.. __ .._,_ o·.. an
. l ~..!...•a... ~·-·-
ci -:..,e .h~teci
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'""'"'--1.4,.,t -::
g,_ .....

Gas and Eiea:::

c-.c:::-a::'1 ~:- ~ ::i::::e .d::en Ho?500 i--.~
~;. ,;f_ ~ ,~·c.:;
'3/:r"i; Lobb, ln•esrigacin-;; Commirr.ee.
~- ~ ,\-. Clip Robert, Jr. , now secreta.r:, r,:
tJ:c Dcmccraric );aciom.I Co;,1111irttt-
~ ~ the azmp!e of a long line of secre-
ta:ria of oariooaI com mittea of the pany in power, Im Wed
hf:! politiaJiy inflUt:ntial job as a springboard for the big
\'/ashington ip!a.,h. He and h~ welI-publicized wife, Evelyn
\V-alker Robat, arc at the moment the most corupicuou.1
fi,,
!tirCS in what is sometim es called the social lobby, an
importan t branch of the trade in which the standard toob
are teacup and cocktail glass.
~frs. Robert is by all odds the best -looking blonde in
\V.uhington society and her pleasant image is the stock
decoration for Sunday rotogravure sections and society pages
in Washington newspapers. She also enjoyed a reputation
for wit until she started ,vriting a daily column of it for
Mrs. Eleanor Patterson's Washington /Jerald. Daughter of
the late 1-larold Walker, long a Standard Oil lobbyist, she
knowsthe game inside out and has become the trade's top·
mosr successful of d1e ladi~ auxi:iar. are ''..-s. ~r..•,,,
- . ~- \\.a.Iker \\ rllebrandt. who stepped in::,:,a Ju,....a•·\~?·i.at~
o?a i 03 ou: trot
,
law practice afteT making her~if fam0u1 as an at· tar.• a:
wrney general in charge 0£ prr,hif,itir,n la·-r ?''H' tir,r
and Katherine 0:,nnor. Demr,o-ati<: .Satir,n.a 0,m,r,:t.:r~
woman from Kentu cky. ~either r,f the<r. ladi~ wagn her
talent5 promoting a man', career. The; wr,rk fr,r th1:TnY:he1
and do well at it.
It i, ~timate<l by h,.-r r-.tille-<i',{UCS
that \fn. \Villebrandt 1
income i, some-where hetwc:c:n 'S~Q,<l<'><) and $7:;1.>if, a jt'.ar
It h.u been up thc.-rcin the bi~ figure! c-vc.-r 1inr.e the <Juit
the Junice Departm ent in l!J29 11,f,c:r.c,mr, u,unw:I tr, Fruit
Tndu!trie3, Ltd., th e Califr,rnia firm that beat prohibi1i,,n I,~
5elJing fruit concc.-nt.ratcea,il y r-,onvertiblc into wine in the
privacy of the home. The: transition from prohibitir,n
cruaader to prohibition dodger didn't seem to strain thr
feminin e tranquillity of Mrs. Willcbrandt.
' fhe Kansas-born schoolteacher took to sophiuitation
gracefully. Il er practice has no,v bran ched out into airplanes
and other indu strie s based in California; her private li[c is
divided between a hom e in Georgetown, which is o[ten a
meeting place for bearers of big names, and h<'r farm in
 THE PRESSURE BOVS
12
nnsyl\'ania. l-fer husband remained in Califo .
western Pe . . rn1a
when she first came to \Vash1ngton and never JOined her
here. h"
l'vfrs.Connor arrived on the \Vas 1ngton scene later than
l'vfrs. \Villebrandt but her rise has been faster. She leri
Kentucky in the early days of the N:w Deal_ to look over
the capital and has been here ever s~nce. Fnen~ship With
Senator Joseph Guffey of Pennsylvaiua, a lobbyist of part.s
himself before he entered the Senate, showed her the way to
promotion and pay. Through Guffey, she became acquainted
with i\fatt !llcCloskey, Philadelphia contractor and poli.
tician, who has done 1nore public building und er the New
Deal than n1ost of his competitors. In 1939 Ickes held up
payinent for one of the !IIcCloskey projects, claiming that
the contractor had made an arrangement with local officials
to get advance information enabling him to underbid his
compeutors.
Glamorous l'vlrs. Connor, ,vho left her traveling-salesman
husband behind in Kentucky, soon found that her political
duties left time on her hands which could be used to look
out for the interests of her business friends. She established
a salon frequented by government officials and clients alike,
first in a hotel apartment and later in a Georgetown house.
Her activities attracted no great attention outside her im-
mediate circle until she turned up in 1937 among the
vociferous admirers of Tom Girdler, ranking rugged indi-
vidualist of the nation, and told friends she was working
for him.
Since then, there h.1$ been reason to suspect that she is
a per10nof far-reaching influence. Her income has been
mimaw:1at $6o,ooo a year. She aupported Governor "J-Jappy"
Chandlerof Kentuckyin his 1938 campaign to un~cat
SenatorAlben Barkley,Democratic leader of the Senate.
"DECAY OF P U BLIC MORALS" I~
Chandler Jost, but in 1939 he sent troops into bloody
Harlan County to help its mine operators hold out against
John L. L~wis after ~II other operators had signed new
contracts wilh the United l\[1ne ,vorke, ·s. Since Girdler's
company and itS affiliates are good custon1e1 ·s of the Harlan
operators, there were some who suspected that he was behind
Chandler. And since Mrs. Connor is close to both men,
there also were some who believed she was the intermediary.
Not to be mentioned in the same breath with any o[
these top-bracket lady lobbyists-but nevertheless iinportant
in the lobb ying picture - are the corps of girls, n1ost of then,
]ow-paid government clerks, who are always willing to help
out the privilege-seeker in \Vashington. So,ne lobbyists in
the lower strata habitually n1ake use of their services. Is a
legislator from whom one needs a favor impervious to night
clubs and indifferent to liquor but putty in the hands of a
pretty girl? Get a pretty gir l.
Just how widely this technique is used no one knows.
There are no statistics. But occasionally an instance comes
to light. Shortly before adjournment of the 1939 session of
Congress, for example, a House con1mittee instituted an
investigation of milk bootlegging in the District of Colum-
bia. Acting on instructions from the committee, police
planted dictaphones in strategic places, among them a hotel
room. What they got was a lot of choice bedroom conversa-
tion and evidence that a lobbyist, ,vith the aid of feminine
assistants, was trying to cash in on the inquiry. Whiting C.
Faulkner, postmaster at Martinsburg, West Virginia, and
~art-~ime lobbyist, was indi cted for perjury as result of the
inquiry. He was accused in the indictment of offering $1,000
t~ ~ontrol Representative Jennin gs Randolph of \Vest Vir-
ginia, chairman of the investi gat ing committee, and then
denying that he had done so.
 TIIF. PRF.SSURE DOY$
"DECA y OF l'UBI re MORALS" I:,
\.j
p Buckner New·. York ma n abont town • '''as
. . ' . . Jiis agents went all over the U 11itc
dStates telling folks the
\\'1lham • ut the sa1 ne t1n1e for . his pa rt 1n a conspiracy ..
. d at"• bo . .
conv1ctc y Company bon"us,- san 1e du ng.
. t 1IC !Un•rket ror Philippine Ra1h,•a • Robert ans,vcred by filing a $50,000
slander suit against
to no- to get thingi
'." . the trial sho,vc.d . that he had .trie,d . Delacey Al len , ~1 e o~ Ien d;n g _leg isl ato r, bu t inimcdiatel>
Tcsumon) 1n ns leg isl ators a
. \\ Tahs ington by g1v1ng the natio withdrew it. J~s1ders 111 v\ ash1ngton
knew Allen's charges
done 1n selected Broad" •ay sho,v girls. 1-1 dL
ct a fe, v e e sub sta nu all y correct. Secretary of Intc1ior Harol .
chance to nle on
am g w b
tor Da' vid I. \Valsh of 1\fassachusetts, Ickes, who then controlled P\VA allotn
1cnts, first authorized
wantecI Scna enhance the value of n tha t Ro bert would receive
others, to help put over legislation to the gra nt to Ge org ia on co nd itio
he got anY'vhere with vc r, ,vh en l\Ic lntyre interceded for
the bonds. There "'as no evidence that no fee . He rel en ted , ho ,ve
o is acute!) allergic to
the project in \Vashington. . Robert at the v\Thite House. Ickes, wh
,00 0-a -ye ar inc om e can find many ha d ins ist ed in the ear ly da ys of the New Deal that
A lob by ist ,vi th a $1 00 lobbyist s,
sistant Secretary of
ways of ing rat iat ing him sel f ,vi th a Co ngre_ssman drawing Robert be ousted from his job as As
fill ed 1111th the socialyl in ch arg e of pu bli c co nst ruc tio n. At that time the
Sio ,oo o. W he the r a dra wi ng roo m Treasury
st< ~c ked,vith liquo_r or~ sid en t lis ten ed to his co mp lai nt an d Secretary of Treas-
pro mi ne nt, a co un try est ate _ ,ve ll Pre
Robert relieved of his
hotel room adequately equipped ,v1
th other attractions u ury Henry Morgenthau, Jr., ordered
l and sometimes as sup erv iso r of co nst ruc tio n. Sh ortly after these
indicated , the lob by ist ha s the wh ere ,vi tha duties
ed.
orders were carried out, R obert resign
the ingenuity. PvVA, as he had
her husband out Just before surrendering control of the
Even Mrs. Robert ,vasn't able to keep rnm en t reo rga niz ati on plan, Ickes took a
ia legislature recently to un de r the go ve
of trouble ,vhen a member of the Georg disallowed a fee of
nt fee for "architec- couple of parting shots at Robert. He
accused him of exacting an exorbita r its contract with I.he
connection ,vith a $36,000 due Robert 8c Company unde
tural and engineering services" in te of Ge org ia in co nn ect ion wi th the program to which
,vorks program i'.1the Sta
$4,000,000 Federally financed public also demanded repay-
act ,vi th the sta te, Robert's engineer• Allen had referred in his speech. Ickes
state. Un de r his co ntr State University (or
6-p er- cen t fee . One of the !~gisla· ment of $25,000 allotted to Georgia
ing fir m wa s to rec eiv e a
nst ruc tio n of a "d orm ito ry" ,vh en he discovered that the
cent ,vas a leg1u01atc co
tors said he had information that 5 per building ,vas in fact a Sigma Nu fra
ternity house. Robert
charge, and that 1 per cent ,va s for sec uri ng a °
Joa n 1
ee ,vays: as a brother
of $1,800,000 from was involved in the dormitory hoax thr
$2,200,000 from the RFC and a grant in the bo nd of Sig ma Nu , as a tru ste e of the University and
the PWA. Said Robert's accuser: th erefore one of the petitioners for the allotment and
as
ly inf orm ed tha t cit ies an d counties all over .
"I'm rel iab
his representatiV~ architectural engineer for the building
d by Mr . Ro be rt an d ge on Ickes. The
Georgia we re tol
ds for their pubhC For all this, Mrs. Robert took reven
tha t if the y wa nte d to ge t Fe de ral fun
, a loc al vV ash ing ton ma ga zin e of which she ,vas
Senator
jec ts the y ha d be tte r em plo y Ro be rt 8c Company. · · ·
pro
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Pres i1.lt·nt <.~h.n ks Curtis . F.u h in tht' R on.$t'' dt -\thninb
.... ~
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....., '·: ..,,.._.'"-=" - r " {\\\\Cl, trat ion. , he intn to ~t't th i n~s th,nt· Wt't (.' Ki t'iue-r. Robt'rt
:-,.'\.':Y:.t:, 1: ,!t,1 I!,'{ lU<"l\tl,>n_ th.II R,>l>t·tt. \\ ,\S the , i.:u: l.icks (Hl (_)rN t'W l-l.unpshi H". l«)llP.,(H.\lStH l'I of l h~ Dt·n1or1.H ir
,'! :h<" hlr: Ls;;..,:ic-n: .u1d th.\t 1h1s .\l'\-Otlllt<'<.I tor tht' O\Hb ' National C,>intniuce . .-\n h11r itnlkn. :S:;11irn1.1I Commiu, •,•.
¾. tn:tn fron\ ~('br:tsk.:l. now dt·ct"~$('<.-\ , or Jot· D.l\ ks. 1.Hci
"-': \\\,).:.-:1..Ulh "::l(h.
, ....~ r~·i-·nin-y
~ ~
.... ..4.4 ... '\.
from th<' Tre1surv. Robert h,, '-vt:,-~11tl
\,_,_, .,,.,
a,nb,1ss.1dorto Rnssb .1nd Bt'lginn,.
1
,,-xi~a:: him..«-it 10 his duties as he1d of Robert & Com • Donald R . Ri chberg. forn,er head of NR .\ and of the
• e d.irt',;1or ot"hI e ~111
<"-',:,:uu, ' l,eastern Governors' Cop:tn, •ational E1nergcnc1· Conncil. who has gone into Da,·i..-s·finn.
. . . nfei. is t11enew king of the lobbv. It is the consensus an1ong his
enc<'. ;ind ,ecret;ir, of the Democrauc ;:s;auonal Comniittee
colleagues that he was the highest paid n1en1ber of their
Ho,.-e, er cfuconn<'Cted these 1u1erestS ma} seem, they are in
profession in 1938. His clients included Henry Ford, Stand-
bet clo;eh co-ordinated and highly profitable . The South. ard Oil, and the Giannini banking interests. An able law-
e:utem Go,·ernors· Conference has two primary purposes.. yer, with an engaging personality and scores of friends in
10 lure runawa~ industry out of l:'\e,v England and other rela. the Administration, Richb erg is well equ ipped to lead the
ti,·ely high-wage areas into the cheap-labor belt of the deep lobbying pack.
South and to emascula1e the "\\'age and Hour la,v. Robert He got his start as a railroad labor lawyer and associate of
does the luring as the Governors' agent authorized to promiie Secretary Ickes in the early but futile campaigns for civic
1a.--.:-exemptionfavors and immunity from labor trou bles. reform in Chicago. The libe ral tag still clings to him , which
Then he steps into the role of businessman and attends makes him infinitely more valuable to his clients as a pleader
to the housing of the transplanted factories. And finally, as before Ne,v Deal agencies than "'ould a more conservative
secretary of the Democratic National Committee, he does background.
what he can to restrain fello,v DemocratS from adopting When he lashes out at the National Labor Relations
Board, as he sometimes does, his ,vord carries ,veight. To
policies which might interfere with the prosperity of thest
the public at large it is a case of a liberal denouncing fellow
new Southern industries.
liberals who have gone astray. The casual observer of na-
4 tional affairs does not realize that he no,v speaks for Henry
Ford, ,vhose plug-u gly methods have involved him in several
Biggest money and highest ratings among the lobbyists
cases before this same NLRB. Nor is it generally realized that
change with Administrations and shifting political winds. when Richberg criticizes the methods of the Securities and
In the Hoover days, one ,vho wanted to put on the fix saw Exchange Commission, he speaks for Giannini rather than
James Francis Burke, secretary of the Republican National the public or, for that matter, even Richberg.
Co~nuttee,
· C • Bascom Slemp, who had been secretary to
Recently the former NRA executive has taken on the job
President Coolidge, or Edward Everett Gann, husband of
 THE PRESSt.:RE BOYS
·-
''
: _: _,, ·n •=e Standard. Shell and other oil prorv.rt·
"DE.C.AY OF PCJ6LIC .",f<JkAI.\" I <j

C"- ...,.~...u.:: .._ .. lf!1

==
l''-
<Ptcing up shop in \Vashington with Jarne~ F.. Dulli -
::e e,?:o?=".a::~ procli,i~es _of u:ie ~dena~ g,,..~,. he wa.s~ ..
=::. : :.:::~!e~.:o . ne = succtte~. Ul suffe~ng the attitu-:!t
,,ho had been hlS out.side man when he wa.sthe ruler <,f
ganl, o •O,nnor sent out his original announu:ment~ c,n
Ru es. . . .
-, .-.__.. , ...,.•.._ ix~'-
_ ... ___ • ~e;;: ,o~,=c I.he labonte ruler; of T.!".,t ,: r-mroittee scauonery 1n House of Represenlauvc:s
·- .• ~ , ., . .._ ~"":-coo: :1ei:hbo:- on c.1-ie
South-t0 the~-.· Ru Ies ._,.., .
l - -~ ..... - - ---~ - l.;...,I...~ ,..... Later he mailed more formal notic.c:s that he
=: ,:-: s.,.._-:-e::i:-, o: 5:.:i.:e Hul'.·s Good :S:eighbor polic-;· en, e10r···
"resume the active general practice of law in \Vash-
, ,_,._~ -~ :":::: :.,• re;:l::tec :o be one of the cou<>h~•, ,.•.;• \'\·ouId
~ jn!!"ton.D. C., and :'.\ew York City, specializing as trial and
-~-"'-

c_:-- ~!~
--

~=-=-= ..._ • C

::! :::; ce"~in;s w::h lobb~ists. Rich~ •
·::. _ ,,:~; '-:::- :o:-ei;:;i ,'.:Jj:-s. Richberg is upholding L't
:a,:: :. .x:. .:-: :.::~ D:n-:~ fu-::1. Before he married '.\{rs. '.\fa:-
.:-~~ p.,_~ c:...~ H:::-:o:i D2,-ies.. the ~eral Foods million.
:i:.= '::)(:!v.:i:-•ec he:- =b:cion to become a diplomat!
.:~ ~.-i~ :e?:==-:ec Pres:i.cent Trujillo of the Domini-
,=: ~e:-::~.: z;. ,,~llz;. domestic industries. From Truj illo.
~:.,-5.~ :.; T9:::ec :o J!3,e rece.h-ed a single fee of $4So.ooo
:;,:- ~~:1ci:l; ?:n:c:ient$ on the Dominican R epublic debt to
L'}e l"ni!ec Sn,es. Trujillo once settled a boundary dispute
with H.nri bY the simple e..'-pedi~t of slaughtering a fe,-
t..'mus:.mdHaiti:ins. D:nies sent him congratulations. &sides
be-ing the husband of a millionaire ss. Da,ies became the
bther-in-law of ~naror ~{illard Tydings of 1faTT,land, when
the latter married 1frs. Thomas F. Cheeseborough.
One of the lobbying fraternity's nev,est pledges is John J.
O'Connor of Ne\v York , chairman of the House Rules
Committee until purged by President Roosevelt in the elec-
tion of 1938. It is doubtful ,vhether O'Connor " 'ill be as
effective from the outside looking in as he was from the
inside looking out. v\lhile in the House, he gave a hand
not only to the utilities industry but also to the movies and
several other private-property interests.
At the start of the 1939 session, O'Connor announced that
~ counsel and in practice before government depart-
:'ents and commissions and in advising as to legislative
roaners-
..
If property interests take the ad,·ice O'Connor gave them
when he was in the House, he won't get much business. In
an impassioned speech from the floor in 1936 he said : "I
have never seen any effect a lobbyist ever had in \\Tashington,
but they are, at the same time, a nuisance to members.
They claim to do ,_.hat they ne ver can do .... In my opinion,
the janitor of the buildin g has as m uch influence as any
lobbyist who ever appeared in \\Tashington, in cludi ng the
boiled-shir t la,ryers from my city and else\\•here, ,vho often
receh·e fees as high as $250,000." At this point the Con-
gressional Record notes that there ,vas applause.
:i\fanya seat in Congress is no more than a prosperous law
firm's business-getting equipment. Some of these firms chase
clients in '\\Tashington as shamelessly as the ir less-respected
brethren chase ambulances in other cities. A kno,vin <> o
busi -
nessn:ian.o~ group of businessmen seeking some advantage
by d1scnm1natory legislation seeks out a la,v firm ,vith a
member in Congress. One of the partners is retained to dra,v
up the . ire d 1eg1s
_ des· · 1auon.
· The Congressional partner or one
. friends in c ongress th en sponsors tt.
of .his . The la,v being a
pnv1Ieged pro[ ess1on,
· .
and admittance to the bar being
tantamount to ricense for a lobbyist to operate ,vith im-
2()
,uuily, there i<, nothin ~ illega l a bout suc.h a tran\ac .
I , , < f C ,t1,,1i
·1 lwi<: i\ no law 1<:q u1ring a rr,ernoer o ungtC;\\ l<J
~WViil pi I vale I''"' 1H.C.
· 'J I . I I
,ere •~ on Y 011c Jar: he rna
f,,,
J('th//llally l('j>IC . ;Jll wI l(;IJ l IJC govcrt1 1Jl(;J JL iy '"•t
'M:lll a c,IJ( I
I . . , \lit
c,1lic·rp;111y al 111 u·re~l 1n tlie <.ase.
CHAP 'fER 2

"A Congre ssman Mu st Derive I ncome

"
IT 1s rM PROllAllL E that a single important law enacted in the
last ten years has been written by its Congressional sponsor
or its nominal author . Admini stration bills are prepared by
New Deal experts in execut ive departments. Legislation in-
dcpcndcnLly inaugurated is almost invariably prepared in
the ollice of a lobbyist. Congress maintains a Legislative
Draftin g Service which wriles bills [or committees, but it
seldom is called upon by indi vidua l legislators for assist-
ance in writin g any but rninor privat e bills.
The T ydings bi ll, permittin g the drug and liquor in-
dustries to fix the minin1um retail sales price of branded
goods, is the best ex:nnple of legislation foisted upon the
country by a smooth -running law firm with a partner in
the Sc11ate.Authorship of this measure is attributed to Her-
bert Levy, partner of Senator Millard Tydings of Maryland,
a long-ja\1•cd, setr-conficlcnt Tory, who looks like a well-
groon1ed and freshly 111assa gcd personification of Rollin
Kirby's (a1nous carLoon character, Prohibition. Tydings
shoved his resale pri ce-maintenance n1easure throu gh Con-
1\l'l'Ss11sn ridc1· on a District 0£ Colu1nbia appropriation bill
in 1037, 1\lth ough the Tydings pricc-fi.xing schen1e "'as
tlcnounrcd by the l1cderal Trade Co1nmission and by the
l'residcnt hhusclf, it could not be vetoed ,vithout depriving
the l)isn ·ict o( Colnu1bia of the n,oney needed to carry on

.
c:sst'l\tinl functions of local govern1nent in ,vashington .
,
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fron1 Co1111ecti1:1H, Mc.Mahon hnd het•n r11do1Nt'II 1'01 hh P,!'11
ht!{ $!1 ,!)00 n yei\r Nttlt1ry 111HI $!\,non t''ltp1·nsr s f1o,n
1\1,KrN~on& llohhl11~.
j11h hy Arclllhald McNt•ll, fo1 n1rr 1)1•111011 ·atl c N,1tlo1111l
(:01n111ltte1•n1nn for c.:onnectil'11t nnd n clost' fl l,•1111of (:11111
. Allof 'l'ycllnµ,R'lohhyin~ p10J1 ·1·1~ nre not as hi~ ns his pt h'<'
lndnR t•ntt'rprlst \ ln tht' spring or l!)!\!), 1ht't'c " ' "S 11 littl<'
mlnga.McNeil freely ncln1iltt•d 10 n ,:irnnd jury 1h111ht• hatl
onr thnt 11t'Vi ' l' <'tlll\t' 10 p11hllc ntte-ntion. \lnhli1 ' ot1lrinls
been on the payroll of McKt•sson It: llohhi11s slnn• 1!):lfi•
kno,vnbont It, ho,veve,-.nn<lthe-,vholt• nff 1,lt • \Vt\S lnfol'inn\l)'
getting $,:tooa ,nonth. lncleccl, it· drvel(}()l'd 1hnt I 101111•1
l'l'ren rd t o 1\\e .JllSllN'
• De-ptH'tn1t'nt for :n\ Ol)inlon ns 11,
Cummings' old la,v firr n nho hnd been retnlnrd by IVtrKt •sson
,bv ' nte-<l un1lt'r the l1,"' r,,1
'ht't~lt'l' 'l'ydinP,s shonltl be p1'0St'< ,
lieRobbin s and hnd received fees of about $1/i,ooo fro1n ,lie
firm while Cu,nminga was in the Cnuinet. Joe l)nvirs 1•1·11 , 1tl<11ng n,
n en,b t'l , or ",onp;rt•ss
,., to re-pt't"St.'nt n p1'1Y,\lt'cllt'nt
,n II governn,l'111 cnse-.A.ttornl'y Genen,l l•'rnnk. 1\hn·phv,
resentedthe drug company in Wnshington. P101nincnt Ni•W
 THE PRESSURE BOYS
24
Cummings' successor, apparently thought the p
ropose
rosecution would mere ly make another Tory mart cl
P Yrat
time ,vhen Congress, as a result of the 1938 purge
. ,\vasa1
a
ready overstocked \\•1th the m. · can ~e~erd_ ation upon finding that bis conduc t had been
,,vhat happened "'as this: the housing authority in B .
alti
more ' ,vith money . supp 11.ed b y .t I1e U n 1ted
. States Bo us1n
. ·
Authority, ,vas trying to get a piece of property for a slurn. g This a"'ency,
. .
clearance project. One parce l 111 question ,vas owned b
John Amrhe in, a bakery proprietor. Local appraisers fixe;
the property value at $12,000 and USHA kne,v that twice
that amou nt ,vas d ue to cover fixtures. Dissatisfied, the
owner took his case to the la,v firm of Tydings, Sauenvein,
Levy and Archer. A la"ryer nan1ed Cohn, connected with the
finn, asked on December 15, 1938, for a reappraisal o[
th e property. I,nprovements and damages conn ected with the
transfer to the local au thorit y, Cohn contended, had in-
creased the fair price to $106,000. The Housing Authority
thought the ne,v price a littl e stiff. It demurred.
Ther eupo n a telegram was dispatched, on January 23.
1939, to Francis Smoot, a Land Divi sion consultant in the
USI-IA. Th e message, mark ed to sho,v that it went out
at public expense from the Senate Office Building, was
sent to Smoot's home at ni ght and requ ested him to get in
touch ,vith Archer, head man of the Tydin gs firm. It was
signed "M. E.. T ydings." Smoot complied with th e T ydings
request and ,vas given a sales talk by Archer on the enhanced
value of the Amrhein property. Smoot referred Archer to
J. Frederick Imirie, another USHA official. Sometim e later
Imirie called on Archer.
By that time there had been some intimation in a news·
paper column that the Tydings firm was under investiga·
tion in connection with the deal, as it ,vas. Archer was
eager to drop the ,vhole thing and the price ,vas fixed at
2
"" coNGR.ESSMA N 1'1UST DERIVE INCOME" 5
T dings' finagling hadn't worked very ·well but it
0
$34,5° · Je said that he didn't try.
f-{1s
. 111dign . found an outlet 1n · a
b the Housing Authority
q uesuone . h Y Senate arrainst the USHA an d a 11 its · ,vork s.
. de in t e
ura Tydinus oasserted, ,vas ,vasting the taxpayers '
o h
"B t ,vhat seems to have made hin1 angry ,v-as t at
'.°oneJ•'t :as ted more of the taxpayers' money by paying
it ha n f r the pr operty of his la,v firn1's client, a goodly
s ,oo' ooo
f Io· h cou ld have gone into the coffers of T yd'1ngs,
part o \V UC
Sauerwein, Levy and Archer . .
. is undoubtedly , vashington's most adroit prac-
~d 1np . .
.. f ·nside Jobbyino-. He performs £or private industry
uuoner o I o
· lace of vantage on the floor of the Senate the
from Ius p
services ,vhich an outside lobbyist ,vould have to perform by
remote control. And through the medium of his la,v firm he
is in a position to collect for these services without violating
any 1a,v or even pricking his conscience. It is significant
that he ,vas one of the loudest critics of price fixing by the
NRA, which also im posed certai n mini1num ,vage standards
as a prerequisite to escape from the ri gors of free comp eti-
tion. Tydings ,vas able to ,vin renomination and re-election
in 1938 over the outspoken opposition of Roosevelt and in
the face of his lobbying record . Th is r ecord was made ,veil
known to his constituents by his opponent, David Lev,is, in
the course of the campaign, but apparently it hurt Tydings
not at all.
2
Many Congressmen and Senators consider public trus
no bar to acceptance of legal fees from private clients. J
charge that this practice sometimes constitutes bribery onl
th inly sugar coated would infuriate scores of influenti,
 THE PRESSURE BOYS

ro
embers of the House and Senate. It seldom is
. . lllade
.. A CONCRESSM AN MUST DERIVE INCOM~"
27
many of the Congressional brotherhood hve in gl · "t~
for any to thro,v stones. Almost all of them accept ass ho¾. bon_dholders' protective <:°~mittees with his Chicago Jaw
business, It was broadly 1numated that clients of his firm
contributions from business, and ,vhat, after al~~p~ escaped too-vigorous investigation but no irregularity was
' IS tk
practical difference? •~ ever proved.
RepresentatiYe "\Vright Patman of Texas is probabJ Senator Burton K. Wheeler of l\,fontana has accepted fees
ings' best-kno,vn counterpart in the House. Althouy :rd, from clients to augment his $10,000-a-year galary. On one
occasion he took $5,000 from a harassed \Vestern race•track
too. is a la"•yer, Patman's ho~e in Tex_as is not as conv~niht,

as is Baltimore, :.\faryland. The Texan operates in a

different ,\-ay. \\'hen the McKesson &: Robbins Com
r:
a base for a Ja,v firm co-ordinated ,v1th a seat in Con C1JI
got into trouble late in 1938 as a result of the exposu~
Cosier. investigators discovered that the firm had paid p:
man S-4.Soo to make a lecture tour on behalf of ptiQ.
maintenanee legislation and the so-called Robinson•Pa llll2::
bill.
Thi.; l2rrer was a companion piece to the Tydings meastt:
and l.il:ewisewas written into law. It forbids ,\·holesalen"'
r:::rakebige price concessions to chain stores and other qua:.
cry~ I ike the T'"dings bill, it meant miUions ct
colbn in increased profits for such firms as )fcKesson k
Robbms. P..rman admitted getting the money, but said::
ame ;o him hom a lecture bureau. This made it aU riga
He pointed om, quire properly, that some of the bs-
Lwwn men in Congressdo precisely the same thing.
.\mmg rbe members with big law firms acutely comciocs
of rbci:r \\iashington business opportnnities are fman tt-
vfler of Brooclyn and •.\doJph Sabarb of Chicago. Cclk:
aftho&4, DOl a member of the \\tap and ~feans emmni~
breaksom pcriodicaifywith a bi~ tn:~
& ht Sah..sb~ htiste:redbJ'his co1Ieagua ~ t>
--.-
._ .ld • hm:-IL W'3S rh,.. zed r:batb,e naetreUC
. -~.-
J ...
• a dtai,2ew al a ~a - ~··.
........
... to ~
operator. Senator Bennett Clark of l\1issouri got a 130,QOO
fee from the Laclede Gas Light Company of SL Louis after
his election.
The case for legislators doing a little busin~ on the out-
side to supplement their mere $10,000-a-year salaries was
once stated more frankly than is usual by Congr~man
G. \V. Edwards, a member of the ~ierchant :Marine Com-
mi ttee ,vhile in the House. In a letter to an official of the
Bath Iron \Vorks, a shipyard largely dependent upon gov-
ernment contracts, Edwards wrote: "& you undoubtedly
know, a Congressman must derive some of his income from
other sources than being a member of the House, and in this
connection I would like to bring to your attention the fact
that my secretary and myself have a company in Philadel-
phia. . . . Plea5e put us on yom inquiry list for materials
in connection with ships. \Ve have performedwork for ~ew
York Ship and Xev.-port Xews."
Joe Silverman, premier smplm Army-mpply man after
the \\"orld \\"ar and salesman to the armed fora5 ooce the
h)ankets were sold out, has been eqllilly frank about the
ueceS5itia of nndCTp>id Congre,mJCD SilTerrnll has bu:n
in md ont of ttoohle moce tha;; any orm 1-Nir.. er :aa
lobbyist in\\-~ He w,zs n:umk ttird m chz:::es r1
in~ in ms ~ralin~ r.m thr ~--cy. h.:i w.rs ...u;:E·:ni.
~ ...,.... pm R.tlph T - O"Nm. fu:::sr w- ,. ,., ... ie::-cl. die
1'x:>tricanugim. oo mspi 11..cbca.,.. ~m - die

•

THE PRESSURE BOYS
28
·n the United States" to Secreta~y
"closest man · · · l ' of\
Harry '\,Voodring. . .
Chairman John J. McSwa1_nof the House Military Al!ai
. e estimated that Silverman had made S•o,.,. t,
Comm1tte . - ,uv 0
f Army surplus contracts 10 fifteen years and ·%a
out o . b . E 1. . slletit
of it promotinrr !us us1ness. · xp a1n1ng abo
$500,000 ° . Ut th
·c1 the "500 ooo was put, Silverman said· "'•
1•1ostt
uses to wh 1 1 'li' ' • •
. spent for liquor and Aotvers and gambling with , 01
1t was . . "lln1
officers. Do I have your pern_11ss10~to do that?"
'\,Vhen he needed Congressional influence at various ti1t1ei
in his career as the Army's junkman, ~ilverman was ableto
get it. Senators Royal S. Copeland of Ne\v York, W. Warren
Barbour of New Jersey and Bob Reynolds of North Carolina
all wrote to the '\,Var Department interceding for him ll!l
one occasion.
Some Congressional reactionaries, unlike Tydings and
~ ,Patman, are content to "'ork for the glory of property with
•• '\ 10 immediate, or at least no visible, re,vard. Senator Edward
·R. Burke of Nebraska broke his neck throughout 1938 wag.
ing a one-man campaign against the "."agner Labor Relatioru
Act and the National Labor Relauons Board, the ageno
charged with the Ja,v's enforcement. Burke ,vas a corporatioo
lawyer before he succeeded in persuading th~ Nebmka
electorate to send him to the Senate under the rrusapprehen-
sion that he was a liberal. His services to organized employm
probably won't hurt his business ,vhen, after leaving !he
Senate, he goes back to Omaha to dust off his shingle. _1°
fact, his firm has done nice! y in corporate practice dunn:
his absence.
Burke, incidentally, devued a unique method of c0-0ptn'
tioo with employer organizations. First he made a speech°'
the Boorof the Senate belaboring the NLRB. Then he gtt
copiesprintedat cost by the Public Printer. Next he tetl
----------------■
"A CONGRESSMAN MUST OF.RIVE INCOME.. ~9
\r~
out letters to local Chambers of Commerce telling them
what a splendid speech he had delivered and suggesting
that copies be sent to all their members. The letters went
out in franked envelopes postage [,ee. If the local Chamber
was run, as it usually was, by red-blooded, one-hundred-per-
cent American live wires, it was quick to take advantage of
Burke's proposition. It requested enou gh [ranked envelopes
to carry speeches to all its members, addressed them and
sent them back to Burke. Postage both ways was free-
franked packages of franked envelopes. Burke's office force
stuffed the envelopes with speeches and remailed them indi-
viduall y. Burke accepted small contributions to cover the
cost of printing. The public paid for everything else.
The late Senator Copeland, while less ambitious than
Burke, was no less enthusiastic in his co-operation with the
Washin gton representatives of property interests. His spe•
cialty was the shipping industr y, which he served assiduously
as chairman of the Commerce Committee. Bigger and better
subsidies were his watch\vord, and his committee room
swarmed at any hour of the day with shipping 1obbyists.
Newspapermen covering the Capitol s,vore that they in-
habited the ,voodwork. Bart Campbell of United Fruit made
the Copeland committee room his headquarters, even staying
around for the executive sessions.
Close harmony between lobbyists and like-minded mem-
bers of Congress is not a monopoly of the conservatives.
Occasionally, their shenanigans are copied by the gentlemen
of the left. There is a recent example. When the hard•
pressed railroads demanded a 15-per-cent wage reduction in
1938, the Railroad Brotherhoods found themselves con-
 THE PRESSURE BOYS

fronted ,vith the necessity of making a strong case b E

• e ore k •
"A. CONCR ESSMA.N MUST DERIVE INCOME"
ublic. They wanted their arguments presented by somet,ie
P 0 Senate debate on the reorganization bill in the second ses-
whose name would assure front-page newspaper dis 1 • ne
Senator Wheeler was just the man. When the Pr: _ady.
/4on of the Seventy-fifth Congress, Burke and Senator Harry
. . s1 enr1 Byrd of Virginia made speeches condemning the Administra -
fact-finding board, appointed 1n the course of mediati tion measure. They spoke at different times. Neither listened
. on Pt
ceedings under the Railroad Labor Law, was conven ~ to the other. When the Congressional Record came out the
. • ed in
Washington, Wheeler assured its members and the b. next day it ,vas discovered that they had said precisely the
• · pu he
that a wage reducuon ,vould be disastrous to business same thing in precisely the same ,vay. The texts of the two
erally and of no help to the railroads themselves. The storgen.
y
speeches followed each other :vord for ,vord, paragraph after
received the play it deserved in the press, even the conse paragraph. The speech. obv1~usly had _been furnished in
. !Va- duplicate by some outsider interested 1n beating reorgan•
tivc press, to ,vh1ch Wheeler had endeared himself in th
ruckus over the Pr esident's Supreme Court reform plan . e ization.
Alleged facts and original opinions fed to the nation in
v\That the public did not kno,v was that back of it all was
Congressional speeches and over the radio sometimes can be
\Vheclcr's burning ambition to defeat Representative Jerry
traced to strange sources. Take, for example, the anti-Semitic
O'Connell of Montana, who ,vas then running for re-election article by Father Charles Coughlin in the December (1938)
on an extremely liberal, pro-labor record. O'Connell was issue of Social Justice, his ,veekly magazine. It was li&ed
rei,-arded as the logical opponent of \Vheeler for the Senate almost bodily from a speech by Dr. Paul Goebbels, ).azi
in 19-10and the Senator ,vanted to eliminate him by pre- ~Iinister of Propaganda and Public Enlightenment. Cough-
venti~ his re-election to the House. The Railroad Brother- lin's unbelievable e.xplanation was that he and Goebbels
hoods are a po,\'er in ~1ontana politics. They could help him must haYe had access to the same source material.
c.·\ttO'Connell's thro-'lt. Coughlin is one of the most po"·erful of the propagandiz-
ShortlY after 1Vheeler testified before the Board. the ing lobbyists. .-\lthou,,ah he seldom comes to \\'a<bington, he
Brod\<."t'-1.00W 31UlQ,tncedin their ne\\~p:tper that the)· 'I\W mixes into legislati,e quarrels, caUs down protesrillg tele-
opr.~ to o·eonnen·s re-election. The e..'-.:usev,as that t.t grams on the heads of members who fail to do his hidding
b.-1.i ~~ QW..q the Rnlroad Retirement .\ct "·hen he fi."!t and has been represented in the baUs of Congress off and
Oil br a personal emissary. Louis ,,·ard. His influence is OD
o=-- t.."'Clc:::ress. He !tid--beca~ he considered its pensc.1t
' the -....we but it is. still a mmiderable furtor in some gat~.
p.'"C'.ri~~ ~<:G~- His ~socs were. of course-not r;:ei:.-
•
• \\'ani bas recently been [ttding ~cch rntaial to Scn;;tca
ti(us;l i::: 6e ~ cl Tcbc--, the Brothe.rhoodi" ~ • Rohen Rqa,-.lds of );mth Olrolim. and Dt 11:iis Cha~ of
;::<!ekcrioo. o·eoo~ ..-~Cf'-
whKi- or::e •.c jt:st ~e
~-:-
~-"
- ~-
-
1f:JS ,=W:.~"t,,,'.!:1
,..
~
...
ttf!O ~ .,~er
.
l ,- • .-

" ·-
-....--.t,
~"-~
Xe.- lf eoco.
5:x0"1l?c1 1obbrmg. Ol? meri:J>,... m ~ 1cf:t.~
p:i:e:r:x-,.,.u:,,u
. sclllah:ge.. The DJII" ,ax:s m z,ic: Wt
~

~-·
.-____.I~ • •
1S .z:t.l"-
210..-- ~
~J 1.- :0 UZ:
• ..cl•&'- 'fl':z ~
-• ~
PC!S
 "<'I ;11. Wash i1111 011 lH'Wspal><·t .
,11<' often h.11cI lo ,.. . I 1 • <011 •• A c:ON(.U,
1
1.SS M /\ N M u :,;·1 1)1', lt l VI ~ I N C()M Jf,"
ico«ll i>
ird w11li <,1y1ocay M11l.1c<• cl t. S3
s11 01uknlS, l) • • • <·v('I() Sau l Jo11<·S,an <·XJWI ie11(l'd (Hthlic I dalir;u , <ouw:1t·loi, who
· •r Iii<· 1i1111· 01 111< 1111 .111
0 1110 dill ii I>
111r11IS, ~\' I( 1()Il l 1>,II • • ll() 111 has ~l'IV<'< _I •<011·s ol _«,111p,'.11i1
:•· poli1i1,,Jpa,ii<-s ,UHi piop,·ity
• , all cs,r 1111 :d p:11I ol lit<· t1111h alw.iy , i
,ubs11,1l,1 w 1H 11 • , • . • ' 111 , OJ'J,(,tllj/ ,llJOII ~, :ilso J 't h<·~11111111Jl. lo NJ>t' < iali1c· in 111inis 1cri11 1,<
1 1
r,J 111
y 11('\V
.
.\jl•l1111'
~ woitld11 ' 1 p11111 11 1
.
l 11·y)o\ol 11,' l'hc•, •
lit1llj1 10 S<·v,·1,11vi, 1i11"ol ,1,
th<' i11v<·stij1,,1l1·d, ,.111011 opoly iirv,·s1i
'
fui th<' 111
, l tr('IS a11cl;J('('t·pls all JJl('0111pl!'I(·01 <liit
0~1p,11 n · · C> itc, gatioll J,avl' ,·111111 st1·dtl1C'i1, 1.,k,· i11tlH· ,,..w,11.,11,., ill'"dli,w,
11
pi(llll\', 10 his ,, 11 ,·. 11., a11d W,·,1 <001w1,111·d ; 11 1,,,,1;11K 0111lo,
the tTp111;11io11 ol F1<·1l<-1i<k l·ck,·1 ;11ul tlw M,-1,opolitan
1 Lif<-Jn.,111a111<· Co111p:r11y. ' I IH'y p1,•p,111 •d in ,ulv,11,c,• l(•l<·a~<·s
Sc·cond 10 Jawy<·1s, jo11111a lis1s a11d p1il1lic r\'la tio11s l'XJ1<·i1i anhw<• t i11
i,; al111os1 any q11c ·.,1io111lw i11v< ·s1i;;a1ois 111 ij1,
hl :"k.
'l'lttHC ' wc•I(:p;1ss<·d0111.it 11,,·JH<>p<· 1 1i111<·to 11(·w sp,1p(•rt!Jtl(:·
have· the lai1,1cslslice· of 1hc· lo l1hyi11g l111si11<·ss. ' !'lit l<•<c·iii
Hpoud<'nls cov,·1ini,; th(· .111 •,1_
1i111'.\: l\11,i_11,·s
,111<·11;11<· l>1·
1,;
i1111in 1,;
11c·11cl1ow:11d('()IIV g tltc (Oll~tillH'lltS of a ( :ong11·s111i:111
it1ci11
10 rr·aliz,· tltat th(• V<'1d 1<I is w111 1<•11111111·w sp:qwr h(•adli11( •s
ihal a specific; J;1w sho11ld or sho 11ld_ 1101 he passl'cl, r;uJ11 ,1 rad,c·t 1ha11in co11111ii11, ·t· t<·polls wlw11C:0111,;H· ,s puts 1hc1n
cs.~rnan h11nscl f, has played iniri
1hall p<:rsuacli11g I lit· C:011g1 on II iaI.
ii,<:hanrls of 1h<:puhlidty rncn. An1ong th e 1nost afLivc r,J · fhc-rc has been a t<•J1clc11cy, <kplo1cd hy I he \Nashington
these in Wiuliing1011 is Jam es We st, form er li<·ad of Ilic publi c-1ch11io11 s 1TH·11,ror some of the New Yo1k publicity
Capitol staff of the Associi,tc-d Pr ess. Since leav ing the founh firms to poach on their preserves. Indeed, their interloping
e.4tate to join 1.he fifth, West has made a spec ialty of holdin~ also is resen ted hy Washington ncwspapcnTicn who often
1he hand~ of di,tre3sed victims of (;o ngress ion al invc1tiga, arc on the best of terms with the publicizing lobbyisu. Prin •
tion,. ()ne of hi, first hig clients was the I lou se of Morgan, cipal outside compet itors arc a nephew of Sigmund Freud
named FAward T•. Bernays, who laun ches an institute at the
which retained him to keep its publicity dignified during
drop of a hat, and Carl Byoir, who has been cashing in on
the munition~ inve!tigation. The Morgan partners had been
the Whit e rlou se contacts he made as publicity agent for the
dinre1~d by the midget incident, which occurred during
balls staged on Presid ent Roosevelt's hirthdays Lo raise funds
the earlier inve,tigation of banking by Ferdinand Pecora for the Warm Springs Foundation. Starting as publicity
a, courucl to the Senate Banking Committee. A circus prc11 agent for a Jlavan a race track, Byoir branched out into the
agent ,at the midg,-t on J. P. Morgan's knee and the camc~a -. business of making Machado, the Cuban dictator, seem to
men let fly. The rerulting pictures showed "Young Jac~i he somethin g other than a cutthroat. That led him into
expreMive faa rc--.413tc-ring a conflict of emotion~urpruc , work for Nazi steamsh ip Jines and finally to Washin gton ,
amusement and embarras,ment. It "humanir..ed" the head whc-re he hu recently tried to drum up public sympathy
of the firm and set a vogue. Half the big shou in Wall Stretl for the embattled chain stores. Bernays meanwh ile has been
wanted to he human ized. But the Morgans didn't much !CTVingthe Giannini intere sts in co-operation with Ri chberg.
care for it. \Vest got them through their second ordeal Washingtonduring the New Deal Administrationalso has
unmidgettd.
 THE PBESSUBE BOVS
been ,·errun 11.'ith volunteer kitchen
0 •
cabinet.eer S Wli() •
Jobb~istS of a sort. T he most pers1Stent of the~ is B<:<ili
Baruch.millionaire :'.\ew York financier, old-time De t11ar1
chairman of the \\'ar Industries Board under \Vi1·- m,"-l,i
uun an4
great respecter of the rights of property. At the start • wn with the understand1n~ that tloc Rl·C w<,uld r<·ut it
ev.·Deal, he placed some of his boys in high places nof ti-,.
::-,;
'RA ,I . . d ' Olahh
_,,...Hugh Johnson, :'.\ a m1n1Strator, an George Peck, AA·
administrator. Johnson eventually was kicked out and p A
"-as ~eked d~v.nstairs ~o the_ Export-l1:11po:t Bank. But Jo:.
son still reta1ls Baruch s adV1ce freely 1n his synd icated new~
paper column and Baruch has become involved with tht
Texas gang. Jed by \ 'ice-P reside nt John N. Gamer and Jes!(
Jones, "·ho have been busy obstructing ,vhat they haven·t
liked about the Ne\\' Deal for several years .
T he Reconstruction Finance Corporation under Jones bas
been receptive to lobbying pressures. Bernard B. Robinson
admit ted to the Black Committee that he made a businessof
lobbying the RFC. \\Then Congress, in response to the com-
plaints of small businessmen that they could get no bani.
credits, vot ed the RFC a large authorization for small loans.
Jones virtually nullified the legislation by insistin g up<>n
about the same kind of collateral a bank \\1ould require.
Little businessmen approaching tl1e RFC \\1 ere asked why
the)' did not get their loans from banks. If they replied that
the b.'\nks \\1ould not accept their collateral, the RFC turned
down their applications too. The small loan program be-
came a standing joke to employees of the agency, many of
\\•horn are Republicans holding over from the Hoover Ad·
n,inistration.
There 'l'IIS RFC n1oney, ho,vever, for favorites of Jon~s,
In 1938, he made a loan of $5,600,000 to Colonel Y.Jor~uo
H ackett, former head of the Public Works Administrauon
u nder Ickes,and Angelo Clos, former director of the p1iVA
'
1
A C{)NC;KY.f'>',MAN Ml ,''-, J JIYt-lVJ.• , fl, ',,l>tAY, ,, 1,',
Ho~ing Division, a11 OJ~ani#·t~ ,,1 1lo,:..J,;,l~y••flJ• lluildiJJ~
nllration." 'I he two men f>r<K<-<-<l•·cl v, •hr,-,
- ~ 1 ~fl lJ 11
JU•
Cort'- ·
building on the site of the_c,ld Mc.l,t-anruan,i,,11 111W:tJ>loi1tK
when completed. Jt wais conservatively 1;~1in1.att:d that tit<:
two former officials would rnak<: 110le\, tlian a $ 1,<><><>,<><><>
profit o~t of the deal. ·rhc:r<: wa~n_c,~hi11~ <.<Jrruptahout the
transacuon but as a case of Cavo11ttsm1t waii llagrant.
Jon es has always got on well with big husinc~~and iu
lobbies. So, in fact, have almost all other New Deal higher-
ups except Ickes, Secretary of Labor Frances Perkins, H.ull,
and, on occasion, Secretary of Agriculture Henry A. \"lallace.
Even Wallace filled his department with food lobbyists and
bounced out Jerome Frank and others who refused to co-
operate with them. Secretary of Commerce Daniel C.
Roper got along like a brother with the pressure boys. Harry
Hopkins was regarded as the archenemy of business when
he was WP A administrator but he managed to win part of
it over as Secretary of Commerce.
As for the leaders on Capitol Hill, they probably are as
susceptible to lobbying influence as any ,vho have ever
occupied their positions. They are Southerners almost to a
man and share a sectional bias against the President's liberal
policies. It has been no easy task for the man in the White
House to keep them in line and he has not always done it.
He has been amazingly successful, ho,vever, considering what
he has had to ,vork ,vith .
5
The lobbyists of the left throu<>hout the Roosevelt Ad1nin-
• • 0
1strat10n have been able, sincere and idealistic, but for all
th at, amateurs. Congress has never taken to them. But they
have had the tremendous advantage of seeing eye to eye
 THE PRESSURE BOYS

w1'th Pi·esident Roosevelt. They have been his advi·seQ

"A CONGRESSMAN MUST DERIVE INCO "
ME 57
occ.ision they have been able to carry his orders <lllq coininittces what he, as spokesrnan for thousands of mau-
011
'p•tol 'Thoiuas Co1-coran and Benjan1in Cohen. Who t() Iii, production workers, .~•.ante~ d~'.lc. But when the reaction
C,, • ' • , . Start
. \
-"'~ _ v
""rillin\l
...
1t~1slau,·e
...
d1-a£11ng
..
tea1n.
_
probabl)
..
• w"r ~
....e ltn.set in after 1hc 1937 1eccss1on, he was wise enough to sec
, ~ t\)~$ clt,·tivn the n1oot. 1nfinen11al 111en1n \\ 'a.st,· tU
that his iullurncc was not what it had been and to cuitail his
t,t, ,, ,1n!l\o
,,111 ~,,k• the \\ ' hite l lt,n~e. ~lust of the_ t;~I\ sto1·iesof th~ lobbying activities. Behind the scenes, n1uch of the work he
e,pluits ,ux: ll 'U<', 01he1: h~t·1·,1I -·~d11Hn1str:uio11oAkia\; had previous! y done to stifEcn the backs o[ the liberals in
\\ 'i\\i.un (). Dvugl.1s 1111nlIns ~•ppo1nt1nent to the Suprelll Congress was carried on by Eli Oliver and Gardner Jackson
of Labor's Non-Partisan League and Lee Pressman, counsel
C.ourt, J.unes Landis, " ·ho preceded Douglas as chief oi 11i'
SEC, Ray1nond ~Ioley and Re.x Tug"·ell in the early da; to the CJ.O.
The President has relied principally on the lobbies of the
before they left the Ne" ' Deal, the late Herman Oliphant left for support of his measures. He has had little choice.
of the Treasury, Solicitor General Robert H. Jackson 1!a:r. , ,I They are the only allies he can trust. He has been knifed
riner S. Eccles of the Federal Reserve Board, Lo,vell ~Iellett, in the back repeatedly by some of his Congressional leaden.
former Scripps-Howard editor, ,vho became clue£ of Ui( The big angels of the Democratic party haYe dese:ned him.
Emergency Council-all these have been influential in Ult Only the little group of liberals has stood by him through
Administration and, in a vray, lobbyists for the liberal calllt. thick and thin. Naturally, he has turned to them in the
Charles '\Vest, a former Congressman from Ohio, firstai pinches. They have done their loyal best, but oYer the long
assistant to Governor '\\'illiam I. i\Iyers of the Farm Credit pull they have been no match for the lobbyists of business
•.\.dministration and later as Under Secretary of lnteri01, and industry .
aaed openly for a rime as a '\\'hite House lobbyist at !ht
Ctpi.tol His ad,ice often ,,,as sound, as "·hen he persuaded
Ho= leaders against reson to "gag rule" in some of tht
t:2.."fyx- Deal legislatiYe battles. But criticism of Admin-
is.J->.J:mlobbying became so intense that \rest's effectivent11
was s!iort med. Assistant to the .Attorney General Josqt
h.f'm2D. an Ohio la~ intensrly loyal to the President, al;o
franlly lobbied for the \\rute House at the Capitol On •
nrious occasin11S he ~-as ao:used of trading appointments~
mt.es, but his direct method made him popular "ith 1~
1ators and he ~-as probably as useful a liaison man as tit
•.\dministration e\·er had.
Outside the .-\dministration, too, there have been ~
liberals with power. JohnL Lewis boldly told c.ongrcssioG>-

•
 ~--- ----·
•{ETHODS WERE "SECRETIVE, REPREHENSISLE"
,. 39
easily understandable issues are raised, as they were in the
campaigns of Jefferson, Jack~on and Lincoln. And even when
the electorate does express '.tself at the polls, its mandate is
CHAPTER 3 often Jost in a maze before It can be translated into enforce-
able Jaw. . . . .
In the beginning, It ,.,as a matter of simple bribery. The
nfethods Were "Secretive, Reprehensible' ' ' ding fathers, having but slight faith in democracy for
f oun 1· d 1·
all their high talk o~ equa_ity ~n 1be:ty, left the states free
IT IS A testimonial to the faith, the tenacity or the creduli disfranchise their ma ionues. This they proceeded to
of the ..\merican people that after these 150 years they s~ ~o usually by predicating the right of suffrage on exacting
cling to the forms-without the substance-of demOctatic p;~perty qualifications. The South's grandfather laws and
go,·ernment. Since the founding of the republic, the delll(). literacy tests came later. vVhen the first Congress met in Ne,.,
cratic process has been pen·ened tO a greater or less degret York in i 789, it "'as composed ,vholly of property owners-
by cunning and po"·erlul minorities bent on sen ·ing their representing other property owners-apparently eager to sell
own int= The ideal of rule by the majority for the out to a third group of property o,rners, the merchants and
rood of the man,. has been illusory from the starL It remain;
~
speculators of 1{anhattan.
SO DO'lf •
A}e.-randerHamilton's plan for funding the national debt
.-\:nerian &oocr~. assuming th.at it surri,cs the W..ft and for Federal assumption of the state debts pro,-ided
0:. cc:=.oc°..z! iioo!o_;ies currently e.ngulfing the l\"Orid, wi!J a field day for the money changers and for itchy-palmed
.--.;r,r;;:'.X :.3 be !lr~ ;nn for.:t. small pan sub:sran~ for 1 legislators. •.\lthough the states were jealotIS of their inde -
lx:=.., :±,.,- :-.:,cc:::ie. ~ :or bearing democracy ha-re u- pendence and the Hamilton plan was offensive to a sub-
111'2"$ JS!Ll · ~IS in mt! cachi.ncTrof demomt" stantial segment of the public opinion of the time, it \\TaS
CS::'; S.:r:::,o:!,T dlle ..::..:~~ rn-c- caxcb the hare. but th3.t cz• adopted by a narrow majority in the Senate, and, after much
pulling and hauling, by one "ote in the House. There ,\TaS
~ s::ii: 2. l..,:~ 11'2J~
X.x •"•.:r; \=:-0-, o-s#i:...C.< is reu:~•6'<ing or~ a rumor that Representative Vining of Dela" ,-are sold the
r:!1 O:! .:r coc,s,z, i, ~ ~ c:;pon:mt gains in ctm;: deciding .me for 1,000 guineas but SenatoT \Villiam "\lada y
~ ~ e\ecrxc cl. Scmrors 111--.as J>-"Obahly the ~- of Pmlls)l,aoia <loubted it. In his journal he noted the guess
C5l 11·"', iO" i::l rl:ii .:.<DO.i/Lil1D~ .:ndm} dimimtioo of p:£ that the WU: could have been purchased "for a tenth part
as hn is ral::7& - .c. =.jcx ~::n'"burion; disard °'" DE of the snm.." History affords no conclusixe proof that \rming
Is e crl il5'Si o oxGr~ e,,., bdpcd. ~ out but much e.idence that if he didn't. either his
-:s..2S um Bite- ~um in hls ~ srorlic:sci. acumen was subnormal or his morality e.""ctraord.inary.For
._tn s9:m i.Ole<;;:,it'Lt .. ~~of. die Eniml So.tesiE t:Janyof his colle.a.,oUesmade the most of their inside infor-
:a&le- "i•P\S its will m1Jm tbe oa:asiom whffl b.~ llRtionon the colonial securities market. joining in syndi -
yS
 THE PRESSURE BOYS
"SJ CRl'TIVP.,
at the ne,vs of Ii r,{ETHODS \Vl!RP. RPPRP.llF..NSIBt.£•• I
cates which chartered fast ships to be 1
,vhere de tiallli). ctonhimself n1a<lea· praLticc of "lcnding to mcmbc
.,
ton's success to other seaboard cities Pre P cu <ll
· 11 ·1n I11s cstablibhmcnt a d . rs
be bo ug ht for a sm all fra cti on ( atcq Jos t the ir ro s n 1>a1an c,n g h'
certifi cat es co uld 0th· Cir w110
11
for pro fit on the sid e.
redemption va lue . budget by lobbying
e the smelly Grant Adm1 . nu . on
. tra11
in that first C After the wa.r cam
T he job of Representative or Senator .
torious Sam Ward h o de-
ng for som e of the forebears ongrc11 scandals. By thi s tim e ' the no
,vas a ,vo rth -,v hil e thi · If "K 1ng o f the Lobby .. and •Co w •
. Members whof !lit scribed h1mse as ' me 1lUS
Daughters of the American Revolution er~ ll on e o f the creato rs of the Whisky R'1ng, werear-
market place reo~•we en de
unfamiliar ,vith the ,vays of the city ce a \Y '
to ha ve Co ng res sm en vo te the way business intcr«:$ts
. . an. And it wa., th ran gin g
1nsrrucuon from the traders of Manhatt wanted them to, not the ,vay their co
•· expected
nstituen...,
cto rs ,vh o ,ve re bla me d for the ,vh ole sleazy pert O!t
instru
s not been ,vhoU onn. them to.
ance. "\iVithan ingratitude ,vhich ha
characteristic of politicia~s in more
me!:
recent times, Bribery on a gra nd scale as a method of
reached its ultimate in the Credit Mo
beating democra
bilier scandal of t:
ng res s de cid ed to mo ve the capita l to SOIJlt stock company orig-
of the fir st Co
of Ne,v York. But early seventies. C~~dit ~!obilier: a joint
sin ist er inf lue nc es been taken over b
ot her cit y to esc ap e the
bank of the Potoma inally chartered 1n Pennsylvania, had
,vhen a site ,vas chosen on the northern ors of the Un ion Pa cif ic Ra ilro ad to finance railroa~
dir ect
of George \V~ grants from Congr~.
legi~lators and thei_r ~iends, informed construction ,vith the aid of generous
took to turning honest about $23,ooo,ooo,part
ton s plan for the aty s development, Its o~rations ~etted a cash ~rofit of
as in Di str ict of Co lum bia rea l-e sta te speculation. fou nd its wa y int o the pockets of Con-
guine of wh ich ad mi tte dly
Jackson ,vas figh~ Grant Administration
A fe,v decades lat er, when Andre,v gressmen and pe rhaps into those of
ctice of bribery started campaign of 1g 72.
the Bank of the United States , the pra officials,as charged in the Presidential
the campaign approach- cited testimony that the
to take on refinements. In 1832, ,vith A Congressiona l investigation eli
l W eb ste r ,vr ote Ni ch ola s Bi dd le a plaintive DOit sto ck ha d be en dis trib uted among Con-
ing, Danie comp an y's va lua ble
ha d not been "renewed « good." Re presentan·ve
rem ind ing tha t his "re tai ne r" gressmen ",vhere it would do the most
t "it may be wellto those who followed
refreshed as usual" and suggesting tha Oakes Ames of l\.fassacllusetts, one of
become a retainer and statesmen, ,vas shown
send the usual retainers." A bribe had Webster in the succession of codfish
ative lobby was alrcadt ck. He and Ren
the nomenclature of the modem legisl to have he lpe d wi th the dis trib uti on of sto
"
.
in use. resen ta ~v · e James Brooks of New York, one of the recipien
Civil War, Pendlt-
In the era immediately preceding the of Cred 1t M0 b'J 1 'ier securities, ,vere censured by the Hons
Avenue became the er of Congress at thz
ton's gambling house on Pennsylvania ~u t no t un sea ted . Al mo st ev ery me mb
asable votes. The tbia lune ,vas accePti ng passes and other favors from the railroac
recognized clearing house for purch
le Co ng ressman to winal so there ,vas a dis posin . .
subterfug e of all o,~ ing an am en ab on to be lenient ,vith ,vayward co
do dge pcrsisld 1 ther.
eagues ,vho went only a logical step fur
int rod uc ed . Th is be ,vh isk ere d
poker 'l\.'aS
perhaps even lalO
down to the Harding Administration,
,JM
. ..
, ,Aj.
,., /,' l ' Jll}J ),1 v .. , , , ,. . , ''''~$ 1~ 1 ., , I VJ',, K 11 ,,K.,
' ~IIP.N6 ll) L'Y,"
4
II ly ran1<· hi1-1hcr tlnn in v·1 1,
., , ,,11c•11t s
11ic·y • 1 1 ' n 11g's day ti
l • a11ii;c·10 keep 111r111hc·r8 of arnall c . . - icy
c "" Ic ' 111 omnnttees 1n their
, , ,viil •l, 11111 1 1111• dlir •II 111r1horl~o l ( :1(•dll Moh!Ht·i \
1 111111 11 vcMIflorkel s.
11111. ,1111h, I""' o'NN ,,, l 1ilh11•11r11111c:ollHl!'"" 'l 'l , , 1r Inst ~p 1•c1arular cxpoN<- of co1n ,pt I 0 I' IJyang
. .
111111111111 ' I(• ' 11 . . practices
.,. no r 100~, con-
111111,,11 11111vr• p,11ilr•N1111rldlNtlll,111(• pilKKt'"1 • 111th<' New Vo1 I<.111 sul'ancc 111vcsti"·ttio
1,1II 1,1111 I• •• 1111 • lllt ,111c .
, •., , ,1, ,IIN1il l111d1H1
, ,,1 ~111 , S1•1111t111I, S. ~l 0 11111, rlilllt 0 ,cl 1,y a yn 1111 ii; sa 11cly-wl11Rkcrcrl lawyer uantncl ;!11. I· 8
11 11111111 cIlle 11 ' I 'I ' ~ I('(I lo I II!' Cll :l('Uncnt or ' . '' ,,r c:
th, • 1:111111111• ( :,11111111it1 •r, lc•:1111li1f1l11 th r 111lilKI0111 I ,
l',VIII
I ~ 1I t1f{hC'H, 11
m,,11y &lat<,
1111111 111
11 ,,1
• ,,,,, It ,lt,II iiu • ,,•• 1,t.-111 the• l'c•1111~) •lvt111lt1l{ nllt•u,111 IYni
IClI
i 1iyco lll•ol l,1wM,llo wcvl'I',* 1hcdcclaratio11t lnt" l ll •
., , i , •• , ' 0) >y1ng
1 ,, 1i1hh,, , 11\,•1e•d ,, 1111111,111 1,1 11pp11li1111 1n 111111l11rl' 1, II , , 1,11 r \V,INWI 11(1'11 1110 (,rOll\lll 8 C0118lltution in 1877,
111
111111 , tli<' lohh yiNIK' 1·ri,tlKt rado_11 lawR o[ MaM,1diu&clu and
,,u 11 ,, rl 111111 ,1111wltrthr1 ''111r1r Wr\N1111y l'lll'lhN•
11 1111 1111 11 11111
,,!\ , , 1. 11,
1 1 111 111
, ,lr~ht•d," I ,11hli,•l11f1ht'1'111111 • Nil , rl\11r1 I thiit I \VIN1
0

11 Wl'I<' 111 t'llt<'l p11or lo the investigation, "fhc

'111111l
" i°11•1M\II~ fl''"'"''
1111111• ~r, " 111111,, It 11p. 1\t'II \11•1\1•y 110,n~, i wr l vr Mlllt t'N which Ntill h11vt· 110 1i1wft1·<.:lat
lohhyinl',111r: Ark:111N11N,
i11 g spcdlica lly to
c:olorado, l)c;lnwarc, l\linois, lowa,
,kt ,,tl",1hlr \\ ',,~hlnl\1111111111r~1111111lr111, 1rrn11lr1I Milli\\' ol
111 Nrv,,t111, New Jr1~ry, Nt•,v Mexit:o, l' cn11sylvania, Vermont,
, ht•h '""' h111 I~ h I h Is I r111l IIl~1·1•n1·rs,
"~ , ,•ti111r~ ," hr wn1tr 1111\rsrdhl11p,thrlr 11101'11.1 11pe,. \ V,ashinµ1on nnd Wyo1ni11g. So,nc or these have a certain
1111 1 of pro11·c1ion nncler very gcner11
l "corrupt•practiC'cs"
11."( :nn)\tr~s,111'111nr huh11't'1ltl 1 v1\lt' U)'t' 011 a l'rrtnin 1 11
11101111
11111 provisions in their constitutions.
,nt\1s111r: sn1nrtlntt's111v,,,r no. 11111 1 h oftrn Ql'rn1·s thnt wh~n
In ncl<lition,there are rourt cen states ,vhich rely solely 011
h1hh)·b1 ,·,n111ntn111l..r 11nin1prrsslon ()n th t'n\, ()l\t' WI\)' or
11 "corr11p1 -practiccs" provisions, directed specifically against
a1,othr1\ tht'}' will rn<lr11vQrt<) l..erp tht•n, inVI\) ' fron, the
lobbying, for their protection. These are: Alabama, Arizona,
l 1011st'wht'n tht" roll is 1·alled." Unt. l 1 Qore ,,,11 s inclined to
l.onisinna, Michigan, Minnesota, Missouri, Montana, North
tal..e11bro11cl vit'\I' of the thing. "'\'h o can bla1ue n Congress,
Dakota, Oregon, Tennessee, Texas, Utah, Virginia and West
111an,"he asked. "fo1· leaving the bad cookin g of his hotel t
Virginia.
or boar<lii~house ,vith the absence of all hon1e comC01·ts, to
The remaining twenty•t\vo states require professional lob-
walk into the parlor ,veb ,vhich the cunning spider-lobbyist byists to register, usually ,vith the secretary of state. This
"'eaves for him?" ?rovisio~ is designed as a publicity weapon to bring lobby-
Woodro,v Wilson, as a student of government, long before ing out into the open. Sixteen of these states require that
he became an active partitipant in politics, complained of lobbyistsor their employers submit complete financial state-
con·uption by lobbyists. He blamed the committee system, ments ,vithin a specified period after adjournment of the
under ,vhich most important legislation is framed and given . · Mary1an d goes a step furt h er, giving
legislature . . the governor
its original impetus, for most of the skulduggery . He argued · a financ1al
authority to r equire • statement from any or all
that whereas business lobbies could not buy up or otherwise i
• Editorial ReseaTch Rep01"ts.
control the entire membership of Congress-by this time
.pl r,,fl ,,'l')I OOS \V1'.ltl ' ··.,.•c:u.1, 11VI•, ltl ' l't t l lll ',N Slt \l 1,"
. ·• 1ll
cy opp,11en<ly c11n,· htRh,·1 th •111 in v·111111
t I1
. 1-1'sday ti ,
l'nbli,' 1,.-, 11t,-i<,nat tht' llirt•rt 111t't ho1ls of l ; 1 t\li1 l\lob'J• c()ul<Iarr.1nge to kc,•p nu-,nh,·1 s or sin.ill ('On\1111
. ll.ct•s icy
·.1n- thci,
1
'' fl• ltt vest pockets.
,nt ,n,>1'<' frills ,,n tht' l'"'rt'SS ,,t 1n 11c11t·1ng Congress. 1 The. first spectacular t·xpos(-of con , I > lying
. p1atuccs
.
I . . l 1· .b he ., . . . 1111 011
\'.1ilnxtdscontinurd 1_0 ~I\ e rnrtll.'S an1 C ISll'l nt e passesb111 ca01c 111the Ne,v Yo1 k 1nsu1 ~nee . 1nvcstigai·ion °f 1905, con- 1

di@ntinued stO<'I-. d1str1bnt~on. Srnat~r J..S. 1\(orri \\, chair.
nl:tll of tlie Finance Co1nnnttee, learni ng 111the n1idst of
speech mat the president of _me Penn syl~ania R ailroad wa:
in the lobby, offered a mouon to appoint a co1nn1ittee lo
"-a.it on him and find out ,vhemer "there ,vas any further
legislation he desired." Lobbying became so refined tha, I
"persons of the gentler sex" took it up. Ben Perley Poore,
indefatigab le Washington correspondent, recorded some ol
their methods in his reminiscences.
"Sometimes," he ,vrote in describing their modus oper-
andi, "Congressmen are induced to vote aye on a certain
measure; sometimes to vote no, and it often occurs that when
a lobbyist cannot make an impression on them, one wayor
another, they ,vill endeavor to keep them away from the
House ,vhen the roll is called." But Poore ,vas inclined to
take a broad view of the thing. "Who can b lame a Congress
ucted by a youn g .sandy-whiskered lawyer n:nn"d , Cl1ar1cs
d
.,, Jiu ghes. Tl 11s 1cc1 to • the cnac11ncnt of n,any Slate
EvH 05
lobby-control la,vs. .Ho,vever,
. Gthe declaration that ..1o bby1ng
.
is a crime" ,vas 1vr1uen into eorgia's constitution in 18
. , · . I 77,
and the lob b y1sts reg1strat1on a,vs of Massachusetts and
,-visconsin "'ere in effect prior to the investigation. The
twelve states which still have no la,vs relating specificallyto
lobbying are: Arkansas, Colorado, Dela,vare, Illinois, Iowa
Nevada, New Jersey, Ne,v Mexico, Pennsylvania, Vermon:,
Washington and Wyoming. Some of these have a certain
amount of protection under very general "corrupt-practices"
provisions in their constitutions.
In addition, there are fourteen states ,vhich rely solely on
"corrupt-practices" provisions, directed specifically against
lobbying, for their protection. These are: Alabama, Arizona,
Louisiana, Michigan, Minnesota, Missouri, Montana, North
-
Dakota, Oregon, Tennessee, Texas , Ut ah, Virginia and vVest

I
man," he asked, "for leaving the bad cooking of his hotel
Virginia.
or boardinghouse with the absence of all home comforts, to
The remaining t,venty-t,vo states require professional lob
,valk into the parlor ,veb which the cunning spider-lobbyist
byists to register, usually with the secretary of state. Thi
,veaves for him?" ~rovision is designed as a publicity ,veapon to bring lobb•
Woodrow Wilson, as a student of government, long before 'I 1ng out into
· th e open. Sixteen of these states require th··
he became an active participant in politics, complained 0£ lobbvists
,. or th e1r · emp 1oyers submit• complete financial stat'
corruption by lobbyists. He blamed the committee system,
. ,vithin a sp ec1'Ii ed per10
ments • d af ter ad1ournment
. of tl
under ,vhich most important legislation is framed and given 1egislature. Maryla n d goes a step f urther, g1v1ng. . tlle govern,
.
its original impetus, for most of the skulduggery. He argu~d authority to require • a financ1al . statement from any or ,
that ,vhereas business lobbies could not buy up or otherwise
· · 1e • Editorial Research R•po,-ts.
control the entire membership of Congress-by tlus un

TliE PRESSURE B OYS
44
lobb yisu and their employers. whenever. he belk
. ves tht~
have been improper expen d 1tures 1n connecuon with . t
bill submitted to him for approval. •n)
The sixteen states requiring regist ration and financi 1
. I d. K a tt
ports are : Connecticut, G eorg1a, n 1ana, entu cky, 11 :
land Massachusetts, Mississippi, Nebraska, New Hamp hal).
' . · S lte
Nev, York, N orth Carohna, Ohio , Rho de Island, South C '
. . Th . aro-
lina , South Dakota and '\iV1scons1n. e
. six requ
. iring reg·istra.
tion but no financial reports are : Cah forn 1a, Flori da, Idaho
Kansas, Louisiana and Oklahoma. ' of the milit ary, adjour n ed to Pr inceton , where it would be
But the re still are no Federal statutes again st lobbyin• ,
except laws requirin g regi stration of practiti oners befor:
a fev., executive agencies, including the Maritime Commis-
sion, where red tape has been applied to gag and defeat the
statute's plain intent. Congress itself can be lobbied without
restraint. Congressman Ho,vard Smith of Virginia is pri- '
marily responsible for this. Senator Hugo Black's bill requir-
ing lobbyists to register and to state the sources of their
income was passed by the Senate in 1936. But ,vhen it went
to the House, Smith insisted upon amendments making it so
drastic that it was finally defeated. Under the Smith bill,
contributions of as little as $10 ·would have had to be re-
ported by lobbyists and their organizations. This ,vou_ldhal'e
affected the To,vnsendites, Father Charles Coughlin, and
the American Federation of Labor, ,vho joined forces in
opposing a conference report on the compromise Black·
d influenced by the demands of und erdo g citi zens. It is th<
Smith bill after both the Senate and the I-louse had actc .
The result ,vas that the llouse rejected the conferen ce re·
port 263 to 76, as Smith, being an experienced legislator,
should have expected. 5 10
There have been sporadic attempts from the very Lart 1
. scssc(,
I 1
in'1uence Congress by mass p1·essure from t 1e t ispos .
but fc,v of thenl have been successful.The first occut'red
p
-,d·rr!ODS
.v•µ W £ R t. " s r.CRf.TIVE _,, R f · l'R"lr. l r.~~I
-,~ " . P,.LP' '
,
A ..
while the Contin ental Congress was assembled in Ph"\
1783 d d . . 1 a-
delphia . It had vote to _(;mo1"h ze the Revolut ionary Army
and pay each soldier cer tificates equivalent to three months'
wages for every enli sted_ man. T ~e Army was not satisfied,
and on J une 21 , according to £has Boudinot, President of
the c ongress, the legislat ive body was threatened by several
,
hundred soldi ers of the Phil adelphia gat rison with fixed
bayonets- General St. Clai r_persuaded th~ demonstrato rs to
disband, but the Congress, instead of bowing to the demands
fe Erom such pre ssur e.
sa In the 187o's and 188o's the Gran ges and other farm
groups frequently storm ed state _capitols demandin g agrarian
legislation and curbs on th e railroads. T he most famous of
the mass-pressure movemen ts ,vas the march of Coxey's army
on "\IVashin gton in 1894. Several leade rs ,vere an·ested and
the army ,vas forcibly disb anded. Later came the descent
of the Bonus Exp editiona ry Force on , vash ington, in the
Hoover Administration. Hoo ver and the then chief of staff'
General Douglas MacArthur, unh eroi cally dr ove th e sold iers
out of the city after burnin g their encampm ent. It ,vas years
later that the bonus finally ,vas paid. Under th e Ne ,v Deal,
soldiers, farmers and the unemplo yed have staged mass
demonstrations in Washin gton at various tim es, but none of
them has been particularly successful.
. Congress may be temporarily fri ghtened but it is se\d o1n
well dressed and the ,vell heeled , ,vho can afford to ent ertain
. d have the mo st e rrcct on 1eg1slat1on.
who . . They can con,
111 roves b t J
. • u t 1ey arc never called a n1ob and n o one eve
con,pla111s
the . that ti1 cy arc tryin· g to intimidate Con gress. o
conttary
there · , 1 ' ,vhcn tl,c poor sta ge a 111:i ss dc1nonstratio1
111 18•1,vayssonic br ,,ve }',cp 1·cscntat1vc
• or Senator to 111:il
 TH & PRESSURE BOYS
10 bfJ>;THODS W£R£ "Sl'CJU· , ·1 I VP.'' V.Y.l'"" •
• ,-.r,Hr.NfSlBl .:P." 47
,. Con-rress-cannot-be-frigluened speech . I-le
th<' stOC"- ·es "and the mass demonstrauons
. usually h slia.lliti Mulhall's scatter-gun . ,,f
•
!us co11eagu ave .~ • d " · ti w .or1t,·gn1y
<h,,rgc·~ irnl'uun,-d
the des.ired effect. many oflic1a1s an. h' member~ of Corwr,·" .., . th-a L 11wy c;,u1d
reverse Of
~tt 50
,,ot be ignored.
. dW 1t ,nI twoIf week~.thl-rc·f<,H: ,.'irwav, 1
· • 1l~tUJ r, i
lark appo1ntc a .sc. cct OUJ!<: <.t>rnrniu,-,.,, 1 v--vn1 uu,t,--r
3 C
in aJ·ority Leader F,n,, · J. (;i,rrc•tt, 'J ,-rorH·\•,·r·
'" I>''rfl'"'
rat, 1,,
investigate the whole. s,,n y ~t,,ry. ' f lw ,. , 11 111110,-, 10'J111t'l
. 1lf\fJ•( 1
The lir5t of the . series of modern Congressional lohh four month s, filled i1xty h<,unrl v1,lurrlf•, wiil, ,,..,1I rtt<>Hy, ~ Tit 1
• , •
invesci2at.ioos. sho,,·1ng up the methods of the whi«:"CllllaT laid bare an almost 1ncrcd1blc
. • • bt\V,ry of int"""',._, •, •HI 1-IJIII< 1~
lobb.;;ts, l\"l!S conducted in the House in 1913 when \V~ ·on, brib ery and soltc1tat1on
. 1,y tlw ':-..:
' A \1 • ·•
" I,I ~II
, , IJ1''\ \1 HI
U
row ,,· ilion complained that pressure groups were mak· · lobbyists in the capital.
boodle of the tariff laws. The inquiry disclosed that :~; Though Mulhall's printtd articl<: wa, fr,unrl 1,, 1,,. ,-x
~ati onal Association of )Ianufacturers
. bl ..
,vas engagin",, in
. travagant and exaggcraLcd, the (, arrcLt <.<,rnr11itU,<•
rli·finitdy
... - and "repre h ens1 e attempts to control or•,,an.
M,......-eti\·e" eJtablished that:
ization and personnel of House com mittees, usin g "que5tirm. (1). Mulhall was employc:<land u~ by 1h1, N.A.M. and
able and disreputable" means of defeating members whodi~ N.C.I.D. "primarily for personal lobbying bcUlll'I<:1h<:ybclit-vcd
not approve of its palicies, and expending "large sums rA him to be a man of c-xtcndcd :ic,quaintan(..(;a11"'"IIRq,r,•'!l·nla
money" to influence legislation . The committee also showed ~ivesand S~na~orsand_ tha~ th.•s_acquaintaru.c u,uld 1,c I apilal
1zed upon in 1nfluenc1ng 1nd,v1dual mcmhcn in their 1Jlfu.ial
that the N.A.)i. and its lobbying offspring, the National
acts."
Council for Industrial Defense, were trying to smash labor (2). Mulhall, wi~h the kn~wlcdgc .an~ con11Cnl
of his employ-
unions and grab the special privileges afforded by high ers, no_lonly est.abhshe? a pnvate off,cc ,n the Capitol iucU, but
also hired I. M. McM1chael, chic£ page of the Ilou~. at $so a
tariffs, month, to transact N.A.M. business.
The spark ,vhich set off the 1g 13 explosion was an article (3). The N.A.M., through Mulhall, obtained advance informa-
on June 29 of that year on the front page of the now defunu tion on proposed and pending legislation from certain members
New York World. The article was signed by "Colonel" of the H_ouse, including McDermott and Republican Leader
~fartin M. Mulhall, ,vho for ten years had been chief lobby· John Dwight.
(4). The N.A.M., through Mulhall, innuen ced appointment
ist for the N .A.M.'s Washington "contact man," James A.
of members of House committees and subcommittees, in at least
Emery. Emery still holds that post. In his article, for which one instance obtaining the personal aid and intervention o[
he was paid $10,000 by the World, Mulhall gave what pur· James_E. Watson, later an Indiana Republican Senator and
parted to be a detailed account of the N.A.M.'s undercover Washington character.
activities in the national capital. Among other charges, l\ful· . (5). The N.A.M. and N.C.I.D. "took an active interest and
v,fgorouspart in Congressional campaigns ... for the re-election
hall asserted that he, as representative of the N.A.M-, had 0 romembers whose views
· · harmony with . their legislative
were 1n
paid "between $1,500 and $2,000" to Congressman James'f. P gram · · • and resorted to questionable and disreputable
McDermott, a Chicago D emocrat, for favors received,
 ME"fHODS WER E " SF.CRETIV E ' REPRE 'HENSlBLE" 49
uu•an ~ 1111)111111 n1111lll thl' dl'ic 'l\l ol 1111'1n1Jc1
s who Illld
, , ,, 110
pi OYC<I I hen poI 1n cR, , t a1~ coming to report to me about how their delegations stood.,
<i), ' l'hc N.A.lll. and N.C .l.D. ex.pended "laro e sun Watson was. also . called
. in,. evidence before th e committee
. ·
( ' I I . " lS0£111
in 1hc~c c,1111pa1 gus , . , auc ex.Lene eel their activities llllO
• V on.,.,' ·1 showed, to assist_in 1nfluenc1ng the appointment of members
di suict s t hroughouL the country, where the n1ethod ai,o,~ of f[ouse co'.11m1t~ees. On Aug~st 2, 1909, for example, Mul-
. . . '·I d s emp1
were sccrcnvc , rcpr ehcns1u c, an deserve the severest c0 oy~ hall wired !us Indiana ~ccomphce: "It is extremely important
nation by the House." ndeni, and great favor to m~ 1Eyou ,vill wire Speaker to have Harry
coudry placed on Rivers and Harbors Committee."
In addition, the N .A.M. engaged in antilabor activitY-1'he The Speaker at the time ,vas "Uncle Joe" Cannon, hard-
committee found that Mu 1hall fr equently had been sent b bitten Illinois Republican who was Czar of the House.
the N .A.M. "into sections ,vhere . strikes were in progress,
Y Under the then-existing rules he made all committee ap•
evidently for the purpose of trying to break them ." 1'ha 1 pointments. Th e next day Watson replied by letter: "Before
union-busting was, in the eyes of the Ga1Tett committee I left Washington I did ,vhat I could with Uncle Joe to get
of the principal objects of the N
.A.M., is evidenced b;~~: him to name Coudry on the Committee on Rivers and
mass of testimony and documentary evidence compiled 00 Harbors. I do not think he will do it; if he does not, it will
this point. The committee in its report to the House re, not be any fault of mine, as I most earnestly recommended
marked: "We have set forth these instances with considerable him. I did this on your account because you wanted it done
'
and I told the Speaker you were interested in Coudry."
detail because they appear to be typical of the mental atti-
Watson's doubts about the success of this intrigue were
tude and purposes of the N .A.M. and the N .C.I.D."
justified. Cannon refused to make the appointment, and the
Union-busting, however, was only one of the major ob-
N.A.:'1-_officers on the stand contemptuously denied they
jectives of these organizations. The other was tariff-boosting. had 1nsugated the attempted coup. Their denials in the face
To this end, the committee found, Mulhall, Emery, Watson of Watson's own testimony and correspondence prompted
and many others worked constantly. Much was made by the Representative William J. McDonald, Michigan Progressive
committee itself of the N.A.M.-N.C.I.D. campaign in 1909 and real backbone of the Garrett committee, to remark. in
for establishment of a tariff commission. a separate minority report: "The na'ivc effrontery shown
At that time, Watson , then a former member of the I~o~sc , t;pon the witness stand by officers o{ the N./\.M. in aasurninK
came to Washington for the National Tariff Commission 11 at_the commillce would acC<'ptat lace value the h:tlll
.Association, another N.A.M. offspring, "to personally urge <lcn1ala•·111d , tid 1cu
· 1ou~ cvaa1on• and pcrvcr&1on , or the 1r1ra11
the question with members of the liou se and Senate~· 111
Kof acuona all too plainly con 11p1and si11ia1c1, , , 1;,1111111
. . 1· ) t " Wal$0111 be prrntlttrd lo )J,1aawlthottl 1nc11tlo11
longing to the dominant (R.epub 1can par Y·
• J l • wn 1c1l1• C "'f'I tr l r plainly ahown at1it11dr w,t& ' th,tl the A111rdc,111
"urging" was pure, unadulterau:d lobby1np;, 11 l/8 01111 ° •fllllljrca,WUAI onalilrrctl hy Ihr111 U8 thrli lrKIAl.11 lvr 1lrp,111
mony before the comrnitlcc, he 8akl: " I ltad charge
i I0 'r
rl ht I1,,~ mcnt 1111d w11avirwr, I ' II
Wtl I1Ir A~ITIC 111111~11111 In
111;111111"1
organl1.atlo11 and rampalp;n for a tatJI co111m ~, I (!011K , 11
11
1 0
Jlou1e and Senate,1111<1I hnrl vutlou~ 1uc1nbc ~
 TIIE PRESSURE BOYS
50
which they "iewed their other ctnployces, and that th
·slators who dared to oppose then1 ,vould be discip1·~
legt , .
. th sanie 1nanner 1n ,du
.ch 1
t 1cy ,vere accustomed t d"'"
1n e ,. o 'lei
r111e recalcitrant e1nployees.
p C erning the labor-baiting activities of the N.A , 1
one . ·" • and
parucu. larl)• of the ,vorkman's
. . Protective Association, an.
other N .A.~I. stooge organ1zauon, ~1cDon~ld declared: "lt
ms ridiculous ... to ask anyone to believe that the
see . . .
called Workman's Protective Association "'as anything bu
the flimsiest cover for Mulhall's operations in corrupting,~
the use of money, union labor men of some influence wilh
the fellows to wantonly betray these fello,v-,vorkmen."
The most serious aspect of Mulhall's testimony, so far as
the committee itself was concerned, ,vas the part which
indicated that seven members of the House had been
"reached" by the N .A.M. or its agents. Six of them were
completely white,vashed by the committee in its report to
the House. The seventh, McDermott, was so obviously in-
volved in ~iulhall's machinations that after an exhaustive
inquiry the committee recommended that he be "strongly
censured." Of McDermott the majority report said: "The
members of the House know Mr. McDermott, know his
ideals and his characteristics as the public does not and in
the nature of things cannot kno,v them. His training and
associations have not given him the ethical perceptions ~d
standards relative to public office that usually charactenze
public men."
Failure to expel McDermott-the Garrett committee rec·
ommendations were later adopted in toto by the Ho:
Judiciary Committee-was bitterly assailed by McDonal
McDermottwasnot C!Xpclled.On July 21, 1914, however,be
resigned.
a completely discredited public servant.
MtlltODS \\"1'RI ,.~It . kt 11\l'., •>PKlltT.~IIILJ:.u [ll
in ...
•
Out of the disclosures of the t\iulh.1\1in,csug:ition gtC"
· first antilobby bill introduc.cd in C,011grcu . Sporuotcd
t Iie . . If h
b the Judicia, y Commlltce JlSt• , t c ,nosurc -.ould ha,r
y d registration with the Clerk or th~ I 1<,wc of all
f orce . ·wi ·
uts and lobbyists operaung 1n as ungton on ~half ol
age
individuals, ·
corporauons . .
or assoc1auons. Th c b"ll
, , ~ 1,>
so.
t.l1 J-{ouse,died in the Senate.
~Julhall, Emery, and other N.A.M. minions escaped pun-
. h ent it being held by the Judiciary Committee that I.hr
1stn, . ~
J-{ousewas without power to punish other than 1ts own
members. But they were denounced by Congr=man ~lc-
Donald. Of the N.A.M., the N.C.1.0. and kindred organiza-
tions, he declared: "The evidence convinced me that
l\Iulhall, Emery and his associates, with the enthusiastic
approval of the re~ponsible officers of the N.A.).i., di~ influ-
ence legislation; did prevent the enactment of laws; did force
the app0intment upon committees or subcommiuccs of cer-
tain men believed to be necessary for the carrying out of
their schemes, and prevented other men whom they believed
to be inimical to their interests from being placed thereon.
"They did, by the expenditure of exorbitant sums of
money, aid and attempt to aid in the election of those whom
they believed would readily serve their interests, and by the
same means sought to and did accomplish the defeat of
others whom they opposed. In carrying out these multifari-
ous activities, they did not hesitate as to means, but made
use of any method of corruption found to be effectual. Thev
did not hesitate to use the employees of the Government i;
th c_vcryCapitol iuelf. And, as is shown by literally hun~
of 1t ems 1n
• th e ~fulhall expense accounts, by the purchase
 PRESSuRE BOYS
THE
WERE "SECRF.TIVE kEPREI
IF ... SIBL E" 5!1
52 ,r.ETHODS '
to be tr ay their fellows in elecr '
izat io n la bo r m en
, . . . . , the,, in . '~ n C on 1, 'T es co
s ul d l,e redu<ed· Th en Jooctt
of orga.n and strike-brea,;.1ng acu1·1t1 es -•r,i ence to w . . hi ch .
. . , Stttutt
d a ,,. . A ga in st th e Pr oh ib ition Arncndment,
campaigns le te s1 stem of commerc1ahied
treach ery., Shouse's ~ssoc•~uo~ e du Po nt rn i1 1· ,>ns • s I10\\·ed h ow
hne in to th
new an d Comp the ,.,1·Ulh ··th its p•""
\ \I ha s ch an ge d its m et ho ds . si nc e nl r-
su on gc ,t lo l,b ) in hi $t<,rycould be bcatt'n
,, . a!J the hold of the
Th e .,.. .. .
ob je cu 1· es ar e no t ve ry di ff er en t. ,\t .
•~ •9 ·· ur c~ w ~r ~ av .,i L ,~ ,lt ' 1,, f111anu,a gent- al
but its . . " if unlimi_ted rc so th
sc an da J , re so lu uo ns se em in gl y co nc ,·1 1·
at or y pu bl ic op 1n 1o n ag ,u n\ t ,t. And finally
·on it adopted 11, mobili,.atton of d a new 1,,t,h)tn; ::h
con, entl · 1v er e cr os se d. T he or ga n·
at i, oh ib iti on le ar n< :d an
,·e i" Deal ' but its fing .
ers
. . . •2
dt t the Jesson of pr i~ trationg,ivc pu,perty
h e " ' in g in un e R oo se ve lt J\ d1 ni 11
t cuy and advertis 1937 nique pet fected, th
spent S;so,ooo on pubh er \V as hi n, to sh oo t at . · I he y sh ot and art' , 1111,l1tx,t,
ne ra l di re ct io n of James Selvage, a form interests someu1ing lly w ith deadly cflctt.
th e ge kl y. ;tr bu t oc ca 5i on ,1
m an . It us es al l m edia •of publicity-wec and ing, sometimes wildly 1c fo rm pr ~rarn, iu brood
newspap er • ._ , its so ci al
ra di
•
o, m ou on pi ctures and ma 1,a,ine. 1·he New Deal with en cy to ii1norc aclvitc
da ily ne w sp ap er s, an d its te nd
pe op le th at th ey are the world's mo,t of alphabetical agencies ough big 1,o,iru 'lncn 10
ll th e A merican St re et , fr ig ht en ed en
te
ce nt sy st em of plutocracy. from \Vall gt on lo bh yi Ms. As F,ank
r a be ne fi W a~ h1 11
prosperous unde
be en ve ry lit tle cv id cnc, fa tte n the c11tire corps of ,,r ,\, '" i,,1''"' cl •
\\' or ld \\' ar th er e ha s t of th e A m c· ri ra n B
Since the
en . A m in or n1 cmber 11~ J logan, later Presiden la i,, th c-1('is no cli<·r1t,.,
of C on gr es sm J'c ap ot 00 11 1( af
•
of direct corruption to \V es t Po in t. S en covered during the ' on ,1 ir c. Lawyrrs wcrt
an ap po in tm en t ig ht c- n! 'd m 1l l1
found guilty of selling no w an av ia tto n lo l,- desirable as a badJy fr iu 11 h th e· tort ur,118 1n; 11e,
ne ct ic ut , e lia 11 d th rc
ator Riram Bingham of
Con
th e lla w lq bi lly lc:ading clie11ts by th I 1arlc ,,,.,,K i,1tion,
du ri ng de ba te s on SL (; , iln d al l th t rr ,t.
·r• i11 the· fl<'lcl0 j
,e d of the l',;RA, AAA ,
byist, was severely c1itici st de sk sp a< c III hu
11 iv c 1· xp lo 1C
a lo bb yi en h1
Smoot Tari If ,\ct for
giving
es s ha 1 be w hich forn1crly had be r·d w ith rr ·,p,·c t,,h,hty :,,
l) ca l, C on gr er e t1 1r lc ,w
office. Since the advent
of the New
m o1 al ar 1111rustla~ :,-101,,tion,w c•
(1 1 was irnp<n t 1111 ,.i1 h
bl ic kn ow s. 'fh e t h1 · N R A . C r,1 11
trchnically honc,t ao fa
r a, the pu
11 re ~l l1 code .iuthor 111c•of 11 11 11 1c,·t·th<' N, 1111
lo ~1
ha s ob 1c 1 vc d, 11 s
lik e th c• C 11 r1
aunospherc is, aa Presid
ent Roo\cvclt
i, i1 hu11d1t•d8of as!!oc1at1c, ol othrts to ah.,ndon
i1 1m og . B ut nc ith rr ir 11 rn 11 ; by hu nd r 1·1 1'
er a St. Lou to II Y new rx1x-1
iinpro vcd. It is no long 1l l1 •1 11 ha , ch ,m gc d kr 11 . N ew i1 1d 11 s1 •s clike· 1,1d1n nn<I
11
lt".uide •wectncu on
a tit-a, d,1y. ·1 ht· p, those ahcady u11rlc·1 ta
d "'K•'""·"•on,
11 1th r l'• t- th ln hr
but the net 1e111Ii1 I not ,1lway1 so d1ffr1 ct ll.
1J 1c I.l
· ie C oo lu l~ • •
11
<1.ih ~,lckd thr11 l1 1I
'M a1 1r l 11 11
1h
11 1
h1 cs
. , ,, 1
c w :i, 11 0 11 1u ·1 11 pl11yn1<·ut
111,hrInd 1clly 111 ol IJU~ lll( " Y· 1< '
·1 he lohhy l11uinr l,11111 di
1t d I r • t,1ft p1,11hrtl 1111
anti r,ttly lloovr1 c•1,
11i1nply bl'c,111
1
~r
,1
th
1p po
e
1
go
t.
vr
'
11
!'h
11
e
11
ll,
r1
11 ~l ri ~"t"•II th!' lohh)nh. hr
r
11
lo hh
11 4
~h
yi ~t
11
•
11 of
th ,1
1h
1 th c-y c1111,1l1111a1t•1
c1 :,11.i,:;:~1,11t~.,hoa<; ~;I th
1101hi1111 rnuc h c11hr1 10 oppo,c 11 11 1•ol ti of th r 11 11 vc ·111111r1111 1" I I <'
itt
e• 01 1l y H·,tlly I.I I p1 ei 111111 t 11 ,1 11 h 1 , II'
ll p1 ov ic lr cl th I I I
Sn1oot 'l' tui 111
1r 11 1 I1111h,, 11 1ill tl11 r h. 11 1ltc·w• to thr
J~rlod , It w111 prohihi1
1e111th,tt put 1hr lo hh
,
y
ri ,1
h1
11
1~
11
i1
11un •I
•
11 11 ,11,r""" ·,I ir y
y cou • , o u· 11 t1 11
1q11r,r11tnl 11•r I 1•11t1I• lo1111tl11,•w vi, t 1111
11 th
1K
~
S, 11 11 11 I
11 r,1 14 11 1• np ' '
ha f«t •Kain.'I hr 1\1111 1tr. II \V l1 1, 1c 1, 11 ,1 vr1111 110111of<' ti tr , 11111h:1, .,. 111 I 1111,r thn,r 111,1)r,11, ,1ltr1
r,
r1 C :1 1n 11 e1 11
11 111 1\\l n} 01
lll 1ho11 J111 11
1h lc :cl r.1 11 01 "1 11 11 11nl11I1hr •1111rol • '
<oun1ry 111unlor11r11
 TIIE PRESSURE B OYS
54
t I,c
sevelt tornado hit the valley. of .the p otoma
Roo•
uiet by any 1neans, but the situation is st . c. i\lt.
nOt q · · allc ~
to i>rnnit an apprnisal. 'f he regul nr organi,ed 1 1 ~110&\i 11
. l'k oih1e
tt·cogni,ed spokcs1nen or l ns111r t ess 1 ·e the Chan,ber /· 11 ,
n,l •·t c't' nncl the National Association of l\,[annfi•Cl111 ° , Calli-
C.llAP 'fF.R 4
·11 thr ·ou . 'They have lost po,vcr nn<l Illes,· tts.111
.St\ 011 1 . . igc ht~
of the intetnpcrnte and ohv1011sly selfish nat1tie 111\t
I
. . I 1· . orti. "Oppose Utility Ui\l"
,,l'kS Ne,v l) en I p_o 1r1cs .. nt 1v1dnal in<ln st1·
ies hllir
1111 011 1
ntlde<l personnel to then· ,v nslun gton staffs. Some o[ 11
111 youth or 1111\Clft' ll wi1h a
/ fl\l l),\Nl !!.I.SON, II ga1111,li11g
trade ns.~och11ions sp1nvne<lhy the NH.A havt• left 1, . 1 Iprnch blooni c·on1pkxion,, r11,,1. 1111dall. wa~ p,u ,i.,lly ,on
,1.-
M
1'•

' . . I' ep1c!tn1

ndvt·s brh111d 111vV.uhtnf1tOn. •.X('t•pt fo,· t hcsc-t'hauArs ·
lobbies collert ively nre about ,vhnt t ht•y ,vt'H' lwfmeR~:
velt.
vcrtcd 10 the cn11srof 11tilt1yholdln v. con1pa11 y 1r11,11\a1 lnn in
the 811111 n1e, or 1!)!\!I· Altho1111,
h h1' was 1101~N,1•111\111\y .,n
,nuentinl dti'l('n, till' 10111111y's $111,000,000,000 111ill1 y i11
11
clHNII y rn11 hl1111u: F,l11w1,in p:11t nt \c•aNt. for ltN p11•M·nt
bsl'' vicnce to th<' Sl'r111it ir~ 1111clEJ<d111np.t' Cn111111hNion.
811
Ellner was n WcNH '1n Union 1n1•NNt ·n11,(·1hoy 111 W111r1•11,
l'r1111Nylv1111in,when llll' AN~o<ial('(\ C:UNand 11 ,\t'('ll if Co1n-
p11ny,1hc utility 1·1111hy l tow:11cll top~on, fat ph111110111 of
ihc l11cl11M1y, l1n1n<hrcl its cnn1p11i11,11 1111,11i11Mth(• Wlweler
Rayburn 1loltllng Con1p1111yhill , l\dng nu t'llt''l(Ctil' youth,
11Jn,c1'urn<leIhr 1nost or th is ro1111 honN <i,e11n1s111n1 r lo pkl<.
up n little spending ,noncy, A. C:. & It ,v11N paying Wt8tc1n
Union boys at W:11rt'n th, <'C ~ents for cvt•1y tclt'p;ran,or
p1·01c8lagainst the p1oposctl kp;isl11tio11 thL·y could pct'Nllt1tlc
Waric11citia·ns to sencl to C:011p,1 ·css1nt111 n. J. nl'iscol\.
So I•:hncr sallied £011h rq uippcd ,vit h lhc in[onllatio11 thnt
enactn,cnt of the Whcclcr -Rayhurn hill would pince conlrol
or the clcctl'ic ulility ind118lryin the hands o[ the "blg men.''
lie "explained" the ml·asu,·c 10 prospectivetckp,ran1 Mc11tlcrs.
Ile solicited six tclcgrurns before a knowing Warren ,nrr•
chant named Epstein told him he had been n1isin[ormcd
about the purposes of the legislation - that if paMed, in £act,
thc bill would deprive the big men of control. Elmer was
53
 .. OPP OS E UTILIT Y BILL"
. k' I S'J
.. h wa)· do you ti 1111 • its 1ould be no,,, .. Bla
n,
r i:, k,1 hut und.n1nl< '<l. l L1vin 1.1: ' f.1il,'d 10 ..s•'ll
.._ "l' l1Ste' ..,,inc · '· cl:.asked
• • •· I ' ' 1t1~ u u·al now," £liner decided. ·
th e: t.l<.".1 <'l >'<
'\\ull\>\'.1 pr,>1cs1. 1<: ''"' '-' " 111) the 1, 1•\tter, ,1•11
vi\ ••J 3111 I le •
untry was full of Elmcrs ,n the summer f
,,n,• <'f hi s <,, 111<·1nrx,r.1r ic:s.• 1 I.id . 11:1111<."d •·\n d,•i-- · 1-t 'fhe Co B , o 19~5.
• • , >On, "tl 1 •te prodded by urt \\ heeler of illontana th
. \ ndc:r~'<'ll lx,, 111 his t<'lc:
,1 1'.\ 111 .1dv,scd
"' Dris ~I \·
"''- '-' . .. 0 0 .1 e 'fhe Sen.. • , en a
. ~nt liberal , had alr eady passed the legislation 1
p,, lit it'$ intlucn<'<' ~-.c)()(\ judgn1t'nt. Opp<>s<' nti lit y bi\~ . let consist• nding in the H ouse, w I1ere at Ieast part of the leader . t-
.1 hiend 0f fhnc:r. he rould do no lt•ss since th e •·\ ' G · & .\s F:
' 11,:,s P: Iudin"' Chairman John o·connor of the Rul
""'sP." iii$
the t-0\ls. · '· . ship-inc
co111nnt
. tee-was "' doin . could to knife the bill de .es
. g all 1t
. spite
Sut DriSC'Oll, who f.1vo 01np...,ny le .
1-ed the holding -c:- . ·lance of Sam Rayburn, its coauthor. The tel,..,.,.aphi
· I · --> b · gi~\a. the v1g•• . -o.. c
, y receipt of 816 telegra
uon, \\':.\Snot p1-oper v unpress ...... until Black demonstrated that 1t was a fake h d
l)al1':tge, , a
in nro d.\~'S-Inste:td. he b<.'C:\tncsuspicious. The telc Ills . ced lllost members of the Ho use-about So per cent
"·ere not only sin1il:t1·ly ,\-orded bnt the naines si1rn~ llls • conv1n were utility stockholders themselves- that th
of wh oIll ey
1nost of then1 st:n-ted with the letters A, B. or C. He"rela,·: could safely fo!lo,v their o,vn predilections and vote against
his suspicions to Herbert A. Blon1.quist, ace investigator f the bill; but after the Black ex~se-~lmer made such good
Hugo L. Black's committee, ",hich had been authoriied
the Senate to investig:i.te lobbying and propaganda acthiti~
:r. I copYthe new·spapers_could not ignore it-a majority ,vas won
over to the side ,vhich Elmer eventually and correctly de-
of the utilities. That ,\TaS ho,v Elmer, his superiors in the cidedwas against the big men. Even the highly controvers ial
'\Varreu 1\'estern Un ion office and eventually a group o[
top utility company officials happened to• come to \Vashina.
ton that June. Before he ,vas through ,vith them, Black had
0
' "death sentence" clause, calling for gradual dissolution o£
holdingcolllpanies for '\Vhich there ,vas no economic excuse,
finallywas included in the law.
demonstrated that thousands of phony telegrams . bought and That the A. G. & E. learned nothing from the Black
paid for by the utilities and signed ,vith names taken at lobby investigation ,vas amply demonstrated in the summer
random from telephone directories, had been sent to Con• of 1939,when the Securities and Exchange Commission re-
gressmen in an effort to beat holding company regulation. vealed that it handed out $55,000 for eleven months' '\VOrk
He proved, too, that the utility lobby spent some $4,000,000 to Ben Grey, Washington lobbyist, in 1937. According to
on its campaign. The money, of course, came out of the Fred F. Burrough~, Associated vice-president, Grey drew his
pockets of utility stockholders. Black further disclosed that
Grey· a monthf stipend
$5,000 . for "mixing with th e ng . h t people."
the perpetrators of the telegram hoax burned and otherwise his sta~t~ ~ro ess~onal lobbyist of long experience who got
destroyed much of the evidence against them. the New ~ngla JOb for the Harding Administration. When
"By Western Union I was told that if the bill went
Johnson an;~~~long he attached himself to Hugh
through, the utility companieswould be in the bands of the
big men and by Epstein I was told that if the bill went It would have been ~e
Pricedand asonable to suppose that the h' h
through it would take the companies out of the hands of the presumably 1g -
competent head men of the utilities
big men," Elmer testified.

'
 THE PRESSURE BOYS
"OPPOSE UTIL ITY BILL"
58 d learned their·1 esson d'unng the "rot 1
industr Y ha . . • · · . r on for an invasion of '\Vashingtonby personal h
de Comm1ss1on1nqu1ry int o their pre-"' g~ rran"e d ome-
FederaIT ra . . "e,v l) a 0
f . nds of Congress1nen.But for Black's service to th
. . . With the possible exception of the railroad . ea1 owfl .ne. drao-gingthe uu·1·ity executivesand their hirelingse
acuv1ues. .. . h s in , L t
. b '!ding era, the uuhues ad amassed th ~,e counuyi 0 o . . ,
empire· ui • . e Wo . and screaming, out into the open, the Wheeler-
f corruption and explo1tat1on American h' 1'11 1cick10g .bill undoubte di Y ,vouId h ave been beaten or muti•
record O d . ist0
before the Ne"' Deal starte on Its reform ty Rayburn . the name of rugged in . d'ivi'd uahsm
. and sacred pri-
afforded crusaq
IlUllissionsho,ved that they had 1vatered their t. Jated in . . h d
Th e C O l' StO(ki, vate property righ~ - As itdis, StEeC ecent!~ managed private
investor and consumer a 1ke and underta'· . . . re prospenng un er regu1ation and the public
mu1cted . . . . . ..ei1 to uuhnes a •
by purchasing or br1b1ng ostensibly disinte . fiting from a gradual extension of the TVA and other
cover uP rested
rofessors and newspapers to argue their case ,s bene tal . expenments.
yardsttck .
coIIege P . , such governmen . .
.as1,,.t , ..as before the public.
. .The expose should. have taught The organized lobby against the hold1~g company bill was
the utilities to be cauuous, 1£ not honest. But it didn't. d by Philip Henry Gadsden, chairman of the Com-
Their case was never very strong. Even the property Wor. heade of Utility Execuuves'.
rnittee · h' h . l d d
w 1c 1~c u e representat1v~s
.
shipers could see that there ,v~sn't much sense in turning ost of the big companies. Associated Gas and Electric
over water-power resources, ,vhich belong to everyone,toa of
wasmexcluded because even th e uti·1·1t1es · men d'dn'
I t h ave
few favored exploiters and then permitting these fewto much use for Hopson, ,vhom they blamed for getting the en-
charge extortionate rates. To get a,vay ,vith it, the pri\'atc tire industry in bad by his o,vn recklessness. Gadsden ad-
utilities had to resort to all sorts of stealthy dodges, among mitted to Black that his committee had spent $151,865
them the complex holding company setups for hiding profiu oppasing the regulatory bill ~p to the time of ~he hearin~.
and drawing them off in the form of service chargesand He also informed the committee that the Edison Electric
exorbitant salaries. This led them inevitably into the sortof Institute, a lobbying organization hiding behind the name of
financial racketeering that the Insulls practiced. And this,in the great inventor, had spent a considerable wad.
turn, led to crooked propaganda methods. So the perform• The Institute had hired Sullivan 8c Cromwell and Simp
ance put on by the utilities in their futile attempt to beat son, Thacher & Bartlett to act as counsel to Gadsden's
the Wheeler-Rayburn bill was merely the old dog doingold ~ committee for retainers of $75,000 each. Nor ,vere the util-
ities penurious about publicity counsel. Burnham Carter,
tricks. a partner in the firm of Ivy Lee and T. J. Ross, testified that
2
his firm received $5,000 a month for assistance in the prep-
Not only the Associated Gas and Electric Company but aration of statements and "articles to be signed by the
alro other utilities throughout the country helped lay down • president."Gadsden frankly admitted that he had asked
d members of his committee to put on a personal lobbying
the telegraphicbarrage.In addition, individual utilities ao
campaign.
their various organizations hired lobby lawyers ~t fan1 He wasrather proud of the idea of bringing to Washing-
prices, retained the most accomplished propaganduts an
 TH£ PR£SSt;RE BOY S
6o "OP POSY IJ'rll,(1 y err.r," 1,,
ds of ( on ~~
to turn on the heat personal frien ,,r an un, 1r·rrnn,. ,..<i Su-
wn to a Con:.. lll~i se 1hc public IQ the <l,,ng<·r
·ho were able tO "come here and sav· to a
rou
n• ( > J
men " ·1 · I,, . .
~•C1!tr:•
'<· rne court. I fe has been ,,t II e,t r \in • n 1111e27 . '
•~·,·
.,·,,
pre a rea l , ,
'John ' or un .
s "'-rso naJ a ng before the . President :;a,<- him I )< 1,y P" 'I" »-
Hon-n n didn't ha\ ·e much faJth 1n thi r• I0
e Suprc ,
rnc C,,utt , s, 111 an wrott an
- ,.
r- the po wer of the i>~ , . g to rcor.,a.an1ic th . .
ced gre ate r rel ian ce on 1n vclt '>Ccling lo turn
stuff. He pla r,rt\\. article jus tify ing thi s he ad lin e: ' RQ o,e
pa rtic ula r!" the He ars t pre ss, to ,,·hi ch his corn ,.,,.,. ~I ark Sullivan suiz~csl~
He li.l ,ed .
sin :'; people against the Supreme C.our~.
paid s~ .31 1 for s?:ce to run ad ,eruse_m ents oppo his insistence on broader hne leg,sl
ation h gn,unrlworlc.to
nti) feeling that this ' ~
3 te.' "
holding: compan,· bill .. .\ pphareH li '>Utl; switch nation into 'tota litarian sta
. . st po c,· -m ak .in ,, the pre ss, however. He '-lW
entitled him to a , 01ce l1l t . e ear . ,, counci'i Hopso n did n't rel y sol e!} ' on
publisher at San Si · yers with the right con-
H op son on Ju l, S. 19 35 . ,,-i red the to it that his company got some law
en ad ,is ed tha t there is ~eat like(::. on s on its pa yro ll. Br uc e Kr em er, Cumming\' pal, wa,
C1 lilo mi a: "H a,· e be ne cti
";n • tary of \\'ar, Pat flurley,
th:lt H ou.<e holding company bill
pass tomorro,, duly retained. So was Hoover's Secre
pietel\' disrtgarding its probable co
nstitutionality. Hope ;l:l- not a Democrat to be sure, but a fas
t talker and a prominent
ba,e to prevent ·: \\T ash ing ton soc iet y, Ap pe ari n g before the Black
";n us e ev ery inf lue nc e the y figure in
people Hu rle y put on his usual
nstitution." Hopson ir:..- committee at his ow n ins ist en ce,
of pre sti ge of the co
bru nn gd ow n
sup pli ed litt le information except that
a few insiders had tait:i an im ate d sho w bu t
with members of his family and rec eiv ed $ 50 ,00 0 to pro tec t the interests of
the fiye "ears from 19, 9 . his finn ha d
$t .So,5.ooo out of the •.\. G. S.:E. in &: E. du rin g the Pe co ra ba nking investigation and
G.
9" . -w aswo rry ing all that time, it appears, about the~ A.
Co mm iss i on inv est iga tion, and $25,000
1 the Fede ral Tr ad e
stiturioo ·s prestige. his ser vic es in fig hti ng off the \\lh eeler-Raybum bill.
possibility that tbt for
He .-as oo less worried about the Hurley told Blaclt this latter fee wa
s for getting a "hearing
fw■ndammtal bw of the land
might be amended. On ~UT31 co mm itte e" in ch arg e of the legislation. HoJ)'Qn
be for e the
:te d M ark Su lli, -an of the "?\ 'e- .r}"ork HeTald Tn> office boy call the commit-
1935-be wi could have got that by having his
m uc h int ere ste d in yo ur art icle on Supreme a "st op ou t retainer fee" of $5.000
w: • Am ttt cle rk . Kr em er go t on ly
ral d Tr ibu ne of 29 th an d am wol'Kicril?l dc rea the 3.l IIO Un t of service he felt com-
Comt in He -" wh en he rcn
ne w of sta tem en t at tod ay 's press conmtJXt had to communicate with the
WNIM in the mcnR1rate with $5,000 he
is wi lli ng to wa it fo r slo w procm ~ ~ company."
he (die Jl'r esi de ot]
e 11 11
\Vilsoo and
iat
on ti'l.-ioml uocndmcnL \\'oold
gr ca tJy ap pr ec
JOICpb Tumulty, once secretary to \Voodrow
?Oil
J1P h w.
201111Eli-"
•iw :, if aft rr cn m id aa tio
pour opinion as to whether m
-., nnt willil'llgli.:• of a luge majo
o of what was said
• .

rity_ of _united~
of die
,,ew =~
a~
watb
ev
ref
W ty comparu
er
er~
sin

cs ,
ce
to
rcc
, sai
~-
aV
d
e
Jn
he
W
g
wa
he
$6
s
ele
,00 0
"e
r-R
mp
ay
fro m
1 1,500 from the Commonwealth le Southern
loyed in an advuory
bu rn
the
bill" by several
Am eri can \Vater
$1 u,n
w wb eu ,er the y ar e led 1t will be P.-- b, 1
Si 7n: PO fo llo or ' •cr--
a.• .- "-i Pn-ict,1· ·
"'Serviceof New Jersey, and $11,500 fro m Cities
a..pew
r St - die.... Prc101tlyhe wal US
. lngruscol-
(ii:
.. 01'1'0 ,'il IJIIII I \ 1111 I ''

,., ,,i ,·t · ()111 lll 1'1b $1 j ,,, oo , hi' p,11d• s~.r,• 1111 In ) I h 1~~• I
1n1,1 ol l>c· 1\ . I, , i. 1• t,•, B.,~,,
,S,
' • '
1
t·1 11 i,: ,·. ~ ( )ur 11w 11il><'> t
. g,l 1 "·' 11 w.,s
"' •
111: 11111< S1'1 ·11. 11 <1
C: 11 .
.,,,u◄ I
th)' A11~h<'II\, .111~1Sr,,01101 htl\11u·" 1,ltt• <1I I' 1 ('Ill l(.1)0 f'il(•
10 1111<'
t 10 p.ty $·lose•, • '( '0 111101 , ('\I(

1p ,h 11 ,•.
11 <' ht • .tl ~o t·x p1 ·r1 •d (' ' , •
()'(' 0111 I I
ot N,•w I l,111 Ch .111111.111 Jol111 101 u t ,c· I lou!tic·
,,11 d
1 luo1h1 ·1• of
\\I ~-r.oo 11 , • , . .
h, ·1 of th t· l.1 t,· S, •n ,1 to ·1 ' 1\ 1111 Vt' Ir •
11 • • • • •
IH)IU I i l(•d S
.tbh, h101 . 111 ,11,011 "'"' 111
10 Johu \\' '
I ha 111101 111
· I 1 ·1l,h Clr , It" ( 'o nin 111 1,c . , .
1 ~u11 <Cllnp.,11y. wla~
· •
11
l\(on . ran,1. 'l 1111I11
·1 r
I
I )' 1f Ill I I('\' l t'SII l l'(
·
t 1,1( d1
·1· ' HISll\t•~s, $to 01)()f I·0111 th
1
i11 g le,
.l.i 1, 11 e 11 • 1\. 11 •• '
nu1101111hs. a
VI( '(' p1t •.i d, ·111 of 1lw
I l 11p
·etils, W11:11 1l'K,11
1· lltt• Ill.Ill-. <<)ll11n 111,•,· ' l·x
19.,,Qr,he got, as1t,, 1'0111•11$ 1111II) ' •ir
,lf'f )( •
<'d IH 'lllt t· ' •
r
rn 1\nhui o·n•· <'
,
s, $ 1,1 15 0 fro
.
, .,,s Basil Con1101 perto, 11 ,
() 1l Co, th,· 1, •,11 1)O)' 0 t 1lt•
•d
r.1 .1 1c 1t al '. l 1tat
lh n t'all of Ra w S(.'I \ 11 1s known• 1,0 ,,,<\ t•t,
,
1h c1 s, $ 10 ,0 00 fro1n tht• N,11.'101 •rn, '"'
;cs w ,1 ~ n, •v e1 cs t.1 l> hs he cl .
ll
$ »!,,OOO frorn I.c hn 1a 11 H ro 1,11 ·,
11l 1
,
r·
r l lopson withoui COIU
,
.
01n l\f a1111clQu,, 10 11 "Hh ...
ohn ()'C: . 01 11 10di1 d all he co ul d fo
Disullcrs Prod ucts, $ 1ll,50IT0 f1•
• • N
.l . . al le ad er of the I louse.
I }I • hp • •
ncs," $~.0oo s,1 01
1 1 as a cw 1 ),·
II rn au cr s a .. cc un g tit • h1 p1 pioanisiuglus !io
rc[crencc 10 '.'
ye ar s afte r th e ba 11le over th e \ Vhcclc,
n1 th e tJ 111 1c d St at es R ub be r Co1npany, and ' for tittcr 11w.is uo L un ul tw o
b1 ol ..c with the Atltnini~
fto .1I\~ lh at () 'C o n1 101 op en ly
irc s, $ 1 r;. oo o fro 1n th e N e, v York. law ~ II11 R:iybu111bi ll
1c oq~.uii,attion.
)·cars' scrv •
,•n t Ll oyd's or London 11:ii' ion on the ps eu do -is su e of go vc nu n, ·n t
Uing h.1111 ,Fn gl .tr & Jo ne s. w ho rc pr cs
sc lf to ob str uc tio n un t il th en . n ut R oole
r ta in l y the n\ost scnti: I It' con lined hi1n
One of th e 1n os t en ga gi ng an d ce
w ha t he ,v as ta lk in g ab ou t ,v hcn, in t 938, he asked
lo bb yi sts , T tn n nl ty is a holdover ,ell knew th e N t·w Yoik
,nenral o[ th e '\V ash in gt on on no r's sc al p by i1 on
1f ni 11 g
hool. Kno ,ving all who for· and gol- O'C
fro n1 an ol dt• r , no ,v dt •cl in in g sc
:1 tc th at th e Ru l es C on un itt cc chai11nan was th e ntosl
on , lik in g then, and •~ d cc1or
,1 sh in g1 pit ol.
:unount to anyt hi ng in '\V
lts as a special d£cctiveobstructionist in th e Ca
ion in re tu rn , he ge ts re su
ceiving affect
r be fo re :\c hn in isu at io n ag en cies, man y of ,vhich arc
pleade
em pl oy ee s he ha s rc co 1n n1 endcd. Il e may l
well stocked with
e in flu en ce n• ith in di vi du al n1embcrs o[ Con• ht ov cr th e ho ld in g co 1n pany Jcgisla-
also have som . Thro~ghout the fig
ov er -th e- br an dy so rt of ,v ay . Ile seldom appears lo ud ly pr of es se d de vo tio n to its purposes.
gressin an uon, 0 Conn or
os t cl osely, however, were
beforea Congressional committee. ty ci rculated among • Th~. who fo llo w ed its pr og re ss m
he ta lked one way and
ck in ve sti ga tio n, Tu m ul m . Th ei r fe ar s th at
After the Bla ausp1c1o_suof hi
ph le t en t itl ed "S ta te m en t" in which he de-
ot he r w er e bo rn e ou t w he n the llouse voted
hia&iendsa pam acted quite an
and Joe Tumulty. r, as chairman of the
fendedthe
"Not beingw
to tarnuh ol
ut

d
ili
ill
fri
in
t
g
en
y

ds
ho
to
hi
ld
lo
ps
in
bb
-
g
y,
to
"
co

ek
he
m

e
pa
w
ou
ni
ro
t
es
te , "a nd being ashamed
a fee, I give to clients,
the
=ttce
on the de

had on
at h-

th e
ac nt

flo
en

or
ce

bu
cl

t
au

un
se
which decides not only what
de
.

r
O

w
'C on

ha
no
bill shall be con-
t rules it shall be debated
ing a fre e so ul po ss es sc s- su ch a ,v ay that a roll call o~
rich and pooralike, the only th essional en· thedeall'l'an ged thth e pr oc ed ur e in
gi ve s to an ho no ra bl e pr of ae nt en ce was im • possi·bl e. The test came on what
moclatability that I gave freely, la c:alled .. 11 · members file through the
t e brain an d vi sio n on e ha s. Th at aaI te er vote"·• th at is,
gagementh
honorabl y,un ld nt ed ly , an d cl ea nl y to those who so1;1ght_ ~r, centerai
e and ar e co un te d fo r or ag ai ns t. No record of

coumelandc»0pention in the matter of the Wheelerbil ·

'l'lllt. l'RII.SSURI', IIOY/;

' ' 0 1; l• Os• ~ u ·r11.1 rv n1 1,r.''

. ·nc C:011 gn·ss 111a11no lo11f.,<'1was ,y,npalh<' lic with the

I
~ ·" 1· .
J'1(' .i ick11l'S 11iilii y po I( I('~ "'."'. (Oll\t'(Jlll' llll y he (H1cwstcr)
ro11lcl 1101iq>1<'St:''' liw /\cl1111111 , 11.,11011a11y 101111,c , iu negoti•
. l><'I
w<'<'" l•,·ck 1.,1 ;i11clSlat e 11,ov<·
11111 1c·111
s incid• ·nt·1l to
aoous . . · ... ·
ti" ' l.,ulll' hill!!,ol th<' 1'.,,s:1111.1q11
odcly 1'.cl,· 1,,11nc,, in 11,p, ojccl.
tJ niil 11,,. 11. llr rwsll'I', who 111 adt· 111 s politit ·al i cputation
, uiilii y h:1ilt'l' , had been l'<'!\ankcl:,s :, sta 11nrh supporter
.,s., .k 1·
. Pn•sid<·111·s yan ls11c · po icy. li e h:,d 1>ani ci1>atcd in
0 f t I,~ •
ilw ninl',·i·cnc-cs where stra 1c•gy was planned. ·r1ic 'Q uoddy
• (' I which rc<111irt·ddose co-opcra1io 11between slate and
p 1tlll' • .
Frck• .,1 p.ovcr11n1c111s, had bc,·n 111sbaby and he had been
cniru sicd n111rh to his delight - with so,ne o( the responsi•
1.>i\ilics
for its rearing.
It was not un11:11uralthat Corcoran considered hi1n to
h:wc changed sides in the Wheeler -Ra yburn fight. Yet
Brcwstcr, in his appearance before the O'Connor committee,
mnnng-edto affect righteous indignation at Corcoran's at-
te,upt to [o!'ce hin1 into voting against his newly acquired
con,•iction tbnt the holding company bill ,vas so1neho,v anti-
SO<:inl. In a 1nelodran1atic sl10,v of un controllab le anger he
shouted that Corcoran ,vas a liar. Fortunately for Corcoran,
the convcrs.i.tion on ,vhich Bre,vster pinned his charges took
placein the presence of Ernest Gruening , former editor of
a l.{aine ne,vspaper and the New Yo1·1tPost and now Director
of Territories and Island Possessions, a man of unimpeach-
ableintegrity, who corroborated Corcoran's account of what
hadhappened.So that bubble burst.
O'Connor was not much more successful in his Hopson-
shielding venture. For weeks Hopson had avoided service
of a Blackcommittee subpoena with the explanation that
bewastoo ill to testify. It was an old Hopson dodge. On
February •• 1935, he sent a doctor's certificate from Florida
ID NewYorkto prove that he was in no condition to testify
 66 THE PRESSURE B OYS '"OPPOSE UTILITY lllLL"'
67
in a pending civil suit involvin g one W 1 ' ques ·oning by, the Senators. ! le
. pro, ed a,1 evasive
. and un
U
preceding
. day, however, he had been we a terl Taylor. On the
l eno . f•ctory
us • witness.
. But .he d,dn"t plead
• i,n1nu111t
. y as his·
his New York attorneys: " ... look up a11 transaugh. to w·ire own law)•cr, a tn ck he
53 . tncd later when the SE·C was tr yin
alter. Taylor . with. a view to brincn o-ng vari. ous ctions 1 lO pJumb the mysteries. o[ the A. C. & 1::.sctup, h.l S point
.g
W nd ,,,tt 1
lawsuits ·ng that as J-Iopson s lawyer he could not b 1ea
e1 . k ,,a1th
.
. against him . in connection w·it h v,h1ch . ah sundry
b
examined before . trial as long as plaintiff s h ave mone e can be ,,.ith his client, Hopson.
Besideshis Ja,~yers an~ publi city n_ien, Hopson sent to
ror• proccc
( d 1ngs; look
f
up .all. transactions w·it h a view
. Y to Pa)
t0 . \Vashington,dunn~ the ume the holdin g company bill was
I11m. or .return o comm1ss1ons or any othe r lun 1 . g lll suu,. 0
pending,a personality-plus broker named Bernard B. R.obin-
be 1mag1ned." at could son,who started his career as a lobbyist for the A. c. &: E.
I
I l op~on
• was
• still very sick . in April but Iic was abl by paying Robert Smith, a \Vashington lawyer, $soo to
sen <l 1nstrucuons . from Miami Beach to his su bord"inatcs e to
i,1 introduce hi1n to people. All he needed was a start. A lavish
N cw . Y. oi-k C 1ty to encourage "our investors in states where entertainer, a good conversationalist and a persuasive sales-
111a1or 1ty members of . the . Senate . reside to ,vrite to such man,"Robbie" made headway famously in the politico-social
Se l I
na ors pron1pt y as umc 1s very 1mport:1nt." This tele set. Presently he was entertaining at a cocktail party not
was 11gne . d by " T om, " II opson's chauffeur, but the utilit grainy only "Evie" \Valker, later Mrs. Robert, but Chip Robert,
?1agnat~ adm itt ed ~h at he had sent it. P ursuant to Hopson's l\larvin l\fcl ntyre and Senato r T ydings. I t "'as in his hotel
amtrucuons at a u mc wh en he ,vas far too ill to think o! suite that newspapermen discovered McIntyre and R obert
testifying bef ore anyone, A. G. 8: E. sent out form lctten while looking for H opson . On this occasion McIn tyre ad-
and messages to employees all over its {ar-Rung empire with monished newspaperm en that his prese nce in R obinson's
an adm oniti on to get inv esto rs to sign and send them. t roomwas "olf the record ." But one of th e repor ters, R obert
S. ~• of the Washington M erry-Go-Roun d, was not 50
Still too delicat e to appea r in pub li c when the Black in·
easilyordered off a good story. "Nuts with that off-the-
?t1dption atartcd , H opson n evert hele ss was strong enough
to aklparound from hotel to hotel , W ashi ngto n to Alex· record stuffI" sai· d All en as he headed for the nearest tele-
andda.Va., and back, to dod ge subpacna servers. He also phone .
lmner
It WU "& Obb ac, . .. too, who suggested retenti on of Bruce
WII able to negoti ate with on e of O 'Connor 's agents for an
~ appearancebefore the friendly H oUSCRules Com· Ownmi: ~ a h~ng before the Interstate Commerce
Mcintama 'P,.(}Qugh ~ Bun Wheeler , like Kremer a
a.llllt. Whena Black committee agent undertook to sen-e
a,_,oePI on Hopetlll at the time of his House appearan~
'"" •mon11 now Kremer'a son-in -law
...o1.-~became . dignant when committee. members
• m
,.,-~ .. .. all bat atraigbt-umed by William A- ffill, one
~ laW,-. Hill pu>ftd a better line-plunger~
polke()'CoDDOI' badi,mU1JCled
to }'"v -•t•
- he
el~ :ti JNght be. Playing
. the social lobby game.
:: if.hemd. He merely made a lot of friends
they wanted to come to bis apartment
• .,,... lrf+o.._ WbeDthe Black~ 10

- pn. HoplOO wa-entedto SU

 THE PRES SU R E B OYS ►
68 "OPPOSF UTILITY Blt.t,"
for., drink it was all ri ght ,vith him. \ Vhy, ¼htn h 69
1
New y 01 k the last time he had di nner with \Vi\\ c ' ent 1,, . 1 •,nd
oc.ia .. othe• wise,
. . by tne1~ilcss cross•cxan1·,
· .. ,1at·,
.. on. t I1e
. I k·d "l d . ,. .. lla)s\ s ; )(ers of the oppos,uon c:ist about (or sonlco• 1·t o ( countcr-
th.tt lobbying? 1e as c . . on t ...now, 1crnilrkcd ~ \';ii
t110 . e ,traLeg}• \ Vhat they finally hit upon , •as d 1
Ft nest \V. Gibson, Republican 1nc1nber of the com~· nal(,1 oflcns1V " · . . '' goo . t
'"lltee. ' the clai1n that Black was v1olaung the constitutional
"~ 5 c against unlawful searches and seirurcs to get \ b
uar:utLC ~ . · o -
4 g '. telegrams. Th e courts 11 nmcdiately broke out in a
by1ngof injun cuon . .
suits supported by feverish publi city.
Robe.·,t E. Sinith, ,1geni,11 representative o[ se,c t,tl \ , ras11. Randolph I'. earst, w h·o,e newspapers were leading
., I . ,. .._. d . \ es1e1 ,v;n1a111 • the "Blackguard co1nn11u . ce,., sought an ini·unc-
tntcicsts, aho rontr1~ct to 111.1 ...e n1c1~ sand 1nfiuentc J>eon k on
\\ ',ishington. I le rented a house 111 Georgetown, and P~c 11
d~. •1mc _
prevent seizure of telegrams .utstructin g his \Vash-
111 uon to stall' tO give the \Vheeler -Rayburn bill the works.
. ., 1,:,snu:n, ,1111011)1,thcn1 S.1n1ucl B. Pcucn gi\\ of 1 d' ~ .
( l 111"' n iana 1ngton . the newspapers. Instead
ne of the 111 ost , iolcnt foes
• of holding •con1p.1ny r= .,,ulauon
. • • t lost in the courts, but won 1n
O Hears . , . .
,cll in with hint. nu11ng the cou1sc o[ a plca s.1111 summ~ of featuring the committees se~sauonal disclosures, news-
1110 papersgencrall'. played up on the1_rfront pages a~d ~eplored
ll'SS th;in 1111ccSt'll,lllllS ;1nd ftft}_ R.cprcsentati\'es Were
110 . heir editorial columns Blacks method of 1ssu1ng sub-
.-ntrt tain.-ll at S1nith's ,nu~t:1,. l lts hou,cmatcs, besidts • ,n L
Pettengill, were Con)l,tCl"lllt:ll Glo,cr ll. Cary of Kentucky, nas duces cecum to rake in the autumnal fall of telegrams.
D. \\ 'orth Clark ol Idaho. l.1tcr cl<.-ctcdto the Senate, \\ 'illfam ~Vhile the Hearst 'injunction proceedings were pending
~nd Heant was loudly protesting the innocent character of
L. faC$ingerof ()hio. Jan1cs G. Sci ughatn of Ncvad.1,~nd
his telegrams, Black slipped one of them to Chairman John
\Vill iam H. Sutphin of Ne"· Jcr~ey. They filed before the
Blad.committee to swear that while they discuS$Cdall nun- 1 J. l',lcSwainof the House i\lilitary Affairs Committee. ~{c-
Swainread on the Roor of the House this little billet doux
ner of natiooal problems during the ~ummer, they somehow
from Hearst to one of his \\ 'ashington editorial writers:
~ any mention o( the \\ 'hccler-Ra)burn bill. then tbt

. ............
~atU • -•-~ '--&...-

..
ucu....
ConOTCSS.
.,.
~fa)bc they did. becausePet·
.W ...__._one o( Smith 's ruls who ,otcd ag;tlllll
,
t.,M .. mmpeoybill. .
.--
.
. "Conlidential. Why not make several editorials calling lor
impac:b-,it of Mr. McSwain. He is the enemy within the
ptel ol Coogresa. the nation 's ciUtdel. He is a Communist in
ipirit anda traitor in effect. He would leave the United States
8M Im 11 adationwith them had made it pos,11blcl<X
wed IO fomgn and domestic enemies. Please make these for
111t•• ba1r ti~~ them bc:re
the;;: tbeDniDg papen.William Randolph HeanL"
Mo-' 11•• be ulc1edto dcliftl' the cst::'n committtt
..... 1r;u1rt nf $a5,000~ut.~ Gad . l (ricnd1 in SU. Stnwn of Chicago, one-time head of the United
l2na. ,.,..,.. Smith• inl~aa 4lll •Jaett.e- • UI Ownber<IfC'A>lnmcra:,retained Frank Hogan , later
1 1 nr Qerlel McNartua"II • P f!a ci tbe American Bar liwviation and already
 TIIE PRE SSU R E llOYS
.. OJ'l' <>SF. fl 111 n V IUI I•
F. 7t
fainous as the defend. er of .Albert Fa ll and ··Lt) . up some .of tlu· fi11.1 1 l J,·.,
1ria trd~-m
. : Oh11 c ,, •tu ,, 1 th<" uulitio.
aud had better luck 111 the' cou1 t~. I le serure l 1 ell) ll f shO" . . .
lu• A <,. & I'.
for ,he most p,1rt H w.1~,,n old Mory rt1,,l<1. . 1
).
t of ,0q
from Justice Alfred A. ,, heat of the l)i,tric
C-J ul\tt -
d wriucn up 1he \.1lua11on sof suhiid iaries •• lm
urt to pre ven t the \\ 'c~ tcrn Un i o ·0h1111b 11 ha ·11· d II on, · of ;.. S<.
. c k'an . y -
Supreme Co 1011 o au, "
" ty m, -prcs1dcnu
11 1
· \\'1· th the Senate su b pocna for th e prod Uct.1on oftlllli.
£ 0111 r,,·c10 dei"h . ~ V1t.c
,
plpng 1n "tte · f he com1n1t1e<ch i<<,vcrul' 1,~,v, that , 1,..,,ry L.
1
iain telegrams on th e g1o und that it vio lated t IlC fo tcr. 3d
oohcrt>' and Co rnpany, personal h,,J
ding c.ornpar,1 of the
. . Ji re• of c·I 1-If"$ Scrv ..
an1endment Co t 1e I C ons utu t1on guarant eeing cit"1l<!nsa Uri . .1th....., service magnate, du mpc,I 200,000 sha "
•
e cou &a11111 C aaJ.e,men through-
'"unreasonable searches and seuures." Th Tl Order I,.. . ,cc cornrno~ stock in ~fa1ch, 19.29. wh_ile
tion ' bUt d"td ''-'(I. same stock to
slight effect on the course of the investiga out the United States "'? re b11s1ly scll,ng the
ed lou d a site , y sold for $zo,•
the press son1cthing to shout about. . It shout nd Ion• srnall invcston. Doher ty s per son al comp..n
., U . ~hi ngt on cs. ' ,000 stock which had been acquired
£or $ 2 ,750,000 , real-
Th e \ ,estem 01011 manager 1n \Va
· against th lim at, 500 r pan of the
.
that at its
h . h t th e te Iegrap h.1c campaign
e1g
" izing a net profit of $17,750,000. The gyeate
bo ut 4,000 telegrae hold· Thus Doherty
ing company 1 b ·11 "·a s .
. 1ng
b nng

hour to the Capitol. tl,lost of them "'ere Co

a
rm mcssag:
e ,vere frcqu~ ~t '
r proceedswas invested in municipal bonds.
unloaded, and the schoolteachers and docton
buy Cit ies Ser vic e on
who contracted
the installment plan were left hold-
the letters which arrived at the same tim 10
1929.
ical exampe'. l ing the bag when the stock market broke in
abusive.Black produced the follo,ving fairly typ
eeler-Raybuor
"I have not written you before about the \Vh However meritorious the case against the pri
vate utilities
n would cicr
bill becauseI did not think that any sane ma made out by Senator Bla ck in his investigation
and however
this bill seems
approveanything so drastic and destructive as salutary the results of the inquiry, it should
be noted that
be." ss and are not
to
of the wimesio the utilities arc still in the lobbying busine
F.dwardP. Cramer of Plainfield , N. J ., one without power over Congress. At the 1939
session they were
had tried to
before the Black committee, confessed that he able to threaten the Administration's yardst
ick progtaui in
a of inspir- 11uianDrucoll.
.U the Electric Bond and Share Company the ide the Tenneuee Valley and elsewhere. CongTC
create popu!Jr the telegram
illg a ''whisperingcampaign designed to the man who started Black on his inquiry into
llllpCiCJathat the New Dealers and particularly the :-,c,1 &auclwa , sbeaten with utility money in the &nt
eJectioo
discrediting
DerkNP-cbiefareeither incompetent or insane, after the investigation . Senator Walter Georg
e of Gecqia
ceMfully~ Hopeons and
diem in the aame way that Michelson so suc .... helped by utility money in 1958. The
cr..r.d Hoo,er." Cramer said he encountered
sales rCIIJI· _l turn on pttllme
r.....,,t:11_,1ltil .
M aeIt thec6a of Elecnic Bond and
Share, but noted btrr
._ "'daaewa a whispering campaign started
to uy io
ent 1131
cmviaoLdie peopleof thia country that the Presid
andmenqlly weak." .,
_.. p 1JD,
WJ6 ... ...., ..... .,.., ~ Black~
 '1' 111(, :;NA l\.l' Oil, Ml•N
73
~1cKc•"o11 &. .Rob hi11, hat! ;in ,·,ii,n ,l Il I.< l t·un ,1 t (
ch,11 I
ot ll
·d ·11I
WI
ol it s •('( ►r11 1wu1cn~.
soHl "'
•
t.'V<·n tl I
l()IIK I 111;111 0 I
nu
1•" 1 ,,iit1!-\<0111
1,,11111·s w1 ·1t· ch1t'<l<'dhy I\ ·'l>ll\l. dt.·,,co1h
Y
hot' (\,r11,1 .. •
' (t' l( , () r c•xco111•1< ,~ .
,,.,s ror cx;unpll', th e r.11110 11s CIM' or I•\ · •
111> '
·J'h<'•C , . " ,x,, Sul
•1'l\c S11akc--Oil11cr\ . ·,c1c. Scarcely . a y,·ar hclo,
,.1.1111 .
c C osH'
.
t stt t>J>< ·cl 11n o
111
· . and 1,rec1 a s1ug 111Lo l11s hc··id will
hiS 1):,11II 0 0111 I. . ' I tol;tl
. , of one person, I us sensauonal rcn1cdy had k' ll d
F. o,,:,:A11, Cl>sl'~R. P1't·sidcnt of i\fcKt'sson R:R.obb" •\S11:Il IJCS

,
. ' I C
. . . ' , . u,s. Inc <• rec persons and con1nb11tcd to the death o[ t
sh.At hunself 111 D<'l't'tnber of 1938 \\•hen offic1als c'i··~ " , cnty-t11 ' went y
.l ~... overt(i
.. v • . ~"..
sc 1
others w110,
unlike Coster, were not
.
eag•cr for d"atll
..., • ,c
·r,
th.,t he was in fact the 1nb;1l clue£ of the not orious swi, dl'
. • I . l"k I 111g . . ""S not a l\1cl(csson & R.obb 1ns produ ct. Two llun
{amity ;\{us1ca. For s01uet ung 1 ·e te1~years Coster had bee11 f\1)(11"'"' • •
drcd and forty gallons o( 1t, tested for palatability but not
milking the drug co1npany by the s1n1ple device of d .
. "ti . 0111g . effect on any part of t11e hu1nan anatomy beyond me
non-existent business '\'l 1 non-existent subsidiaries through for its ds had been manufactured and sold by S. E l\ia• -
a non-existent crude drug deparuncnt, ,vhich on the books taste bu , . · ;,,-
sengill Company of Bristol, Tennessee._ The local medical
had sho,\'n a consistent profit over a long period. Price, '
sOCiety was outraged ,vhen Mr. Massengill, a leading citizen,
\Vaterhouse and Company, one of the nation·s forem0$t
was"persecuted" by the government for distributing this
accounting firms, had vouched for the authenticity of the
lethal brew. Harold vVatkins, the hireling chemist ,vho
crude drug department's accounts. Many faces were red.
actuallycompounded Elixir Sulfanilamide, a normally sen•
Great was the surprise and the chagrin.
sitive human, committed suicide after contemplating for
Coster, ne J\.fusica, had been an apparently exemplary
( severalmonilis the consequences of his ,vork. Massen!<ill 0 • his
leader in the wholesale drug industry during the period of
) employer,the man ,vho ,vould have realized the profits had
his domination of l\lcKesson &: Robbins. His firm was an
the drug by some happier chance proved harmless, was
influential member of the Proprietary Association, one of
elected president of the Bristol Chamber of Commerce
the most powerfulof the trade's various organizations. The
withina fortnight of Watkins' death. He accepted this honor
firm had been called by the Food and Drug Administration
I fromthe business leaders of his community with becoming
of the AgricultureDepartment for selling misbranded, dele• I
terioua, substandardor adulterated drugs on nventy-eight
modesty.
occasionsbetween 1928 and 1938, to be sure. Measured by McK.':"°n
8c Robbins was innocent of anything compa-
the ethical standards of the trade as a whole, ho,vever, this :e ~th the Elixir Sulfanilamide affair although it had
wasn't a bad soore. Food and Drug officials ,vere genuinely
amari when this record of McKesson 8cRobbins peccadillos
was lleizeduponby the daily press at the time of Co~ter
'5
•
' ::1
rur
=di
~
viaous, useless nostrums to home-remedy

lllChdive::
addicts the
among them a concoction called Tal-0-Rub
the label on the package, was a remed;
ev:p,4weu furtherproofof bis incorrigibility. They p0inted disorders as cold in the chest, rheumatism,
71
74 THE PRESSURE BOYS
and lumbago. Neither was it guilty of pedd .
. d ed t h e1r
· v1ct1ms
· · ling coslllet·
that bI1n or fruits that sIowly tes
hundreds who ate the spray residues which Poisone
the skins. The McKesson 8c:Robbins scandal ~o,vers left Od
. ' in fact n Burling, Rubl ee, Acheson and Shorb 1
more than a lurid footnote in the America h ' Wasn
. . f h fi n orro o
that 1s the history o t e ght for government 1 .r_story '
0
food and drug distribution. a P hc1ngo(
Until 1906,
. food and drug manufacturers,.., ere fr eet O
to the public any manner of snake oil or facto ry swee ·sell
bearing any sort of claims, however fantastic on th . Ptngs
1 ' e1r lab I
That year Congress, fina 1 y surrendering after a Ion _es.
by Dr. Harvey W. Wiley and other crusaders , passedgaSlege
I V1rg101
giving the government some degree of control over aw
facturers who could not restrain their cupidity en m;nu.
1
keep obviously false claims from their labels. But th:ug to l
stl'11 free to ad veruse · t h e1r
· cure-alls through mediaYotherWere )
than the labels and the governmeat still had less than ade,
quate control over their formulas. Moreover, the law was
filled with jokers which made it next to impossible to accom,
plish its simple purpose of requiring honesty in labeling and
harmlessness in composition.
Through the years a little band of enthusiasts in the Food
and Drug Administration and what allies they could enlist
among consumer organizations on the outside fought for
amendmentsto plug up the leaky old Wiley Law. They
madea few minor gains. But they also made po,verful ene•
mies both in Congrcu and among the well-paid snake•oil
lob..,.._ Some of the nostrum makers had become multi•
d
.apDmmiraselling their wares to a gullible, billboard· aa
· public. They were lavish with the
~ IIOkeepthe governmentout of their business -
- lobby became, and still is, one of the
heeled in Washingtoll•
THE SNAR.E•OtL MEN
7
> can afford the services oE such orname ts 5
rt •on as Donald R. Ri chberg J ~ n · to the legal
rofess1 . ' . rucc Rre1ncr
P Covino-ton of the eminently respectabl ~ • and
r1arrY "' c n nn oEc
ov-
. o-to11, . C · t also has
11
" cl1 friends 1n ongress. An1ong those on ti1e .1ns1d
1i.auo . e oE
~e Ioog·d~a~vn•outfood and drug battle, _Bennett Clark
,r soun 1s known as the Senator for Listerine J .
of 1nlS . , ostah
. of North Carohna as the Senator for Vick's Va ·R b
13a1leyVandenberg of· M'1ch'1gan as Senator for ParkepoD u. •
ArtI1ur , av1s;
,iead of Ne,v York as the Congressional advocat f
I a111esIV• e or
Jpoan's Kidney Pills and Mentholat~m, and Harry Byrd of
. . ,a as spokes1nan for the let- em-eat-spray-residueon
. . .. · -
their-appleshoruculturtsts. The. onl'. surpr1s1ngname in the
groupis that of Mead, ,vho ord1nar1ly keeps c~ear of involv-
ment with the property lobby and serves his constituents
well.
Byrd is himself one of the biggest apple gro,vers east of
the Mississippi.He pays his workers the "prevailing ,vage"
for orchard hands in Virginia, ,vhich is to say that he pays
them miserably. But he doesn't ,vant to underpay them in
the fall for washing off the poisons they have been underpaid
) to apply to the fruit earlier in the season. Representative
ClarenceF. Lea of California, Chairman of the Interstate
and Foreign Commerce Committee, to which the so-called
Tugwell food and drug bill was referred, did his best to
pull all its teeth, much to the gratification of the corporate
£armers of California, who not only underpay their workers
but systematicallyterrorize them when they dare to protest.
I
~y for the veterans of the food and drug
-ll.oQsevelttook oflic:ein 19ggantimsin.
 THE PRESSUR E BOY S

·nto key positions in various governm ent de

' THE SNAKE · OlL MEN
7'1
uated J Panrn nstitute, found ed i? I 93_3 by Wh~elcr Sammons, an associate
up of idealistic young reform ers to whom pro · ents I f Charles vValgrecn, Chicago chain druggist. Walgreen once
a gro . h" Peny h
n strinas tied. In this group , "' 1ch came to be tao, ad 0
atched his niece ou t of the University of Chicago with a
o epithet
" "brain . trust, " was R ex f or d G . T oged
ucnvell Wit •
,,
t he . o· , Who sn . ulll of clatter about that institution's "Communistic"
President named Assistant Secretary of Agr· 111 ma"un
ndencies. Later he en d O\ved t h e U n1v. ers1ty.
. Charles F. 1,fi.
th e . . 1cu1tur
,vhI·1e Tu co·rwell took no acuve W G
part in the con trove
rsy over
e. te then director of the San Francisco branch of McKesson
chaeIs, , .
reuulation, he encouraged . • Campb ell, chief of bbins, no,v Coster s successor as president of the com-
" . . · d the & Ro one of the or 1.g1na
. 1d"1rectors o f t I1e Institute. Osten-
Food and Drug Adm1n1strat1on, to . raw u p, ,vith the he! as
pany, w .
of legal experts, a modern, streamlined version of the ol~ . the prim ary pu rpose of th e Institute was to protect
s1b1.y,• ate dru ggists,
. . 1u d 1ng
inc . sue h cut-raters as Walgreen
1906 law. It tightened the loop~oles throu gh Which the legi tJDl . '
medicine makers had been cra,vhng, exte nded the stlper. ompetition with ,vhat were known as "pine-board
rroDl C . .
visory powers of the government to cover cosmetics as wen " and considered d isreputab le because they undercut
storeS . .
as food and drugs, and established for the first time the prin. the cut-raters. Actu ally, the organ1zat1on devoted itself to
ciple that all food and drug advertising, ,vhether on the ttacks on the NRA and later on the T u~vell bill. Inciden-
label or elsewhere, should be subject to supervision. Under
this proposed new law, too, the government ,vas given
limited powers to dictate what drugs could and ,vhat could
I ~lly, opponents of the legislation in sisted upo n associating it
with Tugwell, believing, as did many other of property's
thinkers,that brains were a disqualification for public service
not be stirred into patent medicines. and that the solid people of the country therefore resented
Between the time the Campbell bill was first introduced brain trusters and disliked all their works.
by Senator Royal S. Copeland of New Yor~, and the time Kremer,as chief lobbyist for the Institute, was generally
a modifiedversion was passed by Congress 1n 1938, ,vash- understood in the trade to have received $40,000 a year as
ington was treated to one of the most furious back-alley well as credit for creating the Tugwell bogy. What is defi-
legislative fights it has ever seen . The food and drug lobby I nitely known is that Kremer made a public appearance
stopped at nothing. Newspapers and magazines, fear~I- of against the bill before a Congressional committee in 1955
.biog some of the preposterous food and drug adverusmg and persuaded his pal, Alfred E. Smith, to make a speech
~ was one of their principal sources of revenue, threw againstit. When Kremer's activities were called to the atten-
• full power behind the Iobbvists. Congressional repre· tion of Roosevelt, Kremer left the public appearances to one
,. · ble
of the industry resorted to every conceivaf th of his associates,Herbert M. Bingham. In 1955 the Institut.e
a: • sso e set up a so-calledfact-finding committee to study the pro-
AM- to undermine the eu.ecuvene
'"""'&~ •··sofa
food.and drug legislation. Among its membersw
1baob the counter-lobbyingacuv1ue the-
to
• organir.ations,
an acceptablebill never
JlbJ!dd;
._n of the New York Collqe of P
, who hid behin~ academi~l'OMII;
~ into law. 0 rug
JDdregulationlobby wastbe tis- -trtnditioa.
 78 THE PRESSURE BOYS

THE SNARE-OIL MEN

from William Randolph Hearst's magazine 11m .
, ericanD 79
gist, for which the professor conducted a mon thly d r~g. . not appear on the labels of these proprietaries, however.
ment. Dean Charles H. La Wall of the Philadelphia Cepatt. didThe Di•uo-Instit
o
ute was fully .
supported in its attacks on
of Pharmacy also was one of the original memb 0 llege ,r o·wellbill by the Propri etary Association,whose mem-
the • u., · · 1 ·
committee, but he quickly resigned. ers of the . 1•s a sort of sooa register of patent medicine pur-
bership · h f d
J· H · Beal, a member of. the board of trust Its president during t e oo and drug fight was the
. ees of L veyors. nk Blair, the big man of Castoria. He occupied in
United States Pharmacopoeia, as chairman of the fa fi 111 e late fra · · bl ·
Ct• nd· industry a pos1t1on compara e with that of the
committee, turned his talents to the drafting of a s b . ing the drug · 1n
· d ustry. Ster 1·1ng P rod ucts, of which
. was denounce d b y t h e St. Louis. Post-Dispa
u Shtute , f Uers in the 011
bill which Rockee b si'di ary, not only
1 Vn Centaur Company was a su
a "transparent fraud." This bill was introduced by RteI as Blair's O\
. lied what babies cry for but also such well-known
sentative Loring Black of N ew York, ,vho since ha epre.
. . s sur. contr~etaries as Bayer's Aspirin. Blair considered the Tug-
rendered his seat 1n Congress. He is frankly and openlyin propri 1 .1 . . . h" " .
bill "the greatest egis ative crime 1n 1story 1n 1933.
the lobbying business now. well . tion
. bl"1c1ty
. ffi
That Y ear his assoc1a set up a pu o ce
The Institute also set up a committee on public health • tailed Earle A. Meyer, formerly of the J. Wal-
' and ins
which had about as much to do with public health as does Thompson Advertising Agency, to turn out canned edi-
Lydia Pinkham's Vegetable Compound. This household ter . M , . . d
torials against regulation. eyer s op1n1ons turne up as
,emedy, incidentally, was touted as a cure for all female editorial pronouncements in such widely scattered papers as
~plaints prior to enactment of the Wiley La,v, but is now the New York Journal of Commerce, the Atlanta Journal
ended as a vegetable tonic in conditions for which and the Houston Post.
tion is adapted." Among the members of the Blair's publicity machine, with Meyer turning the crank,
th committeewere Robert L. Lund, representing not only ground out spurious arguments against a decent
done-time president of the National Association law but also encouraged revival of the so-called "red clause."
whichhelped out the food and drug lobby Thia wasa clause in advertising contracts which declared
everyother property-propaganda group that that enactment of the Tugwell bill would be sullicient
~ in the last quarter century, and O~r ,v. for cmcellation.The same device had been used ·
of the pontifical Parke, Da~s and
againatthe Wiley bill. It ~
y known that a substantialpart
;,ll~and
Davis is the manufactnreof n~
n,iny, which
example,this CODlr- ~ :.;nO'
instiwtiooal adv1:1........,
with the familydodDf,
fat
--
and
Jednttl'·
.
 THE PRESSURE BOYS
So THE SNAKE-OIL MEN
81
Th ompson was retired to his Ohio farm and was succeeded rvision over adverti sing. If one busine
of supe .. ssman was hurt
by a more subtle la,vyer, James f F.h Hoge, ,vho had b
fraudulent advert.ts1n
g of his compet't h
. d i'n the legal department o t e v·ick Chemical Ceen bY tiie .
. . n could step 1n to protect the ini·ured
I or, t e com-
~~ . • o~. m1ss10 . party. The
makers of Vicks Vapo-Rub. Young Hoge and nl . ll bill as introduced, would have left in th F d
pany, .o a1r
'fugwe '. . . c e era!
the real brains of the food and drug lobby. B .
were .. . . Qgeis
credited with dev1s1ng t,vo of the innocent-looking amend. 'fra de Comrn1ss1onall. Its former authority over f ood and
by which the lobby almost succeeded in block· drug advertising but given ne,v and .much . greater regu1atory
ments . 1ng powers to the Food and .Drug Adm1111st ration · This feature
effective legislation. Hoge and Bla1r we~e t~o cagey to fight of the legislation ,vas vigorous 1y opposed not only by the
all regulation. They concentrated on cr1_pphng amendmeiits industry but a!so by th~ Federal : rade Commission, which
and thought up ingenious arguments with ,vhich to ration. wasjealous of its exclusive authority to keep advertisers hon-
alize their position. t even though it had never been effectively used. Chairman
Their prize jokers first turned up in a substitute bill ~;in L. Davis of the commission, brother of Norman Davis,
introduced in 1 934 by Senator Mead, then a Congressman. Roosevelt'sone-time ambassador-at-large, and of Paul Davis,
One of them, prohibiting multiple seizures of misbranded Nashvillepublisher and banker, openly lobbied against trans-
drugs. was introduced and defended by Senator Bailey. It fer of advertising control to the Food and Drug Administra-
becamea stubbom obstacle to proponents of real enforce- tion.
andpnallywas adopted, but in a modified form. It An amendment to carry out Davis' recommendations was
a seriousjoker, though only the courts can tell. introduced by Senator Clark but it was not pressed in the
Baileyto thank for the restriction it places upper branch. Instead, all advertising provisions were taken
themfrom quackery. Even under the out of the bill by Representative Lea's committee when it
wu no limitation on the number of reached the House and a separate measure, increasing the
authority of the Federal Trade Commission to deal with
Blair amendments denied the fraudulent advertising, was favorably reported. This bill,
all jurisdiction over collat- known as the Wheeler-Lea Act of 1938, becamelaw.
power to the label and the ~ ~ as president of the American N
mric:bowned atock.control
c ·-·"cc.-,;

one of the
becaJDe
,_, The FedeW
freeco111pe-
iioJDe
degtee
 80Y S THE SN AKE•OIL ME:-;
THE PRESSURE
. 83
er . d as n1uch as any dpu ica
bl" et
uon from p1opri al) ood and . r
tlic brothers had anything to do " 'ith it. Oth Pll1lhsh . . . f
of . e1, efite
adveru,1 ng, an ' I o \ course , was OUl1ao·<l b I the
did the sam e thi ng. I I b"I . ntan, ,.int h.,c
issi on, on :-.ra dru g
. •tous Tu !r ve 1 . ct thi s 1
a, >Ct \Ip ,\
For ex:nnplc, t11c Federal Tr ade Comm
1 • .. _ <>
j111q .
I 1ousckcep1ng lnslltut c. which ptn 1,0 1 1> to be -1
2 Ill .
announced that the "\\'clcdh Grape Ju ice Com 'Y 8.
. Pany r "Good nded l )ri,,," ll ' or1d .'111
19"07 • continu e "ad \'e .. o . ble guide for con s1111e1s. 1learst fou
,ve stfield, New Yor k, had agree "to" dis s1n . reha cou, and 1l)S . •
. t h at ,, e 1ch' s C rape Jui celt1is o and it shortl y bccan1c the 1110,t rau . · tcncal
inferentially or oth erw1sc 1935•' . .
t the produ ct alo ne or 1.11 a of die Tu gw ell bil ls opponents, sci 1·1ng as niouthpicce foi
cure for excess " •eight and tha f . . . 1 h th e Food and Drug. 1\ dn1inistra~ ti ot\ ant 1 t 11c
. and di et wi ll C l\ab Je cks on bot . . •
connection " '1th an~ syste_~ o e;erc~se 3 na
·e daring of th e leg 1sl auon s frie.nds in Con!? lc..
o -- 1.ca o 1
prote cts one against .
one to control ones " ': 1g ~t; t 1at _it ino•
California was naturall y one of its 1dols.
the only grape Jll ..
anemia, will correct ac1dos1s, and . 1sd .. tce ast in the cause of
. In Decemb er, 193•,. As usual, Frank Gann ett bared his bre
that is certified as pure an d. pasl teu. rize ate the ,-\merican
ered, the ,\.elcl freedom-freedom for qu acks to medic
seven months after th e supu auon \\•as ent peopleand advertise their nostr u1n s in Ga
nn ett pu bli calions.
duct in Goo~
Grape Juice Company, ~dverti si~ g itS . pro Gannett bou~l1t newspaper spa ce to adver
tise his acconiplish-
us elce ep ing , dan gle d thi s attr act ive bait before the obese: ston Go udi ss, edi tor
Ho me nt in get tin g a spe ake r, on e C. I Iou
gry moment or
"Loseweight safely without suffering a hun and publisher of The Forecast, a place
on the pro gram at
If you ,vould like
tating strenuous exercises or drugs .... the ann ual con ven tio n of the N e,v Yo rk State Federation of
e yo ur dis fig uri n g fat , try thi s thr illi ng ne,v way: drink ine is a sort of house
to Ioa \\'omen's Club s. Goudiss, ,vhose ma gaz
mi.xed with
amee-fourthofs a glass of Wel ch's Grape Juice org an for sev era. l pro pri eta ry foo ds, ,va sn ' t much of a succe ss
at bed-time.
one-£ourthof a glass of water before meals and at the convenuon. He ,vas so lustily hec
kled th at he never
nt." vVomen
Nodiingcould be easier, safer, or more pleasa ~ta chance to make his speech, but the
text ,vas distributed
actress, had
,esdm -,ere assured that Irene Rich, the movie JUStthe same by th e Propri etary As
sociation.
i ghtful way.
,even pounds in one month in this del Before Gannett finally ,vangled a place
on the conventi on
and stoc~-
.....,Deel that Paul Davis was a director of p~, Nancy Frazer, a representative of the
"\Vomen's
e aga'.n
iil die WelcbGrape Juice Company. But her ~m•~11t~e for Consumer Protection ,"
had tried and failed
lhouldbe attached to the kinship. Others did m a nmilar attempt. Miss Frazer is the wife
of Earle M
-._6 may be the reason newspapers and 1· ~ agent for the Proprietary Association The .::;
•- g con ~o '.n •
furioualyto keep advertisin d out to be
TradeCommiuion, where it sull ::;:,,~. her committee headquarters turne
where it remains to be proved
1
~trance to Blair's Caatoria factory •
the
. ed fromtha Publiahen' Aandation, trade
comrni-innrece1v ll
~ oea, I.UC .Am,,.ria.n N
--,; Al.-
r vantage
to anygreatead time ia ~t
::whose
pvpaty, probablybaabell"
 T HE PRESSURE BOYS TH E S NAKE-O I L l'-iEN
. . . 85
p ub lic ,velfare, the
. National Editori al Assoc1at • 1.on f dollars on lying advertising if one had
a11ds o . d to tell th.
does th e same du ng for the w·eekli es, and man 1n . ' .'vhich 5 truth about bis pro uct on the label? '\Vhat . d ~
1 whO1e . . ( { • Ul e~d>
journ alists did their bit aga in st the Tugw ell b.ll Y <lvid11a1 or pu bhcau on o · onnulas, ,vhat ab ·
j\nd as f . out such a
most effective of the in di vidu als was David { awrence
lisher of the United Sta •
· ~ mong the
tes N ews, ,vho dutiEull Y spread
I
' Pllb. P
roduct
tlie cIas
as o valtine, ,vh1ch for years had been adve • d 111
. . . . '
s mag·az1nes as a mysten ous slccp-1nducino-sub
. "
rt1se
.
stance?
propaganda that the bill ,vould req ui re a doct ors. prescthe . If t11e formula ,vere
.
pnnt ed on the label, the world
.. . wou
ld
tion for the simplest house h old remedy . Anna Ste ~tp. [ind out that this myste1ious aid. to 1-.[orphe us was ' n oth"1ng
ardson, Good Citizenship edito r of th e Woma ns: se Ito Rich. I than chocolate inalted milk \\•1th a little dried
lllore egg
Companion, made a 12,000-mile lectu re tour r ~e added-
· A · · d · P each1no
Proprietary ssoc1at1on octr1ne. • 4
Charles Coolidge Parlin of the Lad ies' H ome 1ourna[
The publishers sa,v the poi nt . They q uickly adopted the
testifying at a hearing on the bill, d eclared: "We call it 1'
Tugwell bill. We insist upon callin g it th at." Th e sl~;I
paper bosses thought this tactic very slick ind eed. T hey were
tacticsof the rest of the lobbyists. Th e issues ,vere confused
as much as possible. Freedom of pr ess and in dividual was
threatened. It ,vas th e usu al line . Every bran ch of the food
proud of it. In a bulletin sent out to their members in 1933,
drug and cosmetics in d ustr ies and all their depend ents ,ver;
the magazine publishers said: "The directors of the National
!llobilized, even do,vn to box -makers, bott lers and lith-
Publishers'Association, Inc., realizing that there is imminent l ographers.The President was flooded ,vith messages ,varnin <>
danger in the passage of the so-called Tu~vell measure as that Tugwel! would destro y th e Ne ,., D eal ; J im Farley wa:
embodied in Senator Copeland's bill, S.1944, are definitely assuredthat lt ,vould break up th e Democra tic p art y; General
~ to it in its present form." They appointed a com-
Johnson,one of property's best friends, was app ealed to on
~ttee to "protcet publishers' interests," ,vhich included,
the ground that the Food and Drug bill ,vould inte r fere ,vith
othen, Lee Maxwell of the Crowell Publishing the recovery program of the Ne"' Deal • A n arc h"itect wrote
.
lied A. Healy of the Curtis Publishing Company, l the President that he had received his first commission ·n
of Time, Inc., and s. R. Latshaw oEthe But· three years-t
th Ian h o d es1gn· a patent-medicine factory-but that 1

• spokesmanand was extremely hel~ful inethpT ad fallen through because of the threat to business
e ugwell bill.
original Tugwell bill the secuons Someof the argum .
declarations of quality stan~rd "aovietbe"
the dru ~nts were that the bill, if $=Dacted,would
,__,1. What wor11ed b g 1ndustry; throw everybody out of jo
f
of canned ouu,i,•
• • OS ManYof we le~ secrets by requiring the ·
provwo. . ed
right of self-
goodsare prodann
i111J11MC1
-.&n.~t -wasthe use,
B (# C. yyua • tbOU·
-.wes.
of spending
:ltl
1•11111H'llIV h,,, t.' ~.,id th.,t !)" p 1·1 « •111 ul .,11 .u lv1•, l h u1R
r 111 1' ',I'll\ KI f>II \.t I',-

0 \V.illlh1rp,1,
l
, l ' t••<I tht' tjlMl ks told tl11• p1rss th .It th1· Cov,, 111 1,,,1 for' n II·,ue. Mt ,'l, Spu1lw1Y,
•
L111u· ,
,., ,n ,,, ,,'1.,•·r\,·t•
\\i ~ " , • • . lllt •l\l 1 • he 1)111 l, 111 11· 111.1111,·tl 1,, 111.,~ , . • I ,
ll')'ing 10 rt·tlllC\' 11dvrrt'.s1ng lO lO p, •1 ('\' Ill o l its fo•
1
hcnnngs 011 1 . . . ., ,p,·1·, i .s,;.;tu1,,
11 a1 jt 'fl l C
speech wa s p H p ,u td>. by. ll c,r1.,l<l l\111k1·• leJ11 . I<Jr
J JYl\l
voluine. Generally speaking, th~ clrng cro, vd look caic 0 /11e1 · , L·,cc Cnre. Waltcr .I ,Lk1n
ewspapersand the canners de h vered lh e ,vomcn ·s rnag,.1i .11lhe Lees . , the p~rso,nlily · man, a1s<i
n 1 erformed Cor Bcrn ~ys, making sp~cches bc[ore wo1ncn's
\Vhen General Johnson sent copy to adverti sing a
. 1·
es.
ge nc1e
P and poJling thell'. mc1
dubs . nbcrs Lo hnd ont Lhat ' go IJer cent
in suggesting that t h e1r c 1ents sponsor its pub\'tcatton . s of thelll favored advert1s1ng. Ile wrote a book about it called
1933
one executive replied that he ,vould •
be glad to encOUta o • , Get What We Want .
e use of advertisements supporting the NRA but for the •' Le~ en there was vVillia1n P •.Jacobs, of Jacobs' R eligious
th 1
fact that another department of the government - Agr·lCUI. . ho told newspaper editors what would happen to
• List, w er the Tu gwell bill. .
I-le "·orked throuah the Insti•
ture-was trying to discourage what the General sought them u)ld o
promote.He wrote: "Professor. Tu g1vell, through new leg:;. Medicine Manuf actu rers. John Dargavel executive
tute of . . . . '
Jation,seeks to prevent our clients from makin g the state. f the Nauon al Assoc1at1onof Reta,\ Drugoists got
secreta ry O ::-, ,
ments contained in your advertisc1nents. Unless we are the crossroads dru gstore owners to speak Lo their Congrcss-
assured that this advertising is to be permitted, our clienu . Edwin L. Newcomb, for years a big-time lawycr-
,nen. D1•
will be unable to co-operate ,vith N R.A along the lines sug. lobbyist around Washin gton, represented the National
,vholesale Druggists' Association's interests. Carson p.
gested in the copy you send us."
This propaganda was vigorously and insidiously spread. Frailey, highly paid lobbyist for the Nat ional Drug Trade
No less an expert than Edward L. Bernays, the big institute Conference, tried to put over an amend ment allowing vari-
and foundation man from New York, ,vorked on the project ations from the standards of official dru gs-t hose used in
of tilling the Tugwell bill under the sponsorship of the filling physicians' prescriptions. The amendment was
primarilydesigned to protect Parke, Davis' brand of cascara.
Joint Committeefor Sound and Democratic Consumer Leg•
Fraileyand Horace Bigelo,v, general counsel of Parke, Davis,
illation. Bernays'song and dance was routine: "\.Ye're for
not only persuaded Senator Vandenberg to sponsor their
~ legislationbut this isn't sound." Some of the direct~ri
committee were connected ,vith the Assoc1auon amendment but also rehearsed him in his speeches for it.
Among other lobbyists ,vho ,vorked against the bill were
.Advertisers, an organization employing Isaac
CharlesWesley Dunn , self-styled $ 100,000-a-year counsel to
:tr of Senator Carter Glass, as its attorney.
with a speech for Mead's Proprietary the Associated Grocery Manufacturers of America and the
NationalAssociation of Manufacturers of Dog Food; Thomas
Austcm, one-time secretary to Supreme Court Justice Louis
eventuallygave way to the Natio~a!
ers and Producers, with wh1c D. B~deis, and associate of Judge Covington, counsel to
legislative chairman of th~ the National Canners' Association; Theodore Clark,
Clubs, associated bersel aecretaryto President Coolidge, representing the
88 THE PRESSURE BOYS
THE S N AK E-OIL MEN
Drug Company; 1-luston Thompson , f ormer Fe . d. 89
. . 1 cak unnou cc into a bar o( Ivory soap Tl 1
C omm1ss1on member, representing F . 1'.tadc edaYsn ' . . ' · cy 1c -
. cenamint tiera\
c
1 soJ!l D nald R1chbe1g and ca1nc out very nice!)', 'Tl 1
ch ew1nggum; Colonel J. I-I. IIaye s o f Standard' o· e laxar11/c •ncd o
1a1
. . . 1e aw
JI soaps except those ,vluch cla1n1curativ" .
11 c)(elllPtsa ~ pt Op•
Jersey, representing Flit, Nujol, Daggett and Ra oENew
abeth Arden and others; and Dr. Samuel C p' ~sclcll, F.lii. eriie 5,
'fhc •
Jnternauon a l A PPle SIupp. c1s · _,\ ssoc1atton
. . "'as instru-
· h · 1escou
of science at t e Massachus etts Institut O( • clcall ·n pushing an amendm ent which ,vould have Liedthe
representingantiseptic 111akers. c Technology, rncnt.a 11f enforcement o ffi1c1
.a ls 111
. cIcfi1111
. tcly. It provided that
Even the American Medical Association , w IHe,· 1 pro[ handso. ns issued b y t l1c S cc•·ct a1·y o f Agnculturc . should
. cguJauo . .
to• expose false cl:ums . of csscs
(or the medicinal' pi·o)I crt1cs r b" , ted to court review throu gh a pc1.u fogging l)roccd-
. . . st lJcSU JCC . .
., • t might have kept them Cro an going into c!Tcct. 'fhis
v1tam1nsk1n-bu1lders and similar frauds , OP[lO. d yea '
ure
·11 . . sc the Tu . ker ul,l
was attacked by the St. ~011is Post-I)i,1/,11/ch and by
we 11 b• 1 on captious . grounds, displa ying mucl1tcsamc
h &·
1°. . Allen White's Ern/Joria Gazell e and finally w·is
devouon to the pubhc welfare that it has in its b"ittcr-end vv1 11
killed
.am
over the protests of Lea and l~cprescnLative J ames
'
struggle against group health experiments.
Wadsworth,Ne\VYork gentleman fann er a nd out spoken ad -
Judge Clarence N. Goodwin, lawyer for the Allied MaOil·
vocateof the property -take-all theory of govern1nc11t.
facturersof the Beauty and Barber Industry, Inc., washighl
The new Jaw, ,veakened though it ,vas by the co1nbincd
successful. As chief lobbyist for the cosmeticians, he su[ effortsof the lobbyists and their allies in Congress, probably
ceeded in preventing outlawry of coal-tar hair dyes. The law will make it impossible for a pr eparation like Elixir Sul-
provides merely that they must carry a warning label. A fanilamideever again to cut a S\vath of death across the
brother-in-law of Stewart McDonald, hail-fello\v chief of tl1e country.But it has not prevented and may never prevent the
Federal Housing Administration, Goodwin has entree to \VelchGrape Juice Company from advertising its product as
governmelit circles and entertains the official set lavishl_y
a1'.d a reducer,even in highly respectable ne,vspapers. Nor have
y. The beauty boys have always been w_1se in
the quacks taken it lying do\vn. They are fighting its en-
•ce of representatives. When they were trying to forcementtooth and nail. For every dead Coster and Watkins
taX on cosmetics, they retained Miss Reba
~ere arescores of live snake-oil men ,vho see nothing wrong
by happy chance is the daughter of ~epre• in cx~loitationof the ignorance and credulity of the sick if it
1...Doughton of North Carolina, cha1r01~n CODtributcs
- committee, which drafts tax legtS· cometh to th e1r · own personal prosperity. In years to
':,;:Y
IO-Cllled find as ?,1any holes ~n the Copeland Act-the
.· ety-nine gwell Act -as they did in the Wiley Law.
tile makersof soap that IS n1n good
percent pure, alsoused the
-t soapsexempted froJ11111ore
0 - •
probablyJUSt 1 case
·n
. ·ght
-percentof impurity 1111
 suPERCOLO SSAL LOllllY
91
. coJonYwas not as lily pure as the characters its v1rg1na
vie · - 1
mo . portrayed on the screen.
heroines
'fhe (act is, of course, tl~at Hays was not hired to clean up
CHAPTER 6 ·es although tlus was the excuse, and isn't ex
the rnoto
Vl ' . For more than ten years he.
clean up the movies.
d
Peete n operating . one ofl t te country ,s 1nost elaborate and
Supercolossal Lobby has bee ective Jobb1es.
. T h at is. h .1sJO
. b , and the "czar" stuff is
ff
. d e dressing. He has more t h an earned h,s
most . salary. UnLil
WILL HAYS is well known to every literate or winNew
ow Deal came along, he had blocked every effort in
literate American as "czar" of the movies def edvensemi. the ·t auon
ass leg1s · regu1aun · g t h e 1nov1
·c trust· he
. 'enerof congresS to P . •
morals of the young, and nemesis of wicked mot'10 n-p1c1u. tht had dealt successfully with extragovernmenta~ aucmpts 10
producers. who want. to corrupt the country by inak· . drei,
' ing 1tbi . the rnoral tone of the trade; he had 1nade ,t possible Eor
raise . . .
nous pictures designed to appeal to the baser 1·nst·1nctsin the movies to defy the antitrust laws with 1n1punity and
human nature. ~ays _accomplishes his righteous missiona; impertinence.
head of the Motion Picture Producers and Distributors A!.10- Recently the Justice Department has moved in on the
ciation. It is a voluntary association to which all the large movieswith the first real campaign by government to force
movie makers and distributors belong. Hays is its hired hand. themto respect the antitrust la, vs. Hays has found Thurman
He is paid about $250,000 a year for saving the moviesfrom Arnold,the new trust-la" ' guardian, a more formidable an-
tagonisttitan any !"e ever encountered before. The former
themselves.At least, that is the story as it is peddled in the
Yalelaw professor is moved neither by the great big brown
leg art magazinesof the trade and in the Sunday newspaper
eyesof the movie queens nor by offers to show hint and his
d}eatersections, friends private previe,vs of the latest movies. He is a new
lY.il),ythe movie magnates should hire anyone at sucha
problemto Hays, ,vho has ahvays heretofore found govern-
to police them is a seldom-asked and ~~ver-
mentofficials,Congressmen and state legislators amenable to
~tion, And why the little Indiana poh11oan
theblandishments of the glamour colony. Already Arnold has
chosen for this noble work is even moreol
wonone major victory in a Texas suit against chain distribu -
J be qualified for it when, as chairmanol
t~rs.~e has instituted antitrust action against the so-called
~onal Committee and a Harding cabin~
·th "hot BigEight to force discontinuance of block-booking and blind
ce the party's budget w1 ed selling.Hays may be due for his first tumble but he hasn't
in that shady affair was turn
part The takenit yet. He has had a few setbacks before but has always
ThomasWalsh of Montana. d ?
~ded 0 his feet as the magician who can protect the movies
the aSSorte
dean-upman after . dais ~ous troublewith government.
" and Wally .Reid
"' scan
. that ·•
.,,e times it has cost lots of money, but this he has.No
a mean suspicion
 THE PRESSURE BOYS SUPERCO LOSSAL LOBBY
9:1
one kno,vs exactly ho,v 1nuch the Hays or=n· . cI
,.,.. llation e consu1ncr and exhibitor organi,ations c .. 1
O ost or tl1 [ fi • t<;1tc, 101
and spends. Its resources appear to be practically unr ~ec1s lJl ible purpose o ,g 11ung Lhc1n.,vh"n their . 1 .
ostcns . ,,c 111:,1:
Testi[ying be[ore the House Patents Co1nn,ittee ll'l\ited. l I1c
s are reviewed, the genius of I lays takes on ti .
u 1y 1n1
ago, S. R. Kent, president o[ T"•entieth Century -F ~•o _Yea !\ Olent. e proportions.·
. . "d H b $
organ1zat1on p:11 ays .a .out 100,000 a }'ear lf
ox, said I11
1
·
s
I Pressiv
'fhe Big Eight have been _successf u I 111 · frcc11· ng out c<>mpe-
. · ot ier . the face of the anutrust laws by three devices· !i
bers of the Hays assoc1at1011paid proportionate! ~eni. . ·on JO . . . llM,
sa1·d ti1ey d"d
1 , ti 1e assoc1at1on
· · 's income
· ,vould y, as Ren1
a uu bought up motion -picture houses in all of the k,- .
. . lllOllnt the)'have ,,
. 'b tion points; second, they have forced independent
approxunately $600,000 a year, excluding the cont ··b . to
. C II ttttolll . 'bu tors to buy their· pro d ucttons
d1strt · · blocks of t,,·entv-
1n
of ,vestern E lectric, R. .A., and other nonproduc· ing mem. d1str1 u eighty pictures,
. . the good, ,v1th . a privi- ,
. the bad w·1th
bers. eight to
e of turning back on 1Y ten per c~nt _of the block;
These vast resources have made . the movies the ne,v suga1 1~ d distributors have had to select th eir pictures blindly,
daddies. They are ,vhat the railroads used to be · State 1eg1s- • thtr , .
. h ut a chance to v1e,v t h em or even, 10 . man y cases to read
lators, and a few· members of Congress, kno,v about the •old wit o · ,
a synopsisof the scenarios._T~es~ p~act'.ces hav~ been supple -
in the movie hills. As a result, the Hays boys have been"un.
mentedby other forms of d1scnm1nauon against independ-
mercifully victimized by some of the state capitol gan•s.
entswho were recalcitrant in one ¥1ay or another. Elaborate
iieasures to clamp do,vn rigorous censorship and regulati~n
scheduleshave been set up to "protect" first-run houses from
on motion-picture theaters are regularly introduced .in some competitionwith cheaper, second -run theaters. Under this
state legislatures for no other reason than to collect on l
system,a second-run establishment cannot purchase a picture
nuisance value. In cases like this, the Hays organization is until after the first-run palaces, usually o,vned by the Big
forced to protect producer interests as best it can. Eight,have had a chance to take the cream off the trade in
There are now eight big units in the motion-picture in-
a given community.
dustry: Paramount, Metro-Gold,vyn-Mayer , otherwise known
The block-booking practice lies at the heart of the movie
as Loew's.Inc. , Twentieth Century-Fox, Warner Brothers,
controversy.Critics of the picture industry contend that this
Radio-Keith-Orpheum,Universal, Columbia, and United
marketingdevice makes it possible for the industry to turn
Anist&These co1porations not only make most of the moti~n
~u1es producedin Hollywood but they also control vu• out nine bad pictures to every good one and jam the ,vhole
-of the country'sfirst-run theaters. Thanks to r.I_r . pa~d;wn the throats of distributors and public alike. Apol-
•
mnt
they comprise one of the tightest trusts m
of variousingenious manipulations, they
control over most of the pro d uc1n
· g and
=~ ogu~ or the system, on the other hand, contend that the
can protect their enormous investment in their prod-
takemchano 0th er way-that block booking permits them to
nces on "art" pictures
outpqtwith · and thus to improve their
r.:.1n not actually own- I
over a periodof yearsto contro out bankrupt" ing th emse 1ves 1n . the process. The
 TllE PRESSUR! , novs suPERCOLO SSAL LOllllY
94 \)!',

(act scenls to b<' that block booking effect ivc\y prot

rofits of sleazy " program p1ctu1es
. . .. an d tl1at clintin CCts. the
P . , . . . . at1on ·ous souls in Con gress have been tryin g to d
the pracucc "'ould Coxce the n1ov1es to raise thcu· Sta d or ~ tenaCI . . o
c • 'n a,·c1 A fci_ about block and bhnd bookin g ever since 1928.
True, it 1night reduce the nun1 b er Ot pictures made an 1 s. I
· I · d · c th11s 501netlill~g xtensive hearings were held on a si,nple bill to
reduce employ1nent 111 t 1c 111 ustry tcmporanly, b\\t cv t 11n1e e, . . Ii .
,\t ti1a h pracuces by spcc1 1c exten sion of the anti-
this is questionable. Independent producers ,vou\d i , e" . cecese
. . n, ade 1ert111na cover them. In 1932, an ahnost identical bill
the field if the Big Eight ,vere forced to_ give up the adva,i. 1rustJaws to eported to the Senate by the sa1ne committee
tages accruing to the1n frotn block booking. vorabIY r .
wasfa . dding of Senator Snuth Brookhart o( Iowa. In
The United States Supreme Court has stepped in on I r the pio . . p .
• . two unde . Re resentattve vVnght at1nan of Texas pushing
occasions to call the 1nov1es t~ account for their repressive 1934•w_ 1th . pa House con1n1ittee held hearin gs. In 193G
practices. In Nove1nber, 1930, 111the case.of the United States legislauon,
1he and Senate committees held further hearin gs and
against Famous-Players Lasky Corporauon, the Court held bot11J-louse rted the leg1slauon · · f avora bl y. But st1·11nothin<>
·
that the mo,•ies' method of arbitrating contractnal differences ti latter rep O . . o
ie d. vVill Hays and !us associates ahvays ,vere able to
before "kangaroo courts," heavily "'eighted against the inde- bappeneth House and Senate fro1n considering the le gisla-
pendents, ",as a violation of the S~erm~n Act a ~d a re~traint p.rel'ent e
y· ally in 1938 Senator lv!atthe,v l'\I. Neely of \\'est
uon. in • •
of trade. In the United States against First National Pictures . . • speaking for scores of reform organizations "·hich
V1rg1n1a,
Corporation, decided the same day, th~ ~upr~me Court like- bad got behind the legislation -roost of them because they
wise ruled against the practice of requ1r1ng independents to thoucrhtlocal theater operators ,vould lease n1ore n1oral pic-
file elaborate statements about their businesses "'ith film 1ures0if left to their o,vn devices-succeeded in bringing up a
boards of trade set up by the Hays office. The Supre~e Coun revisedversion of the old Brookhart bill.
(o un'
d as a matter of fact, that the motion-picture industrY The movies put on one of their best sho,vs in a desperate
d. d d effortto head off Neely. Their most persuasive pleaders, in-
enforced its mandates by black list ,vhere it foun in epen . '
ents reluctant to abide by its decisions. cluding newsreel cameramen, 111hom the Senators depend
But the Supreme Court verdicts did not change ~o an\' uponfor the privilege of having their faces flashed on the
• ' thods of operauon. It home-town screen to sho,v ho,v ,vell they are doino- in \Vash-
a,n,ci,lerableextent the mdustry s me bbo .
mgton, swanned through the lobbies. A special car ,vas
"
Im other ways of maintaining complete con~ol. S~ n:
·w...:pndeots have found themselves compeung ,Vlth ' cbanered to take a party of Senators to the 1938 Kentucky
I • . h The bia producers, ~- Someof the principal backers of the Neely bill were
......,_ «mtrollcdby the Big Eig t.
. ,, . tt aet , a f• have soId P rod u
-·":b.
" ch other.
ctions freely to ea
c
have ioun
d it illl'
=.i !
L>acler
to 0 rget the cares of statecraft and roll do,m to
e m luxury. Senator Alben Barkley, Democratic
dD 7fC•i1aginckpt:ooent ,:,uu itors . blockS or
Ft delhable films, whether sold in aat, ~tor Sherman Minton, liberal Indiana Demo-
• a,me of. the best attractions are. Some of the others regret t ed. Barkley, who
 96 THE PRESSURE BOYS suPERCO LOSSAL LOBBY
9'7
had a hard ca1npaign that year, angled for a .
. . f H . ca1npai •11but n one had the temerity to hold out a0oainst ,.,, ·1 t once
tr1but1on ro1n ays, but ,vhether he got it h gn eo11 . the bl ' ht out int o the open. Senator Royals Co 1
broug , . · pc and
disclosed. 'l'here ,vas talk of a $25,000 contrib a~ never bee11 ·t was k told the Senat e he had rece1 vcd J>rot c st• f
ut1on f • l ~r 0
10m
movies, but since it never sho,ved up in Bark! , torn the of Ne111 . n of Wom en's Clubs because there hadn't 1 ..
derauo >cc11
accounting this must have been a mirage. cy s 0 0\ciaJ I thC fe hearings. fie did not not e that at least one of the Fc<l-
1 . 1g. eriough' movie experts had been an employee of I lays. By
. For persuasive hospitality,
. , there had been n Ot111
like the Hays campaign against the Neely bill since 111 <J.Utte erauons h Legion of Decency , a Catholic organi1.ation dl'-
this u
·met e •e morality, had shown a frightening po,ver by.
of a resolution to investigate the movie indus try itl 1 c de[ca1
t le l·lo d tOJJ)OVl
back in 1933. Some members of the lo,ver branch use vote . everal of J-Iollywood's super -super attractions.
. . . . never h I bOy cotung sher organ1zat1ons
. · an d vanous
· p rotestant groups
such a good ume 1n then· lives as they did before and ad
· th"1s reso 1uuon
· of· 1nqu1ry
· · introduced
· by R a[ter Parent-Teac k n up the cause. p o 11t1c1ans
· . . ·were reluctant Lo
b eating 1s0had ta e . .
tauve. 1 1am I . s·
w·11· . 11, t 11e d octor -dran1atist-stat
11·ov1c eprescn. a
tanglew1
"th this comb1nauon.
. . I. . .
. ' ' es1nan , 'fhc Hays group, knowing 1t ,.,as on t 1~n 1cc, did no stomp-
from Ne,v York. House 1nembers . d1dn t have a chaii ce to in the Senate, ,vh ere the bill ,vas passed over-
take advantage of the Hays genius for entertainn1ent whena ing arou nd
•ngly but ,vithout a record vote. Barkl ey arran<>ed to
similar resolution ,vas introduced by Repr esentative Sani .~w I o
. a roll call so he could keep both the friendship of the
Hobbs of Alabama in 1937. That time the measure was pock- waive . .
eted in the Rules Co1nmittee by Chairman John O'Connor moviesand of the reform organ1zat1ons. Inste ad, I-lays quietly
' madearrangements to sidetrack the legisl ation in the House.
who gave its proponents to understand that the 1noviepeo- i
pie ,vere his friends and the 1-Iobbs resolution had no chance This was neatly accomplished. The Senate bill \\<as referred
to the House Interstate Commerce Con1mittee und er the
of getting by him.
"For "'eeks l\•foving Picture Trust opposition lobbyists chairmanshipof Clarence F. L ea of California, u·ied and
have overrun Washington as the locusts and lice overran the truedefender of the motion picture industry on other occa-
land of Egypt in the days of Pharaoh the King," Neely said sions.Lea sa,v to it that it never reached the floor. Just to
in demanding right of way for his bill. "If some of thesegen• 1 makeassurance doubly sure, the Hays organization kept in
touchwith John O'Connor.
tlemen do not stop threatening members of the Senate wh_o
are candidates for re-election this year, and abandon then Had Lea lost control of his committee, O'Connor ,vould
improperinterference with the processes of legislation'.an ~ve been counted_ upon to stop it in ilie Rules Committee.
investigation [of the lobby] by a special Senate con1nuttee Pr~;norlat that time ,vas still chairman of Rules and as the
ent ater comment d h '
will be requestedwithout delay." in Congress
. e ' t e moS t effective obstructionist
5 \es
.......: • • L--t produced momentary results. Senator I-I. t~
.1....., un,... h • Of r,,ta1ne In tbe 19S9 session · ili
n..:~of New Hampshire, Senator Wallace W ite d' tun-troun,dstarted a1'lw1 a ne": Congress convened, the old
~- .ch. ahvays rea )
,.,,~ ~ ~ Arthur Vandenberg~fsedM1 i~us' ob].ectionsto ~..,. onthe bill dover again . D esp1te
h-:a- · all the previous
die propertylobby, ra1 vano an all the background of delay, Senator
 C)LO~SAI I 01,n,
suP£RC
PRESSURE BOYS
THllt
g8
el er of l\ fo nt an a, chnirmnn or the
Burton K. \V he
r ne w he ar in Inlet~, . ·ie tr ow d ha ,c ,ho\\n a '"II
tee, called fo m o,
Commerce Commit nv il y :,
0
~ the legis. of 1.hehighly ~aid 11 01
1 dc r 10 huil<l "I> ltp.lH,l
m it te e he 1r1non t• )
lation. He appointed
a su bc om
,.. _ cl~inaa~in..,. .. I IIICpal" t "ith 1.he .
S()pl
of S ou th .O
ton Ed"' S m it h '-'<lto Iitic.11potenC). n a, an ,1111-\cl
the Neely bill: "Col . rl es ,v . T ob e_'· Chair. I ;ngne
an1ple , w as _w el l 1. .n ow
man, Barkley, \Vh,te
, Neely, an d C ha
uOl'~55oril, faycr, for ex e R cpuhh< an pa, 1.·, in ( ' ,1 r,,. ,
af te r \V hc eler had .. > or~"·"- on of th • • II.
1:~-cti
r '-
do ne •
as • Illvisi. ted ""'~ at di,ninated
Hampshire. This w iv ed by th e
1,0ufi • O'C
O t ~art 11 1 th e ca 1n 1' .a 1g nth
be p 1easantly rece ~IC~! on)' 0fibC ,cc)a prominen al ,ccne in , 9 .,• 6 .
fomia and had ,en by th 01 11 th e na 11 on
n ,vas offered a job d Epic
j ti.,· i fl
ed , \ \'h ee le rs so e 1novl'S
1 l{e pla).ine1aJ•r an .
w e, ov e1 01h,·,, "ith
Inde on S me an d l1 1s po
didn't take it. !Jp,o l ..-.it11 l\fa)•er's inco · •
l po w ,• r at c:unpaign
es R oo se velt , the Preside nt .s son ne
ble incomes is per se
a po hu ca
By this time, to o, Ja m . · ,., •.\II) ,vith the ,·andid.nc,
working for Samue
l Goldw yn , an d Jo
ai
hn
ns t
B oc
ad
ttiger
optio~ so fn•in-...~ (OIP~;he is ..-illing 1~ sh
e
a~ e
11 1
hi
19
s
38
w ea
w
lt
he
h
n 1-loll)wood stuili,,• .
.il papoll '•>
ag u~ ch . e At the
um
of the P resident,
.
"'as ad ,•
· auon. B.oett,ger, w 10 on
·1is
1cg
is in g
l ce w or ke d
0
£ bl0c•1 '
~ ~ •·
ren:1ring to cut th
.
eir $8 0, 00 0 ,0 00 an nu
t o f ex·tras an d min or pla)cr~
· _
book in g
fo r th e H ay s of fice, finally bor tbt wcrthep ·
,-taking tt mos yo ti u
executive cu 11•
s:b~
d la te r ird-
Chicago Tribut1e an r. As an inOuecauic , In c. , "· as m ak in g •
attle P os t- lt 1t el li ge t1 ce re parted that Loew"s ,
editor of H earst's Se lt free to wire
oat_
l'one1y en t o~ $4 ,7 '.2, 40 0 a year in sal.u ic
r, he fe
tractSpro,-iding for
paym
an d disinterested
pu bl is he
fe ct that '\' cstc tor I l\ es . \ et 23 ,0 00 extras ""OI 1..ed
th e ef rn exec ut
H om er T . B on e of \V asbingto n to
andbonusesto its 14 top go t fo r th ei r ef forts a total of
ld st an d by the movies. I
a fuUyear in Holl)'ll
"OOdand
representatives sh ou
ly fo u n dit tr al C as ting Ol11ce.
is pr es su re ar ra ye d against him, Nee $!.tSo,000,according
to th e C en
on , 1·hich the
\Vitb all th e su bcommittee to ~ vert is in g ca m pa ig n
n g ti m e to ge t th Although the big ad s t-cntcrtain-
impossible for a lo in gs , ,v hi ch featured the the m ol 'ie s- ar e -y ou r- be
even after it had
held ne ,v he ar
fi lm star and moricsspent so much- an d pr of it s fell off, there
v, in gr at ia ti ng a notabl e fl op
testimony of R ober
t l\fontgomer mcotampaign-w~s salaries and emol umenu.
ld . ~ fo nt gomery assured the on in ex ec ut il "e
ct or s' G ui wasno gre. atreducu
head of the Scrttn A bl oc k bo ok in g would throw . at the to p ex ec ut il 'e s of tl1e mo vi·es arrange
committee that elim
ination of It a DOlOn. ousth . se lves • E vent1e1tr . •
. B y ki ck in g up a fuss on tht es of the ca k e am on g th em
ut of jo bs IOOll upbig slic
many film workerso kl ey fo r ha,ing time ID .
th e ,v ho le st or y. But the . t II
nd chid in g B ar
motiilOul salan?
don't tell >trase
floor of the Senate a ti m e to at te nd co n1mittcc
lghenlaid alon gside tho se O f th
e underpaid ex •
attend the ltentud
:y Derby but no legislationom
CIIOllw . s
d e d in ja rr in g th e ,h,.a,_ L-
.._.., wor""'11an 1 d nunor pl. a}.ers. ome of the big money is
a: 1:0.. Neely aga
in succee
su a: ec de d in pa ssing it, this WDt plowebdad . to poh.u.cal influence.
al committeeA . nd again he .......... in
46 to 28 . B ar kl ey m ad e g o o d on his "- .: lau wastesu·i..,'l·ng before. th e sIll.I·th subcommittee
by a. ncord wee of ~linton'. how· ·
m1939,theTreasuryma e pubhc th e b"ig corporate salary
d
*• y vo
Gllfie ID the movsiebs ebfore, action came too late ,n tht
ti ng ag ai n st it .
Pl
FDII for 19;,•7• Tb lS · Iist sho,ved th th
e movies p aid
<Jle I far it. A at
J IC ta k e u p th e legislation.
far die R O to
 SUPER COLOSSAL LO'Snv
BOYS HH
THE PllESSUllE .
100 S1 ;S .81 G; ni ck Po,,·dl I\\"
ee sa lar ies of $200 ,00o a year s. Va n D) 'ke (.\ [eu o)
ed as Ar hn i,; ton "'' 1
13111 \!,l1 l\l~u,,
forty of the six ty- thr W• 49•. Robert Taylor-list
.\Ia)er, as prod uc tio n dir ec tor of Lo e,v 's, In c., got th:rh~or,. 6,t Ja ck Co n" ·ay ( \l~ u o '516::,·r.,n,· 1-ra11._ ,. I lo ,
•ghev 7
$• ,61; k . \1
salary paid tha t ye ar to an yo ne in the Un ited Stat
e,-s. $•73• ) $ 1 66, 20 g-' B. II. ll}m an
.\l c·t ro ) $i6 · t·G ·)
, .:.> • ,ll <>1k1e
wa s s~ pp lem ~n ted by a little matter of Si ••61, $ 6 16 · Ca ro le Lo 1nh .11d t p ita . $• 'I <>oo,·also
Ii·
753. This_ ,750 ~-
,.0 ) 1 4 ' 4 ' • ck; Sant G,ol~h,·)n (S. G. I nc.) $i<... o.,o
as v1 ce -p res 1d en t of M etr o-Goldw yn.:-.t a}er31r·.
paid to htm
mo re sa
•
lar . '-<>r. (lt· ,00o frolll Selw1_ Ro\ ,I<"! I',11111
ay er alo ne rec eiv ed 0 ide nt or t 111t('d t\1 list\,
poration. Thus M . d States Senate comty .•n 3?
•9 $•.5 OO o as pr es ....
ite a1,0$•6· r len 11 n~ (\ Ie1to) S•fio,ooo,
than all members of the Un >tncd l 11 ocbCentury) $1 62 ,14 4; Vi cto r
addit ion
president,
to Jl,
$6 51
fay er'
,12 5
s sa lar
an d
y, Lo
Ni
ew's paid J. :\I
ch ola s
. Ru bin
J\,f. Schenck , p'rcs~1dvic
·.

cn
e.
1
t z. 1,e on ard (~ fet ro ) $1 Go ,o oo , C.ljrt11c c Bn""' l\letu,)

' 9 S• r,7 .r, 00 ; S. un Ka t, ( \1 , tro 5 1 ,r.

$48g,6o1. $•5 7,Mannix (:\ fet ro )
vie sa lar ies inc lud ed : Greta Garbo (Loe ,1 go n (~ fct ro ) $1 58 .2; 0; I i<"111y Kitt i, ( 201 11 1 , 11
Other mo :; Louis Li
,ooo; A. M . I.O w 1 11 ,,flu,. ol I <H·w\)
$472,499; Marl en e Di etr ich (P ara .) $3 70 Cw ,ury) 1,57 ,444 ; S. Ec km an , Jt . ( l.0 11 clo
,. g.
(Metro) $3r;..,1,., 3 , re<1r1c F . S1r,1 ,r,17 , \1~ 111,1 l., ,y
'•) 56 ,07 4; Jo an Cr aw fo rd n Le Ro y (\V ar1 1e q
(Loew $5 fi5-t,,01; J\, fer vy
March, $534,68 7 fro m Se lzn ick -In ter na tio nal and $ 1,.0
:, ,ooo ; Ro na ld (,o ln1 an (S t l:11"k ) 5•:,"·'""'• 1 d,IH•
"d B crnste1 . n ( Locw's) $020 , 11 G·, >Yr<n s (IICUo)fas2,5 83
50 ,() 00 , \\ ,th<·• \\1 11,ht·ll (~<Hlr
from Paramou•nt; Davi .7 1 CIDIOI'(aoth Ce ntu ry ) $1
20th Century aff ili at< ') 0
un g (2 0t h ( '.c·n1111})S 1•10 ,0 ,,,,.
Skouras (Nauonal Theatr es, ' '·320$i•0 51,,
, ('alUT)') $q;o,ooo; Lo ret ta Yo
0; Fred As tai re (R K O) ·rc l'1 c,1 011 Stui µ,t , (P ,11 ,,)
Clark Gable (l\ fetro ) $289,00 rn
7
l1t rg Amolllthe Holly wo od ,vr ite r, wc
St ro
ro w n (L oe w' •) $2 67,500; JJunt olchv>11) S1oli,:,oo.
711; Jo e E. B
$265,191; D:u ryl $l84,150 and Joel ~fc Cr<"..i (C
00 ; arl es D< Jy er (W arn er)
(Metro) $165,5 Ch
0t h Ce ntu ry ) $t6 o,o oo ; Ern1t Lul>it~ch (Para.)
Zanuck (1 4
Co lbe rt (P ara .) $2 18 ,05r,; \Villi;nn
$16o,8J5; Claudette
ro ) $1 46 ,11 0; & b Hu rn s ( Metr o) $242, Hr,fi;C,a1y ii. l .11 1d <,11t•, li11, ol 1< vc·.il
Powell(Met Nowand then, ll< ",p i11 •all ,!. .il
a. ) $1 18 ,4 16 : Jt' art nt' llt' t.fa, 1)1111.iltl (i\ fc·1r11) 1 y\ 01µ,,1111,,11H,11 lt., vc·
Coope r (P ar las factabout tht " loh hy 11 1K of the · ll.
14) ~1) 1c·vt•,dc·cl ,It .it
tlH ·
JtsS,199. $2 1r,,9li1; c: 1•01 11rR,,h leudouLThcN f'w Yo rk 11 1
, nl rl 11 1
B ut er (1 0t h Ce n1 ur y) 1 1011N.
1111 IH µ,.1111,11
Warner <' of h1 1y 11 1i, of
i; f • c fo
,9 99 : So nj a H en ir (2111h C:1•11111,y) $~10,7~9; =._made a 1:r ,1c ti1
(Para. ) la ae hy hi1 11 1i, i; llt oo ld1 ,11 1, o11 the · 11001 of
an .) $1 10 ,,t 79 : K ay l•r ;1 1ui• (W.1111r1) ..... done a1n1 ply
I
AdolphZ11kor (P H!j;W1•"l1•y R111111ln It, tailed it hrihin 11 It·,ICI( I\ Ill t HI\C oq~,1111/,IIIOll\ .
W al ll1 (W ar ne r) $1 0H ,11 (n
falJf,100, Hal 11111ii of <,l1111Clte·, of
C,..) David O , Selznick (Srl,ni,
....,.,,
k lr111"111,, la ~~~I wh t'n •.h r. l·c -cl c·1 ,II C: 0
(R KC) ) $wo.1,7r,1. ._..I& ca puhluhc ·cl •1 1 <'J>011 on ,111 111v•1,1 1µ,.111011of
111111)ll•t lf f la cb ar in e He pb ur n
11 111«J.-I lh i1kin .
WII fotlrcl lo I <'V<' I I Il,11 11, 0\VII ~('11101 11,c•11
........ (a -J t.0 ) f 19 8, 16 6; Sa had ,I
et ro ) $1 1J o,c >C c:i;11111t
K1 th«-ir 1>' 1y1O II • 111· I1,tcl I ('( ('IV('<I
W.U.. IN ry (M
1 DllldaII btItn .,
on
WIWamLeBaron (Para.)$1Hj,!l '1: conauha111" o11 tc•li11io11, p1
<11111•ft.
 102 THE PRESSUR E B O Y S s uPERCOLO SSAL LOBBY
103
T he Council of Chur ches fou nd that fifty-one a r epresentativ e of th e p ublic in his d 1.
p0se aS . . ca 1ngs
regard ed by th e pu blic as disint eres ted mov ie refo. Persons, able t 0 ,5 organ1zauons . Mr s. T homas G . \>Vinte
liners h ,~omen . d . r, once
received generous expense allo wan ces from the Ha ' ad witb d by the Am erican Fe erauon of Women·s Club
1
.zauon
. . b th £ d'
to re1m u rse em or at ten 1ng mee tings . In °~n.ys or..., designate ecu·ng link ,vith Holl yw·o od, , vas exposed by l'-,.a1-~
cases fees also ,vere paid to these reform ers for SOnie as its C000 rts a tr ade paper of th e independents, as an
tnak.in 0
speeches. g rison's RePf the' H ays organization• · •
111 1930.
O
Discussing these phenomena, the Council's repo . einployee the system of buying up pr om inent churchinen
. rt said• NOT_has ·nued. D r . I rv in E. D eer, for mer execut ive sec-
"Some very liberal payments of expense accoun ts have b · d1scont1 .
• . een t,een h Indianapolis Council of Chu rche s, turned up
made. In a £ew cases h onorar1a were paid for add resses given . ,.n1ofte ..
In no such case except one . . . ,vas the recipie nt in a .' re..,., . while hean ngs ,vere 1n pro gress on the block -
"b'l' . . . posl- . Wash1ngto0 d .
tion of respons1 1 1ty 1n an organization co-operatin g Wt.th 1n . bill in 1936. He conducte a seri es of n1eetings for
•
the industry or the Hays organization. Those r eceiving ex. t,ool:Ulg le at which he adv ised aga inst su pport ing the
ch peop .
c1iur . n the ground th at 1t wou ld pull do,vn the qu al-
penses for travel and entertainment, ho,vever, included intlu.
ential persons connected with social and reli gious organi;ia.
I l ,.;,lat1onO
e~- fil
•
At the close of one mee un g a young man asked
ity of ms.who pays your sala ry f or t h"1s work? " H e re-'
tions. Some of them were co-operating actively ,vith the "Dr. Deer ' . . .
Hays organization in ,vinning support for its co-operation .ed "The Motion Picture Pro d u cers and Distributor s of
ph '
program and opposing censorship. What seems significant "
AJnenca,
' .
from the point of view of public policy is the fact that the In Mrs. William C. Brow n , chairma n of the Moti on
1937
resources of the Hays organization have apparently always Pictures Committee of the Gener al F ede r at ion of Wom en's
been available to insure the presence of indi viduals useful Clubs,warned in a letter to all affili at ed l ocal organizations
to its program at important meetings of their o,vn organ- againsttaking any stand on the Neely l eg isl ati on. She wrote:
izations or gatherings where they could obtain a hearing. ''You have received during the past fort night a cop y of
Important meetings have been 'watched' by trained eyes
and the methods of skilled diplomacy have been used to
I GovernorCarl E. Milliken's 'Letter in r espo ns e to a que ry '
which is the chairman's answer to pray er for a calm, clear ,
promote the interests of the industry among the membership compl_etean~ fair anal ysis of the per en n ial controversy-
nd
of great national organizations. Much of the time _a thewidely misunderstood and misinte r pret ed tr ade practice
strength of the Hays organization seems to have been given of w~ole~lling in the industry-popularly known as 'bl o ck
to cultivating persons of influence, gaining the favor of ~king. We are grateful to Governor Millike n for this
organizations and organization committees, and seeking t~ ~pie andconvincing statement of Facts.•
clear the road of legislative or other obstacles to its pro~am .. 'Weshallhavet 0 keep 111
· ·
• an 1nvesU· F~-tt· mind, however, that the Gen era l
A Canadiangovernmentagency, reporung on . . '""lll on as an OT . .
. • th Dom1n1on, thiscontro . ganization has never taken a stand on
gation of the Haysorganization'soperations 1n e· trust was Il 'llaUo_:ers1alsubject, and that individuals, clubs, city
commentedon the fact that an agent of th e movie
 THE PRESSURE BOYS
104
federations and state federations, in letters to Co
should not convey any impression other than that t~gress~e11
are acting independently and not in behalf of thee 'Vftters
Federation. It might be interesting for you to coll ect General
co .
of all bills that have proposed film regulation (eithe F P1es
• r ede 1
or state). About fourteen bills are pending in Con
would banish 'block booking') and about 56 are ma:;ess (6
. p. ls,,
so far in state ca 1ta .
ed U/i
T he Hays office also has been able to underm·
. . ine the
effectiveness of most of the organizations of indepe ndents
created to oppose
. the trust. T he Motion Picture Th eater
Owners of America, for example, started as an independent,
aggressive group but woun d up under the thumb of Hays.
T he chains captured control of the organization at its con.
vention in Tor onto in 1928 and since then have controlled
it. T he big prod ucers, holding as they do a po,ver of life
or death over the independents, have been able to frighten
off or buy off with favors enough to make most of their
organizations ineffectual.
In its relations with th e execut ive branches of the govern-
ment, Hays has been even mor e successful. Congress has
been staJled in one way or ano th er but the executive depart-
ments have been aJI but gagged. T he Federal T rade Com-
miuion, and the Ju stice Depart men t under several ad·
miniaratiom, have been slow and ineffec tive in dealing with
motion -pictur e case, . Th e commiss ion started a sw_eepi~g
action agaimt the Famous-Players Lasky Corporauon 111
1911, chargin g a varie ty of mono poli stic practices. B~t ~efor;
c::atecameup for argum ent th e Democratic maionty_o
had been u pset b y n ew R epublican appoint·
die cue wasnarr owed down to one charge_-
. d 1n
a ceaseand d esist order was issue
reailtedthe ord er and the case was
SUPERC OLOSSAL LOBBY
105
it before the United States Court o{ Ap 1 .
brougl . . . pea s 111New
,. There 1t rested , the conun1ssion explain· .
yor... . ing l11at it
d the $2 5,000 necessary to pnnt the court record 0
(acke then commissioners,
. . 'V'll ' • ne
of the . , 1 iam E. Iltnnphr e,) , and the
assistantgeneral ~ounsel in char~c of the case, 1''lart in A .
ra ·son were, )Ike Hays and 111scounsel and chic' •d
,l\forfl ' . . . . . l a.1 C,
C c. Pettijohn, pohuc1ans from Indiana . That ,nay or ina
· nave had anything to do with the halting conduct ~
I :: case, but it is safe t~ say that I-lays' connections with
the commissioners did his cause no hann . Cases instituted
the J ustice Department , until Thunn an Arnold took
by
over the antitrust ru·· v151on, h ave b een uncxplain ably slow
a)so. At the moment the movies obviously arc trying LO stall
until 1g40, in the hope that a friendly Administration
will be back in the saddle by that time and all will be well
again.
In a recent Texas case, a Federal court rul ed that the
Interstate and T exas Consolidated Theatres, a chain affili-
ated with Paramount, was violating the antitrust laws by
stipulatingin its contracts that no second-run theater should
exhibit for an admission charge of less than l\venty-fivc
centsthe same pictures the chain had sho,vn, and that these
picturesshould not be used in double billings. The decision
subsequently was sustained by the United States Supreme
Coun . It may prove to be an extremely important preced ent
forArnold.
He was less fortunate, ho,vever, in an equally significant
NorthDakota
.. . case. I n 1937, t h e North Dakota legislat ur e
~ a divorcement" bill forbidding produ cers and dis•
tri u_torsto operate theaters within the state. The law ,vas
sustained
Co b n· .
Y a istrict Court and came to the Supreme
for review in 1 939· Wh'J1 e it. ,vas still pending there,
theUrtNorth
Dakota legislature suddenly and mysteriously
 106
THE PlEssuaE aovs
repealed the la,v, thus rendering tno
S C
upreme ourt. '\Vhat had hap=n•d sot t1led ens ' e i.._
uc(o1•c•
one n1ember of the North ,-- '" lel>'i
Dakota een1e
, plrun 1,,c
• to nt le.\!
I
con1p • d t I1nt the repealer ,vas slipp
atne o·s1dnture, Whob'llttrl,t
h · ,. 1
1s,,;.no,vedge or that of many of his Collen e t I1rough ' • lio111 , Cl I APTl •Jl 7
fl 11 11
on the oor, n\oreover, that the 1novie lobb' gues, Ile chn'lcd
c-o f ,.pny-01r
"'- 1noney.. 111
. a Fnl'!IObnnk shol'tltes dep0ail.,1 11 Activities
,..~5,00~ o , " A crica · 1
the nct1on ,vns tnken. > htfo1t lJ n-1'-'n . ,t the t Jn1tt'1
,1
Governor John .l\loses 1ns urged to Vt•tothe bill • . h1hhy
,o,v opt•ra11111( u ·II dt'R<'I ih1·<I
I ('('!\ ,vc I.
it\1•0!111,1( ~
I
. the legislature
. n chnnce to vote ,,•ith its ")'~•111Ol'll,r tr
11111,i11st r whnl !HUI\Il •hll!,\
' I '
~
10 g1l'e 1, 1 t•tl 11St' (l I I~ I
I"' ~ti. ,,rs 1hr c,1 ,' \,Vhllt • p 111·a < • ho1 t' <l\\'~ ,111
,\tto1·ney Ge11e1·alF11111kl\!urphy plt·:tde<l,vith 'hitn' ,,,toO(lt11,
t'1in, ,,,111111 \' '(' \SIii , •rts ll
sider the effect of rt•peal on the g'Overun1en1'spenclinRn tl,
s,.,11·, \
11 1 1111• 111'-
" ' •11s • •
111
so 1nt' ,,·stlt " ·1 11u·1t·ly ,1~
1111' t l itlc·t ' st•ft 1l IP 1 , •t
11
1r11s1suit ;~'i\inst the Big l<'i~Iht. llut l\lose, sij\ned. lt n1nr ,,, ll 1lini 1111d ' l'ht'Y 111 't' II, f \\11'1'<', l It'
I ~111,>1 1\i 11
· •l'l ly , ysti'lll ll
or 111n,· not be significant that the Go, 1e1·nor is nssO<'iRtcd ,, ·
uult' \111111
,hr111
l tht' p1 ,1t'I 11·:1
lity of II s1111\11111 1101
( '('i1111111.
•
with the sn1ne hn1• fir1n ns the De111oernticStntc.• chnirn1u11 > t>I il \t'11Mis II, Is ut•lt ht'll it h ,11t ht·t•ll 1-1
,i.,1111"'•'' ., 1111 I 0\\1 It 11,1
.u\d that this tinn reprtst•ntt'd the 1novies ln t\l'l\llll\t'l\l1 \1111
. I tu ,1111 I \ ' 1-t· ('(!Ill
•1 ll ,II 1\111sh
, ' 11111I (II \\It 'll\ (l I' I II t' N<'"'
• l(\iertl()tlS, I ' •• I shire· I It'
bt'for-e the l)ist1·ict Go,11·t011 tht• t't111stitntio11a1i1)'uf th~ Ii IS II " \ I 111111111\Cll
1lil'Ol't't'n\~·ntl.1,,•. ' \ nd 11 ntt•> llt'
,11•,11li\' ll f \\I fOI S\11\lt'II
lt is s.1fe to predit·t thnt the n10,•it-$ \\•ill not ilt !cityb)' in ' I \II I lh :II I\ l I \I
llt'.,l. •, 1s1·ls1 n1s1s 11 ll
I \~1 • , I I 11111t11t!Nf,11
•1111'}' I ,
tht• t!l io r:1n1p:1ign, .\ s an i111port,1nttllt'(lhnll uf expre»lo11 t'ht• \ 1111
111,II hl.11tl(· hit I .~ ) ~ \\Ill h
Stllllt'IIIII.' Ill \S 111\t\ t'\\ ' •
.ind thtlt~ht. thc.•rt'<tn ht•lp theil· (\ltHiillate nlon~· h)· sl,n1thll( l<• h,,11-.
.1 1111,11
., I' "11111 h11111lµr11n • ltlr-1 th1•y
i1nd e,·en ficti()n IH111s.The l t:1)·s tifltrt• p1'i(es.'lr,to
nc.'Wllt't'('lll lk i1,11,1lll'l.1111,·11s11~1 I llll l11h11l1t•1tl111 11I n1l11111· \I. 'i1tl01·
\ I
l>t.·n1.,npnrti~n. but llt'1' 'lll't't'ls hnvc oftt-n _pht}'<'tlf,"·otltt$ '"'1111\,hi l'lt'lll lt 1111h1111, II I' es 11p1111 po Ill l l ·11\ 11\1 Ill l'I
' '1\
in 1~"11t t-:11n 1:1.1i~11s. ,11,•t.•~11.1\\'ktl111s, \\c• tll.''\t •~1; s111111•thlnµ allt\\, 1n11. I ':1 ,
, \'h,1te, \'t' ,•lse it d,'\t'$,tht' I layii ofli('(',,,JII talk a lt,t •11>1~111 iht· ' ,nit· 11'.1>111111,• l'ht')' i t-p1·rst , 11 \I "'ho int ~)•111 I1111 I<' ,
t·h:.1nlni;:- up the n10, •lc.'S. Bnt tr10.\"t' of us" •ho like tlnr n10,·1r$ . , • lt'l\l 11\)lll\ t'~lt'\\I II II~ t \ ) I ht'\)\
Ith ..h,111• is ~l' IH' r;1 \'111'1\ t(I C.-\1\hlllt'<' \
' 111111111 1
w11h thrsr 111in111\ti<·S ~ ~ , .. •\n ulo S1\X\\\\ R<'\\
,-.n11,11 ll<'e'tl\lt)t ""Orr,-.Thet't' \1'011 •t ut'
·-.:: ,. un, ' 11\ lII'(' l~OS\>li<htp 11 1
th.in is n«'t'$S..n ·,· to l..~p st:1te bo.'lrds :nu} the t't'ft 11111
1
th,· s.1,11 • •
• 1i!(hls 11111\ hht't 'tt<'$ lhl\l lll\ll\!, ' ~ s.u i\ltet11t1 lll'\ l I1•1I
I" l
•
lir,1ns \'1\\\l)', I•ht' pt 'll(<SS
• "' li11t\\\)•ht'l'Ol\\t',
l \ ' \'t'l' ' ' t'('t't'l\t Ill\
' \l\l
r 1t'I\' p1,,~1·es$\v1· l1lt'I\ \ 1$\
. l11ln111p1·d ," i.' t ,,1 0 '
)\1,1111.111,l
n111s1.\t'\l'S 11s • lt, \ihnhii~l\,ll\\'1\• I\I\ t'I\<. ,
, "C:nt \\lll\11\lst
•
\\\' 1h1•1n1tk '~l'\'t•lt ~· S~'i.ll\l I
. II.e n { \),,o<., C'l,,n,,i·<'~~."' t ,,.
,,e1111 1
ll,1~1
·1s1dQ\'Il'ine h1\t\ 111 11<,l'
l ~
n \:lt·\\t l'\ •("\\ (l\l (' n\el sidesI\ti\\'
Rt1b(' t' l Rt}'nokls o f N O\ ti\ Ct\l'\)\II\,\, \\ ~11
\"'7
 108
l'l,t!; l> •
barker w R:e.ssuR.:e. ACTIVITIES
T ' as open} 110-y8 i;.llrcAN .
_horkelson of Moy preaching it a ur1-AM nergetic and cunmng
'fe,cas, an e d d sue·
~1eces of it in the z;;ana, a diploxna :!uR.epresentati f orange, ·ntroduce an
pies, o C QTessrnao, 1 • · n
ing extent Con ongressional R doctor 'IV :e Jacob ~Jartin . tle-knov111 on:' calling for an invest1gat10
the cordial rece~:ss had becoxne in;;ord. To ,:ha~ ;nsetting then ht . g a resoluuon . . . The best he could
bot . pass1n • an acuviues.
I-Io,vard W. Smi;n the House gave ;t~~ ,vas appare~:tpr~ ..,ded io nd un-Americ Committee v,1as$25,000
c•· sive a Accounts ·
ofst1b' 'cr 1 pinch·pennY B khead a committee com ·
and to make it a cri to create concentrat:~ by R.epresent~olll ·1r m B- an
getout offI speaker
1e .
the established g me for citizens to ad n campsfor alitive
vv1 ia . Why Dies ,vanted to in·
overnmen b Vocate ens andout o ely of second string~rs . the customary objects of
son, ,vho once lived . t_ y force-as did l' overthrowof n0sedJarg . sts and Fascists , Similar
The F . 1n Sm1th's C holllas J r· "<13 te co1nrnun1 methin" O of a mystery. .
ascists express th ongressiona1 d. . effer. vesu,, ·
. vesti!!lluons, ,.,,as so. F. h and Sarnue 1 D ·
ic kste10
by ,vord of emselves in t,vo istrict. uch 111 " • . b J-Iam1lton is . .
mouth by · . ,vays· th 5
previousinquiries y d them laughing stock. Dies flew in
public print and £ ' insinuating their p. ey proselyte
orum and b f ropaganda . f NewYork had n1a e. . e apparently reasoning that a
practitioners of d y orcefuJ direct . into O ti •r e,cper1enc , . h. di
emocracy F action agai the [ace of 1e1 . ld do him no harm 1n is S·
only in strike sit . . orce is ordinar·11 nst • . utauon ,..,ou ·
uauons fiere F . Y employed Red-hunung iep b n rs he had always found it
. ther Sou t er e , .
to put their theories i~t asost vigilantes have a chan trict.Like n1any o . t European iroroigrants, since
are extremely small pota:e~~actice. The Fascists themselv: goodpolitics to _bait d~es~:t devils. He also had bolted the
But they a re b. e1ng
moted and financed b
• encouraged
'
th .
e1r organizations pro-
~::v
1 ' •ere convenient, I
1
;cal to oppose such liberal legislation as the _wage- o~r
h
f otina for 1t \vheo its
. . y some of the country' bill. although he made the gesture o v o
capitalists . Joseph Pew of Sun . . s top-notch
passa ge became a certainty . . . 1 8
Pennsylvania has g· Oil, Republican power in But before he started his hearings 1n the summer of 93 •
the most v· '. iven encouragement to what is probably
when news was slack in Washington and publicity was rela-
. 1c1~us and at the same time the most typical
A mcr1can Fascist or=n 1· • tively easy to get, Dies, or someone else (Vice-President J ohn
. d . . o- zauon, t 11e Associated Farmers. Some
N. Garner has been credited \Vith it in soroe New Deal
u1 ustr1alists
. . like Pei v, f ear ful o f the consequences of Roose-
velt . liberalism in ge ncra 1 an d t h e growth of un1on1sm . . .111 quarters) got a bigger vision. The $25,000 obviously ,vasn't
enough for a real investigation of anything, but it ,vould go
particular, apparently feel that they can play off the Fascist
a long way if the committee merely provided a \'/orkshop
movement ag:iinst the New Deal and thus somehow· restore
for pasting the politically fatal Communist label on the
the profit syslem to their lnisse1.-fnire id eal.
Administration and its follO\'ICrs and on John L. Lewis and
Many Congressmen, principally Southel'n Den1ocrats and
his 11\\tch-fearccl C.I .O. So that was done, with such success
the 1nost rcn ctionary of lhe Republicans, share the Pew
lhat Dies' [ondest dreams ,vere surpassed. The conservati~e
cnlhusiasn1 for grass-roots Fascisn1. Thus it was that the
pre$S eagerly t11rncd over front-page space to the CommuntSl
~hcphcrd11 o f lh e n1ovco1c11t got 1.hc break of their lives at
h1111t.
the close of the Seventy-fifth Congress. Jt is doublfu l whether
Sitnp\yby providing a forum for the Fascist propagandists,
1hey k11cwit :it tl1c titne. 1'hcy were not long In finding out.
 111
l
110 c-r1vt'fIES
TSE P.It.E £1l 1ct.~ " exnent were
Dies became a natio ssua1: llo\'s vr1·"r,,r Fascist mov
He certainly infl. Dal figure and poli . -ont 1.11enof ~e . d would not be P:r-
th uenced d tlcaJ 'fbe little fl_ely ,vbat pies ~al nocent people and ig·
e outcome of s an may have b J>owero.,. ,,;ice- do pree1s er srnear 1n
ome of th een etitj_M.
H e gave the N D e 1938 C resPollsih"q~ 0 • ed to c11aract •
th . eiv eal one O f . ongressio le fat in''11 ssassi11ate h C Metcalfe, a
e skids toward wh its most v;.,. Oal ele,..., · ed-:i · ht Jo n · .
• . at may · '6oro11s '"Olls. u111l ts• • 100k all rig ' the comllllt·
[__ ism in 1940. He ve pr~ve to be a di Pushes do i1orefaC ake (lungs had been put on d ff
of publi . ga the native Fas . saster to Iii.....~ 111s1 to tl1 s reporter ,v~o . . tle of investigator' le _o
aty they wanted in Clsts more of ""'"'· .
0
run e hellUst1c ti d perat1ng
well-financed lobb . two months th the kind c111c og "th the eup A ....,erican Bun ' o
produced without hi
Ylllg and p
H
an tlvo
ropaganda activity Years o(
, aff '"1
,ees st cbarcrethat ~e u·tler government, was or gan·
tl Gertllan ·nu•
.
. . m. e bttilt th . COUidha wiibthe :ration ,vith the i ·ng Metcalfe's general·
party into a household b e mmuscule Co Vt . doseco-op d sabotage r1 . d b
liberals ivilly-nilly into itsugafboo and then thre,v p=llnist ~- a bu"e espionage an ' the most part unsupporte y
The C . earsome aura . nent 11.1n g O
·xationswere st.art in
r g but LOTcedural pattern for w at w
h a5 to
ommun1st tag destro s in . , That set the pro
not only because it stands f: M th~ United States of 1939 evidence.
because it carries more hatefu~ co arx1st _revolution but aho (olloW-
2
class home owner, dispossession· t:::ta~o;:.:: ~o the middle-
love, birth control and ., e a olic church,free Machiavellian old chief of the Metal Trades
civil liberties; to the ca;:~a_n1sm~ t~ ~he liberal, an end of JohnP. Frey£,h A F of L was the first really important
be no doubt . . 1st, t e ring squad. There can Departmento t e . . ., . record a list of
witness
. For t,vo days Frey read into the . e
candidates b that D1_esdehberat:ly sought to destroy liberal ranldngC.1.0 . leaders who, he said, were Communists. Sorn_
y smearing them with red paint.
ofthemundoubtedly "'ere. It is no secret that John L. Lewis
In at least two cases- Governor Frank Murphy of Michi-
hasmadeuse of the skill and zeal of Communist labor organ·
g~, now Attorney General, and Governor Elmer Bensonol
izersin plowing the ground for vertical unionism in the
~•nnesota,_ a Farmer-Laborite endorsed by the President-
mass-productionindustries. Even so, they have always been
Dies contributed materially to the defeat of liberal state
executives. He did his best for the Republican slate in Cali• smallminorities. Frey's attempt to make it appear that C.1.0.
policyis Communist-dictated was ridiculous to anyone con-
fornia, too, but there the treatment didn't take.
Dies opened his hearings in midsummer ,vith the pious versantwith the situation. He repeatedly betrayed himself .
announcement: "This committee will not permit any char• ~tone point, for example, he accused John Brophy, a Lewis
lieutenant, of Communistic leanings and affiliations. It hap-
acter assassination or any smearing of innocent people. • · ·
The chair ,vishes to emphasize that the committee is more ~ns that Brophy is a devout Catholic. His parish priest so
concerned ,vith facts than ,vith opinions and ,vith specific informed the committee.
proof rather than generalities." He then proceeded to review Yet the New York Times gave Frey top front-page space
a full -dress parade of native Fascists. There wa.sno cross- and unquestioning credence. Most of the press follo,ved its
examination of ,vitnesses. In most cnses there was no evi· cxatuple. The greater part of Frey's testimony had been
 112 cT t VtT I ~:s
THE PREssu .. "' •1 vitic:AN A .• 11 N ew spap er
· ~~ Boy ,\n 1er 1c,1
·I,,.
pr int ed time and aga· s 11r1 A ,.
.
found it startling 1n and , r Nc,"•11 , . b " fro n1 Con •
I vas stale stu"' \' 1ssc1111,111 o o c:1sh "111 a ag
• t ,vas p b b ••· et h 11t1,1h:1111 • ,•x1C1rtccl $ 10_ its e1np loyecs .
the Frey testimony as an ex r:r. a ly the arnaiin l e editori ,11 ' ,,,,•it'' ,
,11 l1,1cl , -cttlc a stnk c by o by c heck in scttlc -
ened Dies and h. . P tment in pubr . g success il<I · c1110~ ·ot $ 1,r;o I
1s associates t ic1ty th or G11 , rt ••st'•1' t ·scrn1nt1 g · . . lt csear c , cn1•
potentialities of the p 1· . o a fun reaJizat· at aWak. 1rl'> 1h~l ~ f Co nsu1nCl 5
F o itical gold . ion of st1~hc rac1w:11s•c·k·t'~y cl.1i1n o d IJy the Nati o nal l ,a bor
rom Frey on, it Was catch a mine they had the 1 c J,, pr ove • t
No patrioteer was too ,vac~catch can ,vith no holds ~truck. n1r11 1'.~
t of, ' Lcnns were a p ,_,as no thin g sini ster or s~c1c
,1oyccs-f B ·1rd and t1,c1c . sl knc,v this because he
character of the witnesses p~t t~b::al taken ser!ottsly.a~~- r · 11 s o, obv1o u Y
1tcla110• 1• f\l[aLLhcws , R esea rc11 w 11 en the settlement
could be expected from the Fas . . s on notice of ivhe 1 den
h . cists 1n the at alJOtlL ti e . f Consu mcrs . of the United
t en start1ng. The nai:vete and . wave of reacti ireasurc1 o ,r uh ev.rs' desertion .
ignorance f th on ,,•as de. In fact, ~ a . d d with the management in
m~mbers produced enough boners to lau ho e committee ,,,asma fr m th e u me he s1 e
Wlttee out of face but not th· . g the averagecoll}. front dates o, earch strike. t.
•
l essl y on branding Shirley Te IS COllllIUttee It
. mp
I
e as a
.
Comm
went relent.
• I consumers Res " •as mouva
tte
. t d by personal spleen,
e f th
11s
Chr istopher Marlowe the El " b th un1st dupe, Since Matt1,ews . 'ficant than that of some o e
• uaeanasa far less s1gn1 . · f
Communist, Thomas Mann as a com; d b contemporary appearance was . H Knowles of Cahforn1a. or
Star nes o f Alabama remarked-"He' a e ecause-as J 1 t ,v1tnesses, arper d th
• . oe lesscorope en ld th committee he repr esente e
h ?" I s against Hitler isn't example.Knowles Cto .t:ee of the California American
e t w~ all very side-splitting in Washington but• there RadicalResearch omm1 . . .
was nothing laughable about it out-country, where the Le . n The day after his appearance the Cahforn1a Legr~n
solemn newspaper accounts ,vere appearing. co!:a~der said he did nothing of the kind. But the c?n11rut-
It was making a distinct contribution to the causes of 1ee continued to permit him and his lal-vyer, Ray E. Nimo, to
re~cti~n and race prejudice. The exhibition reached its high readcarefully prepared question-and-answer dialogue from
point m the testimony of J. B. Matthe,vs, rusgruntled former neatblue-bound transcripts without trying to find out who
Communist fellow traveler, first chairman of the League theywere or 1vhom they represented. It ,vas a sort of Galla-
against War and Fascism, no,v the League for Peace and gher-and-Sheanact in ,vhich Shean chorused that all liberal
Democracy. Matthe,vs described from personal experience Californiapoliticians ,vere indeed Communists. The team
how small, cohesive Communist fractions try, sometimes of Knowlesand N imo was, it developed, booked and financed
successfully, to steer united-front organizations do,vn the mid· bythe Associated Farmers.
dle of the Stalinist line, using innocent liberals to further \\Then Kno,vles returned to California after his Washing-
their own political aims. Matthews knew what he was talking to_ntriumph, he found investigators for the La Follette Civil
about and had something to say, but in his eagerness to Liberties Committee ,vaiting for him. Instead of trying to
avenge himseU on his former associates he overshot the mark. roUthem in the aisles, as he had the members of the Dies
It was he who dragged in Shirley Temple by the curls. He ~mmittee, he put on smoked glasses, grew whiskers and
also let himself in for an accusation of perjury by intimating hid out. He turned out to be one of the associates of the
 115
N j\CTlVITIES
l"HE PR.Essu vr-i·J\r,1.E R1cJ\ general objectives as
notorious Colonel Ii
of property's well-or en~y R.. Sanborn co
RE Bovs
which had t11eh s::;;
were by no means as
.f ganized .. . • nun . C
o11fe
reoce, -ers althoug
C a l1 ornia. An d nationals" . atlding "' ~I d~-.
J\>Sociate . ed 90 per cent o f
. a venturer f or vigil o•icc
b orn is typical f h • ormer preach ante un· .t t1te always rece1v
. o t e stron er and itsio ·cious, . d Farmers has cent from farmers.
rehes for protection when g:ann men Upon ,vh:Oldier, Sao vi c1ate 1 1o per
,rbe)\s: tn business and on yd" t farmers as Philip Ban-
after the San Fran . it becomes hyste . in property
itscuodsIe:ders are such phony d ;epublican candidate for
Alaska to save soul cibsco general strike. He ncal, as it did
b ' . s, ut rema. d once w Jtsffro:iJlionaire lan_do,v~er_an the 1938 election. When h_e
orn s vigilantes have b m _e to exploit Indi ent tQ cro1, Cahforn1a 1n k He 1s
California property o:::r:oothing the jumpy nerv:s~ Sa~. tiiesenate fro~ it is to have his picture ta en."
iakespitchforkin han: f the Associated Farmers. So is C. C.
gratory lettuce pickers and by syste°:1atically beatin f b1?
several years. 0th er agr1cultural w k g m,. amemberof the Boar oS ·ty First National Bank of Los
or ers for . ector of the ecur1
Teague,d1r
Knowles' mission in Washi h had the title of chief investigator
way th c ngton was to ;\ngeles. .
e ommunist-menace put over in a big EdwardF. s_ull1van,d,v~ harged that the movie colony
excuse for vio-ilante I I propaganda which is alwaysthe forthe committee an ,v o c ome
c,• . aw essness. He sue d h vi.th Communism-after he had spent s
ated Farmers is extendi . . cee ed. The Associ. wasshot thr oug ' h c t never
· . ng its orgaruzat" Ea
instigating conflict bet £ ion st, everywhere ofthecommittee's money for a nice time on t e oas -
ween armers and k . producedany ,vitnesses to prove that the pretty faces_ of the
f oment pitched battl b wor ·ers, trying to
es etween agr · .
employees who pr fa arians and industrial screenmask Bolshevik minds. He turned up some witnesses
ocess rm comm 0 d" . s· .
ostensible conflict of . . iues. 1nce there 1s an fromhis home to,vn of Boston, though. Sullivan was well
. . economic interest betw·een these two equippedfor his investigating job. He had been a labor ~PY
grthoups, it is often relatively simple to turn them against each
workingfor the malodorous Rail,vay Audit and Inspection
o er and thus to red uce th e thr eat of proletarian solidarity
Company,Inc., of Pittsburgh, Pa., had a modest police record
f or a common front.
involvingirregular automobile financing and operation and
Pew • of Sun 0·1 1 , h as emp 1oyed his . Farm Journal, one of
had made his living as a professional baiter of Jev;s and
the. oldest agricultural newspapers m . the country, as a me-
?atholics.He once ,vas associated ,vith James True, a Wasb-
dium of pu hrtcity · for the Associated Farmers. Stanley F.
mgton character ,vho circulates anti-Semitic propaganda of
Morse, formerly of the Liberty League and no,v one of the the most ridiculous sort in pamphlets called Industrial Con-
s~kesmen for the Associated Farmers, has received dona•
trol Reports. True once achieved notoriety by patenting
nons of $1,000 from Alfred P . Sloan of General Motors,
a Weaponwhich he called a "kike-killer ." He boasts that he
$~,ooo from Lammot du Pont , $ 1,500 from G. E. Baldwin of
aud his friends are preparing to drive all the Jev>'s into the
Libby, McNeil & Libby, $1,000 from E. C. Corbishley of
:a. Dies kept Sullivan on the payroll even after he knew
S,vift & Company and $1,000 from Pacific Gas &: Electric
es: facts. Yet Dies loudly announced that he was America's
Corporation. These donations were made while Morse was 1eading opponent of anti-Semitism.
promoting the Farmers Independence Council and the Corn

•
116
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118
T 111t i•ntss Ukit II
All the testimo ovs
ve li I ny was du ly re
ry . LLc of what D'1cs called . cord,•d . i11ti
1c frc
ere d It Lhc "documcnU:d 1
. aw ll~pcrin.,.,.. c 1111·11 I
COU • LC8ttn1011 f n ••IIJiJ1;ifJ< lilt
nLry was impressed J, y o tlicic wlt11 Ii to111.
world l · ,vcn such , (•,,r,,, .
as fcrbert Bayard Sw a11 tu bane , ,. . I 11,
York., and according LO J) ' ope confcncd with ,;t11. of ih,
for Peace and Americani::• offc_rcdto fi11ancc: Jr1Ntw
nounccd he would
ti~;
. , wluclt Ll1c <:hid,... l,<•ij,iu,
organ 1ze to f ..1.111l1at1
committee. Swope went so far o~LCrLhc:high id<-'al,fj/ a,,:
Wh. f as to touch · 11,
ttncy or a contribut ion. ricl1 young/rJ<f
The. committee'
. • most serious . dirt w
exam1nauon of witna«:s from Mi b. y ork. wa..done it1ii.
star of the Michigan ca~t w : •~an and Minnt4'Jta.'III(
publican hack from Flint Has J u.figc Paul V. (A,dola,a k.e,
· e test1 cd that G
had encouraged sit _._ ·n t 'k ovcrn,,rMurp!,y
when '-- £ ·,._.,
...,..,w J n es and W"'• re · • 1.
- miff in 111dut•
uc:: al<e;U to clear the
v.adola'scom • pant, with gunfire. (Jne ,,1,
J •
....-...- • p--anwnscaJJed Murphy'• conduct "trt:aa<nmb'-"
•.a.uc ttaonony was ,. n.ra
· 1Y timed
• to ooMurpl1y, thi:JJfff'Y<"•A "''
m a <:.m1n::ti<1n fm- J • ,.,.,,.,.
lf:nk r-a-· re-e ea,oo, the mtJSt harrn. Sirnibrly,
• Gcban, rorrntt P..epuf,Jican may,"' ,JI St Paul and an
aau-e~· ...__aanpatgn
Jn u,c: . w defl!:U C,r.wt:rnor J~vJll
w.. ,,. ,,. . ,
• 21 ~m m:_b~nk tubp-~ by IJia and afJr,wtd ti>t.,rir~
RX ~ ~ tn Ww,ington at gr..wtmrllfflt ~perne
tr., ~-..rre •he <f~rary dlaLtl.e P.arna-uJ_...JT party w~ ,in;tA
w ·:: r/.>mm.mism.,
I ''- ; YJt a!.'M of lliet:, few ~Yf ~) ~ f,e ,..a, ap
m 1►-irra a-.d ~A- tf.ae flJ'o/~• from ftir11,"(A'ftan v.M
'-o/~W .,~ t.r.&<.inlyfix..We VJtsWJ,a-ve-rf.lCt:r11J1Y/)J ~
u11es tVJ ~,., <..ff wid-1tr.# tWff frK u,,o r# tfnu daff t,ot be
~~ fa,t ~:tr ~.Ke W~¥~"'
'J'l;.e .,.«df;' ~ (A it t:..#1'/AK.bi :d "exmbiU," Wd JU,,
 121
N 1>CTJVJTJ£S
120
THE tJ N •f>M Elli GI>
House, alth ough weU k PRESSURE Bovs . and widely circulated, even in the
put on, was . nowin 1
$100 ooo afraid not to g the kind of N C-, is free y
• appropriatio perpetuate . perfollna ~ale, States
oited . . t h e H ouse
capitol, have appeared regularly 1n
con_vened. Only thi n when the S it by Votin neeit f tbe sheet •es-During the Senate 1nvesugat1on
. . . o[
IJ5,acksO
agamst the resoluti rty-five members :;enty-sixth ta ne-.,. andsenate ress gath 11er1French government, Liberation d e-
campaign and on. That ,vtutak d the nerv ongr~ P to e
probabl . e n· e to airplane. eachJllent of president Roosevelt and .1nstal 1auon
sales .
ever success the . y ,v1U contrib ies up to th Vote 01aod~d unp II ivfalin eraig-,vho opposed the sales-as head
\\"ill give th an~-Ne,v Deal tick Ute ~ateriaJly e •940 government for the Urute
h e Amencan F et en10 to wh f ctuef of 5·JitafY
ta . d States. E very
p one for its pro ascist lobby an ys. Meanwhilea'.. 0
had such paganda. No lobb . ever-read • II of
. a new IIll
·oduces some such horror.
a pretty setup. )', right or left• has
y mega.
e\'er issue P1
Resunung hearings in the surnxner of 1939, Dies • was move.d
investigate the anti-Setnitic organizations he had previ-
ouslyhelped spa,vn. With ivfatthe,vs installed as "research
10
4 director" and Rbea W. Whitley, a [onner G-man ,vho co-
operated with the labor spying Metal Trades Association
It is probable that th .
~e gt'O\\•th of more e Dtes Comn1ittee heari . while in J.Edgar Hoover's service, as counsel, the cox:runittee
ttons. The Bund , some thantima score of nnti n~ stimulated
' ve FasCist O • held henrings on the coterie surrounding Major General
'"ere roncl\lded e nfter the O . . rganun- GeorgeVan Horn l\'Joseley, United States Army, retired. The
S ua ' ""'s bold enon h r1g1nnlDies henri
q 'Te Garoen attend--> b g to stnge n tall)• in "fndi~ witnessesincluded Dudley Pierrepont Gilbert, a rich young
,., N n11• storn, troopers'"'' . }' some . 17,000 persons and" pol'-J son Ne,vYorker "'ho ,vns building a hide-out in Kentucky
btht' H 1 n \ln1form D ''""'
• rm d Tribtlllt".,,,as . · Ot'Ot hy Tho1npso1\, of ngninstthe (01·thcoming Je,vish revolution. George E. Death·
1 N~Tt. con,n,n1,der of nn otgnni7.l\tion cnl\ed the Knights of
ctar1n~ to lan~h at th" n ' e~pe-lled frorn the n1eeti1,.,. fQr
et('(\ th e \ls11-,l}e,.,.baitin ' onsense • of ti,e spcnkers, ,vho "'dt-\h, e \\lhite Cnmellin, and Jnmes Er,vin Campbell, on f\xro)'
th
In~ Frit1 K.\lh;, h..~ i ttmde-$. Short!)• ht'fore thi~ inttt R~~er\'eofiicer ,~ho peddled to n selected list of friends the
C".h • "n nttendro •, • , · f.ltt)' tnles he ,-eeei, •ed h-01n Gilbert. These tnles "'ere sup-
. 4\1rn,nnl\(1\1:tlr\ \) • n prn ntt' d1nnt'r nt whkh
l)l t"~ ottt<·tt<'d
•• • both HNI Con,n \\';\$ t ht• pl'i ,\ <'IP,'1
• I spt'<1ker.·\s u~1ml, l"\\l"II to hn,,e con,e n,·igh,t\\\\' fron, "Geo,-v,e Ri~.-- nn np-
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""''" ......tl Tfll'~ tJf hi• mcJ1,rn:umtii:: prop,4 ~nd ,.nrich <Jf hi•
124
former bl TliE PR.Essu
uster Th RE .11
1on~er grace hi.s e loaded rev OYs
unlike th desk top• h. olver and th
A . at of the b ' is voice . e kik
dm1nistrator u- ellowing T is lo,v•pitch e-kiUer
co f nugh JO h rue wh O 0 ed and llo
n erence. (J nson t nce "d quie
still cheri h ohnson did so . o. thro,v him ared" Nil.'. • CHAPTER 8
.. s es.) ' mc1dentall out of a "
The rumbt· y, an epi d Ptes1
U . 1ngs are I so e T
n1ted States .. T a ready bein ru, Finks, Spies and Girdler
Je,vi.s11-ComU:u . rue says. "They hag heard througho
b . n1st men h ve gone t lit the the Wagner Labor Relations Act in the summer
e Joined with ace as spread t oo far and th pJ,SS,\GEO..fas one of those things ,vh1ch
• • •
there be blood:t bloodshed. And anoo far for the issue/ history ·will never
of J935
quite be\,able to explain. Orgaruze_d
• ·
labor, g,.ve_na taste of
have ,viped the led? A~erica will ne::;aby, ,vhy shouldn~
I' ast vestige f R e safe until rotectionby section 7a of the Nauonal Industrial Recovery
ve ,vaited too lo f o ed Je,vry fr w, ~ct, wanted permanent guarantees against intimidation and
less!" ng or that ... to be sati s6edom_ our shores.
with anyth· ing coercion.It sa,v the vision of collective bargaining on an
unprecedented scale. Employers kne,v they didn't want
it but ,vere caught off guard. James Emery, goateed repre-
sentativeof the National Association of Manufacturers , made
a valiant but futile effort to amend the legislation. As he so
oftendoes, Emery overshot the mark, asking for such patently
destructive amendments that he couldn't get anything. The
last-minuteWashington pilgrimage of manufacturers he ar·
rangedcame too late.
't.fostmembers of Congress had no very clear conception of
the proposed la,v and ·what it ,vould do. The spokesmen for
business
. in the House and Senate ,vere not ,veil prepared for
the battle. Most of them had presumed that President Roose-
velt "'Ould do the job of killing or mutilating the legislation
for them. He had sho,vn deftnite indications of skittishness
about the '\Vagner bill. There ,\laS good reason to believe that
bolh he and Secretary of Labor Frances Perkins , ,fhile
friendly to organized labor in an academic ,ra y, were fearful
of the reality of po,verful labor organizations.
Among those engaged in the long preliminary fighting
1t5
 THE
for PREssuR
mer bluster. The l E Boys
longer grace his desk oaded revolver an
unlike that of th top; his voice . d the kik
Administrator He bellowing True ~~o,v-pitched ::lier llo
conference U hnugh Johnson to th o once "dared"quie~ cBAP'fER S
·1 • o son did . row him NRA
st1 1 cherishes.) so, incidentall out of a 1
"Th Y, an e • Pres
e rumbli p1sode1'
• ngs are alr d rue . k Spies and Girdler
U n1ted
.
States " T
' rue says "Th
ea Y being h
eard thro
fin s,
ughout the 1,abor Relations Act in the summer
Jbewish-Communist
· .
.
menace ha
ey have gone
too fa
e Jomed ,vithout bloodsh s spread too far for thr ~nd the p,\55/\C'Eof the Wagner b. s ,vhich history will never
one of those t ing f
there be bloodshed? ~d. And anf'vay, wh e issueto of 1935was 1 ·n. Organized labor, given a taste o
have wiped th l America will never b y shouldn't quite be able to ~xp ai f the National Industrial Recovery
e ast vesti e safe •
I've ,vaited too Ion f ge of Red Je,vry from until we tion by sect1on 7a o . .d . d
protec d anent guarantees against intun1 at1on an
less I" g or that ... to be satisfi d . our shores. Act wante perm . . an
e ,v1th anything ' . It sa,v the vision of collective barga1n1ng on
coeroon. didn' nt
unprecedented scale. Employers knew they t ,va
it but were caught off guard. James Emery, goateed repre-
sentativeof the National Association of Manufacturers, made
a valiant but futile effort to amend the legislation. As he so
oftendoes, Emery overshot the mark, asking for such patently
destructiveamendments that he couldn't get anything. The
last-minuteWashington pilgrimage of manufacturers he ar-
rangedcame too late.
Most members of Congress bad no very clear conception of
the proposed law and what it would do. The spokesmen for
businessin the House and Senate were not ,vell prepared for
the battle. Most of them had presumed that President Roose-
velt would do the job of killing or mutilating the legislation
for them. He had shoi.vn definite indications of skittishness
~bout the Wagner bill. There was good reason to believe that
f ~th he and Secretary of Labor Frances Perkins, ,vhile
nendly to organi1.ed labor in an academic ,vay, ,\\'ere fearful
o[ the reality of po,verful labor organizations.
An,ong those engaged in the long preliminRry fighting
••&
 127
L£ll
ctllD er
TU.I!: PRESS UR,, rt"£S ,..r.io . the wagn
"' novs flr,11tS, s ans of corn~attin~bv iously was
over the coJiecLive-barrra· .
f o' in1ng la S "'er me bn1que ow-
o New York, its author was th w, cnator llobert F deV1
·sed ot•• ....,heir
• n J.
tee .
1zat1
·on was gr
ivhat he wanted and ex~cti e only one Who kne~Wasn er . dt1stfialis~ orgaoizatlO ·But tabor organ .Act and des-
complish. I-le had written t{e ~~~~~ the legislation i:o~;~clly
• 10 d 11111011 ulous. the Wagner d its
,., 1 an d unscruP egis of
.A F o
E L double
f
John L. Lewis and Olher r h1 in close collaborati ac.
man of the old NRA Labcn tBgtened labor leaders. ~n hlvi~h
,.
o11la'~
[ 1an
u ine1
the a
ly under . cJjcated. 'fbe . h ·
Coxnrnittee or
or oard he h d I c air. ing:~:as:rcs werefi~t two years and 1t c:rnpaigns to win
b
pro lem ,vas and how to approach it ;h earned Whatthe re;bership in t~1z:tion, after successf£usteel l1ad 4,000,000
down with the rest of the NRA h . e old board went 1
·aJorgan 1 d part o ' revent
,v
k l·11cd off the Blue Eagle. That ave Waen the S
~1prcmeCoun
0
Jodusrr1 utornobiles an. h d to be done to p . .
te~tilcsand a n Sornetbing a gth to get an in
after a labor law that would gt d g~er his chance to go ernbcrso[ its o;" . their collective str_en
s an on its 01vn 111· 1n
using · t 11
monLhs of pleading with the p .d P s. After ,,orkers[rom f the products of their o_ . d for Tough Torn
h res1 cnt and connivin .
t e Congressional leaders, he finally got his bill b f g wnh d share o b it rema1ne d
Senate and pushed it through. e ore the ac~: iousdodges were thusedReuptu blic Steel Corporatioln an
· o[ e tee com-
T_oo la te ~usiness awoke to ,vhat had happened. The Law- Girdlcr,chairman f the independent s
~elf-appo inted strong roan"~ttle steel"-Bethlehem, Youngs-
yers C~mm1ttee of the Liberty League -c onstituting it.<Jelfan
paniesgrouped together as ibl. nd Inland -to block or-
uno!fic1al Supreme Court-tried to save the open shop by de-
town Sheet •· cc
T u be , Repu ic aI h. of Girdler, in . d
ustry
claring the Wagner Act unconstitutional and advising em- . labor. u nder the genera s P A t and wrote one o f
ganiied
1
ployers to ignore it. But the Supreme Court, in this case,did
madeits last stand against the _Wagner ;.too- leasant indus-
not see fit to follow the Liberty League. Instead, it upheld
Lhcmostdisgrace[ul ch_apters in the non ceed:d in breaking
the National Labor Relations Board, the body set up to en- trial history of the United States. 1-ie sue
force the Act, in all of the early test cases. Employers who the little-steel strike but h!S . victory
. may prove to be on 1Y
followed the Liberty League lawyers-John W. Davis, one• temporaryand scarcely ,vorth t h e cost ·1n dollars and cents . -
time Democratic nominee for Pr esident, and all the rest of t(J say nothing of the tremendous · pa1·d 1n
price · 1· n tanmbles
o- •
the glittering ornaments of the bar associated with him- had Girdler placed himself at the head of forces £lying the ban-
occasion to repent at their leisure. But for the President's ner of. law and order in the spring of 1937, after John L.
proposals to reform the Supreme Court, they probably would Lewi~had negotiated a labor contract with the United States
have been all right. Chief Justi ce Charles Evans IIughes and Stccl Corporation in secret conferences with Myron Taylor,
Company would undoubtedly have slapped down the Wagner then chief executive 0£ "big steel." The names Girdler called
Act had they not found it necessary, in staving off the co~rt ·raylor after his "surrender" were not pretty. For himself,
reorganization plan, to prove that they were essentially lib- Cirrllcr had said, he would rathc-r go w his farm and grow
eral. The early Wagner Act decisions provided an important apples than sit down at a conference table with labor leaders.
part of this proof. Cirdlcr served notice that he would continue to support
'\Vith the Supreme Court, an old ally, turned against thern, R.c:public'1company union, known, like 110 many suc.h
 111()
l 118
, I\ Np l• fll ll I 1r,II
'rt l IS 1
lll I ions set l• ll l~llll u ll IS ,, 1rJl(.:l, •Hl''' ~ ' II I •It jk_cl~ (11 I,1111
,\p , "P <.h11 ·i11 . uoys I M.a~~•01 o ·
t>{,\I ,Ince of 8 Ihe N H,1\ wtiitc\\ll\Sh 11c . , . I (.' ird\c1 wlin l,r
s, • <.'ollc<.'t• da)•s Irr 10 •ti111011yo '
cnt,H101 11>1-u1 l ivc barg 1i11' lo Rive ll u,11111~ wh''\~1ic1hr•in ,1trl'I'' tr~ -n~rr111io\\ ,11 itR rarr valu 11 ,e
i11dustr>• ll: . le rallied ,ve.'1'·,'.ng,,is lht> E111p11c il~1
·c1in1 1,,,1'"" 111' ·111cssl'or th <' P · .• il'1ki11!( 11p t1H'
· '- \YO\ t I ' 11.• ,cart • I
\ ct to U\ttl-...c , <.. llot sit idly l> tt ussol'i11tes
..-
uyl', c
ii1i Rev,t- ,,11111
s••"
' . 11t1· w1
I vi1n•s 111f.1
. , Wllill' they \\lltl i •
tt,
• •
I\ ' \ l1'1s tC'I lt \\l:IS ,111 ,1ll
'"Ould S'OO<.i its pron.. y nnd pe1·n1· •hc,ttt\ ~ llC' \11 , • , a \\l < I( ' ' • •
tlot reco . Ilse us l'1b ' it the '"
1 l h1S st.1)1,l: o • I the 1tc1i111>lira1
,11lo< ( ' iiclll'f 1-\o 1 cl<'l'llOII
Steel 'l tld T' gn1tc the t\ 1u·1l • o1· s l\hig11·1 C "Sn,, \111ls,• I I ·11 19•\11
111 ' l'tt'dwhnl ('\l( ('( I •
,~11'
• r hi s ,1:iyin tl1t• spot 1·Ill,,,'
I
• • 1u \ \'ork , • g.1n1atrd I\ . . ' ,n1•1; 1, 11
111,11~1.1 . . u1clt' t hl' Inos I o • • hl
it ,,·e11t over t 1 crs, n11in,potent A F ssoc1ntio11o[ I t 1'ict111ks, (:1r(\\t'1 n . Jf thl' big 1)11si\\cssoracle, the, .1g
L . . o t ie C I O . •. of L ntrr ro11,
e,v1ss drive for ste l G:. nnd becn111e th b i 1ntc iu11i1 11t·i1•,1s i1k:1I in th(.' paf1'. l -the -ranks j\.1ncric:Hl, l {c ,vas a
:ously•111 ig1,..1nt 1111
t1· • t on1 h ,. cl the conscrvat .ivc pr es·s.
strik.e to force •·r e . trdler ,vns l't!'\d ' I e eneficinry ol •
\Yith th ittle steel" into r . }"' ten lhe incl'itabl c . r·
, ..ustys:11111. is
l tcsun1ony s oc"c
d. maliC heights as he to CJ
l .,
Bri-4-.. e co11nivanceof a R.e1nebl~1•ns called by Lewis.t • I aster rose LO ta
1·hc 0 1110su:c n 1• . t ·a ·cd oE his 0'\\10 paternalistic
tl ·
"'6"'~ of le\\· H--mn.-1,:
" i:--ure the G ·
pu icnn Senator H S I
• · ty!l
. story or P10
Ins . pcrty. rig 11ts .ou 1 < gk , of R epublic's sacrifices
1e1_rch:u1ce to strike back. a: the C irdl~r cro\\•d finallygut interestin the ,velfare of lus wor ers, . H l d
dunng this n;o-riod k . .1.0. in the open. Br·~- co keep its pay1·olls intact during the depression. e l-~
r- ept 1n touch 'th •"6" never in his life, he assured the committee, interfer ed Wl
agents. '\\'ho once arranged. a s -~~'l Girdler's publidtl'
Senator in Chicago Af d peaking enga,,aement for the the prh•ate lives of his employees.
campaign of . . • rea y they '\\fere ll'llging a desper.nt In ju.xtaposition to this picture, he hung one of cru~lty,
handed to th resis:zice under cover. Their opportunity 11':IS gangsterism and depravity. It ",as his picture of the machi.n~-
Ohio. who em. y overzealous CJ.O. leaders at ~Iassillon, tionsof Communistic C.I.0. leaders. To the charges of Philip
- took it upon th emselves to censor the mail delir• 11UITay, Lewi.s's right-hand man, that Republic '\Vas punish-
~es at a struck Republic plant. Suspicions that Girdler was ing workers ,11hodared to join a union, that it was coercing
~ the mails ro get food to stay-in "loyal" workers, they them and shado,ITi.ng their organizers, he entered a spirited
tcd ttucb. searched them and in at least one case resortrd denial. Phil Murray '"as a liar, he shouted, and al,.,ays had
to ~iolence. lntetfcience with the mails is a Federal criJJle. been. That was a pronunciamento, not merely a charge. It
Only loc:allaws were violated by sit-down strikes and if local branded Murray.
officials were unable or unwilling to enforce them, it was The case for law and order had been made so far as the
c:bcir mm respowibility- Xot so the crime of inrerlerence pressand related agencies were concerned. The middle class
with mail delu-m.es. Here was a case where Federal aotbori- ~ th oroughly frightened, much more frightened than Gird-
tio rould be put on the spot unleu they acted prOlllptly and .er and bu crew. Republic officials knew what was going on
tn the back. streets of Canton, Massillon and Youngstown;
empmtiolly. ~ knew what was going on at union meetings and after
.A revAutioo to urvettigate W3S duly adopWiand the Post
OfficeCommiUtt of the Senate, with SenaWr Kenneth ~fc- em; they knew of the terror they were spreading with the
1',d]ar c,f Jeno::•1ce a.. chai111,an. •ent to W'otk- MetJJ= 1llpPott of police and National Guard forces. The public got
•ere ,ornewbat bduddkd- They c.oold not make op
 THE PRESSURE
none of that L Boys
fro th . aw and order w
m e newspapers G. d1 as breaking d
. ir er stood for law andO\vn,judgin
g
Order.
2
..

NO G 11tOL:Ell
p1£S /> G'b
THE PREssu
RE BOYS c1N£S , s d s Russell l .
& •er uarne . k
suggested cunning of a Io,v ord . . g uun fanCl tl t he was a crac .
kn ew that the me er, said he th enq3g1n o mittee 1a . f
. n ,vere free to . . ought . of an ~ d to the corn . d to uet rid o
Girdler hirelings had th . . JOm unions. But llla.ybehe 10:11ori x Jaine . f uns- He trie o .
a . . e1r spies and th . all of th booeY.fie ,:i~l a collecuon; lat the p0lice ,vere golllg to
nyway, JUSt in case th eir strong est
. e stateme t f ·ann 1))af1-,501all be was tipped o ded before he could move
public consumption and th n o policy \vas squads thelll when but the 1a,v descen d in Girdler's famous
jurisdictions union £re ey were expected to killeantfor
. e. eep th . raid hisbollletheseguns that appeha~ebG1'rdler had horrified
T h1s obviously was the . e1r It was . . th w ic
course, that he knew noth_s1tuation. Girdler contended ~:=~aphs, T~o::::e :.ned out to be a box of harm·
attacks on union organize;:g J:-;:sth~ spies or the back.:u:f the postoffice
convincing when h . disavowals sounded y -oke bombs. veru·r machete taken from
. e appeared before th more tesss,.. · was a sou
Alsoin the collecuon th olice did was pounce upon
m1ttee on J une 24, 1937, than when h e Post OfficeCom. ter What e P · lf
lette on August 1 1, 1938. e was before La Fol. a newspaper repor . I d d with workers that showed itse
everysecond-band car oa ye town and on the streets of
In his initial appearance he m d I
of the weapons taken from C.~.~-m_ucl of the photographs on the roads leading to _oudnegeds strikers Gibboney was a
Youngstown. Some were .in . At· the time he was
sc:cnded upon Youngstown tl1 . invaders who had de-
. e previous week D . strikerand bad been a picket captain. avin s
G irdler testified that "thousand f . . ramaucally, taken in he had a secret cache oE $50-tbe st~rt ~£ s g
,vaoLllempteddLO enter the city ar~;d ~;~I~ ~~~=:.e;~;;::~:d 1:~
' 1·':
ror a newgun- ,vhich he was ho ....,ng ou
"·
t on his wife
d " descr1be
.· d b
Y
vcra nn even dyn·,1m1te · to attack our employees",, "l • ·11 The great roundup of C.I .0. 1nva ers
hand you " It •I . " . . w1 Girdler(ollo,vcd incidents of violence in Youngsto,vn and
' e BaIC at ouc point, pictures duly atLcstcdby
III(' ( :11
1 Cf of . po J'•cc
· o f Yo11ngatownshotving the weapon! of the other Republic cities. In Youngstown there had been
t ~ ••r, O • r01ces
. 1)Y l11c p11hltc
\v,11 1ak,•1111 ·01111hea.,,.., , n111ho1H1cs,"
.. 1hcMarketStreet and Stop 5 riots. In both cases, des~ite the
th
Lri fi'ullt•11 <'clIHc•lo.~edthat 10/f. ivt·rc n rrL·HIcd t,y the polke wc•ll-rchcarscdand sometimes airtight alibis oCthe police, e
ill lhtl 1011111l11p or ViNilOrH 10 YOIIIIAHIOWII, uuly for1y-1woor Republictechnique or incitement ,vas obvious to one who
1vhon1 ,vcn·r 111 •111nllyfrc1111 0111.sldctht' <"lty. ()11c h1uulrrll followed 1hc 1,a Follette hearings, ·where partisans on both
1hl11y nl11r \V1•1r1e1lra~<•tlfor lnrk of nuy kind of cvldt•tH't• aideRwere Hued 11p and pc, milted to tel\ their connic 1.ing
t1M11l11x1 1111•111 llary w1•1c., 1101 rr11ryln1-11vc'npon~. 'l 'hr Hhc•alll' Kiorlc~ - to en~11ge 111nn~ry <lchntc ,vith each other. The proc•
ill tri1rcl ~lic1y-1hn1r, of 1vhon 1 1hh ry Hrvon ,vrrr fro1110111or t•~i wn~one1ln which the trnth 11Asnyed high.
tow u 111111 t tv1•111yllvr haul 10 ht• 1·t1lr11~rcl, 'J'huN 1hn l11vndl111(
111111y cl\vl11cllt•cl 11111 101p1111il'x 1111urcl, Whnt 1111, pnllrr clld s
WIii! 11111111 1 Ill' rvr1yo11r 11111fOlll(IIHly\YHll!t'cl 101111d1•clup,
S11111e· 1111fiox1• 11111'-lrd 1vr1r l 11•111r11 hy 1hi•pnlln•, 'J'hry 1111' 1~ A, Mn\'lt.(ltS1rt-e1,on 1hr rnlny ul1-1htor J,111<' !), \!)!171
11h>kc,1Rln11hll11tl 111(1\\\\11!\ n,('lht'y ht\ll hnllt 11111lt•1 · IHI 1•lt•·
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provocateur Po . -go. nee Rt•p11bl' shadowy c of Richn1ond's ,ncn let go with a gas bo1nb. fhat
• sing ns . 1c spy d I 011a deadly hubbub that lasted all night. Pi ckets block.•
amrtcd
of the Rep11bl' a union member, alt! ~n agc111
given h. b IC company nt the time d 1ough in the p.,y 5111
ndcdthe su·ccts leading to Stop 5. Ri chmond called r ein-
. im y Butler, Var o an armed ,vi!h a u11
"hen the truck b I ed
H fl O r
g nffectcd extrerne . d'
through th in •gnauon
~ forcementsand police and deputy sheriffs patrolled the dis-
e ourished his gun d e complacent picket Lin trict-grubby homes of steel workers for blocks around-in
" 'hen he ,~-asarrested :u::ggested violent retaliation. Late;: what was supposed to have been an attempt to restore order.
A restaurantwhere the women and their children took refuge
others "'_ere beaten up and h:~~p of fello,v unionists, nine
corporauon counsel V • he was questioned by the becamea target for police tear gas and for spattering lead.
.und er arcumstances
. - indica
erne Thomas
. -an d promptly released .Beforethe La Follette Committee, Richmond stoutly de-
tdentity as a com tmg th at he had established his nied that any of his men used bullets. So did Sheriff Ralph
riot, the Youngst pany s~y. As a result of the Market Street Elser,who avoided the fracas himself but who bad armed
· officers hastilo,vn police . '
oal . force was augmented by 144spe· deput1es in armoreu..,.true k s on the scene. They had nice . ne,11
•
,vere nonstrikin Y recruited an d untramed. . Many of them lead-shoo ti. ng guns. And behind the ,valls of the plant sat
public, and y
. man po,ver
!
employees of the little-steel companies, Re•
0 ngstown Sheet
Buterw1thh
I. '1s men, d.oing nothing-he
. . But witnesses
said. .
with and . an d Tube. Thus reinforced testidlied that th ey saw the flashes of rifle fire from the plant
w·
police waited for th ~ th some $ 1 3,000 worth of tear gas, the ,1n ows or th e ra1·1roa d tracks 1mmed1ately
. . . front of the
10
on June . e1r next ch ance. 1t came ten days 1ater, ,,,,ant which commanded the street and the ,vhole riot scene.
P
19 ••loreover' b alli sue
d . experts found holes which they readily
Peace had been restored af themonstrat
di ed were made by high-powered
. .
rifles fired from
at least in Youngsto B ter the Market Street incident,
foreboding Rum ,vnh. ut th ere was an atmosphere of tense
· ors t at ru bb er workers from Akron were
td rection of the plant. Obviously-the tenacious denials
0 emonstrated liars notwithstanding-company police, per-
 r,IP GJitPLER
T}{p; PRE
tl'li;.s, serES " the National Guard
~~ps with the help of ssuai;: llovs
f der-to send the big battle
Joined them dur· Pennsylvania . and or day before h. h
d peace 20, the th strike -w IC
with human tar~:t t~bni~ht, had the !:l:~ad Police ivh s an n JUlle break e h.
doCtO ' gstoWPo off and ak even by is
fully planned attem~t . v~ously, too, the aff ~arget Practio . tOyoun co collle ' ble to bre .
strikers and cir" in t e Girdler ma air ,vas a ,...~ ,11 scJ1eduled ·1 then been a . diate objecuve was
1ve the c 1 0 nner to -•re. ,ias d not unu G. ·dler's unme
Meanwhile, a crusty .. Ii ~ut of Youngsto~rroriie the Girdlerha
edattackson
workers- 11
I ".r on roe, Mich·
Thomas, former Youn po t1cal adventurer n. stng d 1 vbere . n 1v.1
verne, was organizin gsto,vn b
p
rosecutor and b
amed ,..
"ay accotllP\isbe ~asabout the same e se~ ns director for Repub·
of Youngstown Sheet !n~ ;ck-to-v-1ork movement ::tl~er of 'fhc story' ' b.c industrial relat10
James'for , ' . of vigilantes.
p rt of tl1e mob
a
ler, Sheet and Tube ffi . ube. More squeamish th e~all :rt~ns;igatedthe organi~t~~~zer into unconscious~ess. An~
. o 1c1als had ·d an Gtrd.
machine guns buried under a cok o1_ ered a stock of eight colored c.1.0. o g blic plant and dispersed
beata I1 d on the Repu
the hands of guards
' ·
Th
omas's plai
e pile to keep them
out of othergt ·oup tnarc e f pickets ,v1.t h tear gas . b
th
the committee, was to arm sev ~ proudly admitted before relative ly sn1allgroup do attacked children and
C •I ·O · mem·
y·
employees and send ti h er
1em t rough th
undred Sheet and Tube
•k . At Can °•
[
t n Guar smen
. .
rching into t e
h city arrested
•
21 "if they had to go in shoot" ., e pie et hnes on June st,llldcrsa ter ma . d reo ened the plant. At Warren,
assured "my men" that the h1~g. ~ a la,vyer, Thomas had bcrswithoutprovocation an p b hurling nuts and bolts
stay-in workersamused themselves y f C erce organized
go t in their w ay. y a a nght to shoot anyone who
at unarmedpickets. The Chamber o omm d .
At an office headquarters he had established Thomas's vigilantes. At Massillon, a cro,vd of young people, ancing
men got to ge th er t h e1r
· own guns and whatever ,veapons
' they and feastingat union headquarters after an outdoor mass
meeting,were trapped and mo,ved do,vn b Y v1gi · ·1antes. Here .
could borrow. Attached to headquarters ,vere a group of
play~l y~ung thugs, among them Anthony Pecchio. Tony's the chiefof police had gone out of to,vn for a day and given
contnbut1on to the arsenal was some "fire,vorks" which he the vigilantes, augmented by imported company thugs, a
and "some other boys" got at Hudson, Ohio. Tony was the freehand.
sort of lad who has a police record and doesn't like to be In Chicago on Memorial Day, strikers and strike sympa•
photographed. He and the other boys shot off their fireworks thizers,with their women and children, marched across a
-mere firecrackers "about strong enough to blow off a perch" vacantfield to the side of the Republic plant where they pro-
-down by the plant just for the fun of it. Then there were posedto establish a picket line, only to be met by a force of
478 steel helmets provided at a cost of $1,374 by Youngstown ~lice. The police opened fire and forty marchers ,vere shot
Sheet and Tube, aJthough its officials were suppcsed to have tn the back as they tried to flee. Ten were fatally hurt. The
no connection with-or even knowledge of-Thomas's arIIlY· wounded,vere not treated as decently as they ,vould have
The Thomas march on Sheet and Tube never came off, ~een in war. Yet the Chicago Tribune hailed "police hero•
ism.''
but the bluster of its leader was a factor in persuading Gov·
emor Martin Davey-who thinl<c highly of the trees be The whole grisly story is in the pages of the La Follette
 -
1~

CJ «.tm:nee
• y~ ---
- ~"'c"'- _
-. D e,.fJtDL.£1!.
~pc E S -" ·
1i 9
heui - ~ :aovs f l:,;.:.~- - . '- ~~ was getting cold
. d thzL hiS ........ h"
:o ~ f;;c,e. Tbr !13S,.One ha(! to 5te and ·d [hat 1 noUce d be wasTllo tioni ng to ii
a ~ ;,,._ ~ ~etal h,__._ heariu •~-~-~
'° ~ tile
callee: Sam
.,.......... .........:ed of
. ~ $ Plao:-near than.~ ""-r1
t~ ~r.e.:
----'~
• r. I di

. ~ D~
[tll1llllZ
blaa an
. - r lca,ze of cigaretteS
}:le bad a p........-o
th ere
h"
~ •,;, . : -~;rt ~t- J"ght a cigar ette for un,
™ holiday listening ~ ~r ~< ..:,..t i:JS~ red me w i
~ ~ ~fa or ~....
•
that orderly
<OChJO'd · I<. ff>-:". a.erst£lO<i
he wan I did get the cigarette out it
~ by cbeir spericen the P1tlttingwould be ~ u,~
Kt- ¢ l un
I (lZd00
IJ)il1£hd,and when
d it was soakc:u
--' "th blood. so he
hoc in fr, - strikcn ,r..,__., _,. • wt<l_c: . _ .;i wt
om: of the plant. -...,uai to eaab"- r~ but -~;ntdwith blo<JU- , an 'you are all right. You are a
met the detail On their . I.Qha ~ .as- · d kid.' he !aY~, W 11 .
of some2 • way to thi., Poi . :.1 ·-.:
..,... · ever rrun ' •~ever mwu- ,_.;i Ca...-v
•• , on.' . · · e • Jl
anrl rome of them Wlth. ax 50 po
.____,, lice, eq uip~-' .
~ With tea
nt trie, good ud .' J{e say5, • the city of Chicago before we got
Com pany. ,..,.uwes pr ovided b t gi,
y the Rtpui,1 ~ we drove all over before we were a ble to get there,
•There was a bne. f argument be IC to the 1101pi~·1~:aJ a!: 1 wago n jolted, these men would
g Iin g par ade of work tween leaders of th nd ever{urne pa , d f.all on top of each other.
• era and po Ii ffi c strag . 2
bout a foot or so, an . d
po Jtee opened fire witho . ce o ccrs. Suddenly th go up a the most tC1Tibl e screa min g, groan ing, an
mel) acr0$ s the field B uthtwarn~n g. Th e strik ers fled ""I~ and thc:rewaJ h h • 1"
. ut e po lice sh . r· oin on in that wagon . Fin ally we got to t c ospi ~ .
as th ey went, pursued the e . , oo t1ng and clubbing g g t large was left to b elieve that Girdl er,
Yet the country a fi h ·
suffered any serious injury ~pi~~J mob. None of the police whilehe might have bee n a littl e heavy handed, was ~ un g
with police batons as th ·, ut en marchers were beaten for the American ,vay. Mob rol e had threatened an~ it had
Th . ey ay on the ground
been scotched. Th at was th e way the newspapers , parucularl y
Lestim::;n~~al~ttit'te of the police can be .judged by the
in the cities immediately affected, interpreted the whole
. rs. upe Marshall, a ninety -pound social
wor.kk er and strike sym pa th·tzer, w 110 had accompanied the affair.The Communists ,vere somehow b ehind it all.. Theyk
str1 ers across the pra ·1rie,
· b een b eaten by poli ce and thrown had misled the ,vorkers, ,vho should have stayed at th eLr wor
.
~?
111 a patrol wagon wilh sixteen 1vounded men. She said: and never allo,ved themselves to be made pa,vns of these
revolutionaries. This interpretation ,vas no xnere accident.
As soon as the wagon started, and they had closed the
Girdler took no chances on the reasonable supposition that
door, one ~f the policemen stepped on the step of the wagon
the newspapers ,vould follo,v their predilections. He saw w
and held his hands on it ,,,hile ,ve were driving. Well, as soon
as the ,vagon started I started helping these men that were in it that they did.
the "'agon. I started straightening out their heads and lifting 4
their arms from underneath, and I noticed that there wasone
.Girdler had had a chance to experiment ,vith and perf~t
particular fcllo,v there "·ho looked very gaunt and haggard•
3 his strike-breaking technique at Republic's Berger plant m
and he seemed to be in a terrible position. There was Canton, Ohio, in 1936. Here his vice-president, C?31"ley
ho.T}·-se( man that had fallen on top of him . and this fellow \\ lute, had personally fomented a riot on the picket line to
1
was pinned completely v.-ith his head over his ~ees- giv th · nN>mve sho,v of
e e managP.JJ1 ent an excuse for an lDly---~
stt:iigL.tcned him out. 1oaoaged w get his head on lll f b p.
 GlllDL£ll
THE PREss
1£5 A.r<D f
f,r;i.S, sP • inuenious schemes or
force. White salli URE Boys
. ed forth fr devised various. o. the cities ,vhere
picket across an ima . om the main . l
Scee ' tb union in d
RepubI,c . . aQ'3inst e vas distribute
street, the t:...~L
1.41 west
bogtnary white line . gate and P"·L
undary 10 the llti ""'ed ~ "'ti as bliCop1n1on "' Its propaganda '
mingpll d plants. "th the source care
fully
for three days truck.l of the Republic dd!e of~ iu . operate . ahvays ,v1 . . the
ublic 'coJllrIUttees, d ru·sements singing
~verything from len~~f of_ Republic guar%:,operty,1'fitii Rep · ·zens " a ve .
t11rough CJtl 11nacre "hartnony laced in all impor-
m and out of the pl pipe to automatic . atJnedWilli l d fu ·r ··o · 00 ,,ere p .
. ant gates d Pistols d c0nceae f.. dustrial co-operau t11e freio-ht ,vas paid by
tlon of Canton shootincr and a;: t_hrougb the indus~: ed 0 10
,irtues I newspapers. In eve
ry case o
. 1 sponsors ,vere ov1c
• -
and strikers impartiall '='G . urliog tear gas at b sec. 1oea the noro1na .
and else y. orillas "'ere · }'Slande!l tll1H nies but F t organ1z.a·
,vhere for one premedi imported from BuJia1 the steel compa d. 'th the steel industry. ron .
man, George ~Iilhelm . . tated attack on pickets. •- lo unconnecte "'' A ,_,.;ation tl1e Mahoning
leaderS Akron ss""' '
h • Slttlna on the fr ""od tionswere the .G~~t~ the Canton Development Corpo~a-
ome , ,vas fatally ,vounded. A'=' ont porch o[ hii
Reed sh pregnant "'Olllan i\ \'alle)' fore1nen s u ' Cl b 5 All of then1 professed an 10-
' ,vas ot do,vn and left bleedincr . . ' i Irs. ?.lary J Garden u • l · d t ,
of Republic police as th dr "' in a ditch by a carload lion.even 1~ . ro'ect of keeping loca 1n us f)
mil ey ove by her on h' h dependentinterest in the pll J ged for the National Asso-
es from the nearest Re bli a ig way two operating.Actually, they a stoo
five bullet wounds in h l pu c property. She had n~enty.
er egs and feet. The Republic Com ria1ionof l\{anuEacturers.f th H'll and Kno,vlton employees,
pany sent her ~-
sons vtere hospitalized Th
and a letter of regret. T"•enn ·-,.i!!ht :
. -, .....,,
· per - Bo~1•erfind,
Edgar . one o. e• B. l
· aham to piUt tl 1e heat •
instructedRepublic offioa 1s 1.n u-nuno
settle damage suits. . e company paid out $46,000 to on localnewspapei-sthrough theu· advertisers to force sympa-
1Iuch to the am :u:ement o f Girdler
• thetictteaunent of steel labor ne"'S- ,\Then questioned about
. and other Republic
this bYl..'l Follette. Bo",erlind e.."plained that he must haYe
. . the Cm,ton Re,.,...,·ton,
offiaals, r~· •✓• the local d:-" · eelm
.u.y, persist ·
suffereda "mental aberration" "·hile harboring the ridicu-
prinung the De'l\'Sof the "riots'' in the neeof threats from
the companv. This convint"ed Girdler that something should lousnotion that the &tt press could be thus inRuenced.
Besides linancin,g the ne\\'SP,'\peT ad,·ertisements. the
be done to guard against this kind of unfuvorable publici11.
Republic alttady was hiring the firm of Hill and Knowhon. N.A.1£..through Hill and Kno\\ •lton, pa"•n.ed off George
Sokolsk)•,Nt'TI•1·ork. Herold Trib1u1e colun1nist, as an impar•
Cle,eland publicitv counselors. but after the Beiger e.-.:peri·
en«-. Girdler in~a~ itt rel3iner and the scope of its tial speaker at meetings sponsored by the lool associations.
duties. '\\nen the •93i strike came along. Hill and Knowlton Sokolsky·w,\s on the Rill and Rnol\ •lron p.'lvroll at 1,000 a
~onth. but his salary wns paid to the publicit firn1 b,, the
"-;is ptt-p.u-ed to dish out the comp;mY's side of the ston·. In
;\.,\ ,}.{. In fuct. the N.A.il. not onl · paid Sokolsky 'l\"t'll fot
bet, it started dishing some time befott John L Lc"-is c:alled ..consultation" but also ~,-e the lOC!llotgnnir;ations :t &f: t1f
out Republic's emplo'l"ees.
311d $50 to finance the meetings he ad~-
During the C.I.O. ·s stecl~niation c:am~i..~• Hill
.\.~r the stt:cl strike, Hill and Kno\\'lton tool:. Republic
Knowlton, "·hich had conntttions '\\-ith the N.,tie>n:11 A$$<~
:\l\d the other littlc.;ste<'lcon1})-'11icsfor a t'C3l cle:.nit~. John
ci~tion of ~fa.nuh<'tUJ'('l$ a.ndthe Iron and ~I lll$t.iturrs:s
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"I
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1 hi•u hal Jnnc ·N 101
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ti
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Tu \ •V11~hln1-11nn,(Hrdlc·r cllcl nor tc>lysolrly o11IHII nntl ul Ny,•'• 11,11r1nt·111 nw1i11R11he lnhor ho,u d nup; · . 1
K1111wl1011 ro, l,1vn1,d1lt' puhllrlty. I It• rook on Sam Jonri a1 ht·1·11clls1ov1·1t •tl hacl 11 noL brcn dist1ib11t<·clin 1hr Nallo('.111I
• ,t,e Senatr t>,css ,a ·
1111nddc•il xr,111r1. \!Vhrn Ginllt·r catnc• 10 Wn~hi,,'gronro J11cb~ ht•fo1c Nye p.ol I11~ LO
B11ildl111i: • .· •
11
lc•x11rylic•ro,·e the• P o~, ()ITirt• Con1n1i11er, 10,w,, n,rnngccln lcry.As it wns, Nye indig11n11tlydenied that J ones had w t
Jllr.•• rou fc-1rnr.e to ,vltlrh n st•lc·rt fr,v frl~•nclly newspaper• ten the st:ucmcnt for hi1n. Jones denied that he was th en
1nr11 \Vc•relnvi11•dlo 1n<·rt1hr nt:,v rn1ployt•rs' ltrro. Girdler i111hcc1nployof Girdler. The I.a Follcue Co1nmittee subse-
,vns HOnb118ivrof Pre8idcnt Roosc•vcltnnd other New Deal q11e1ulydisclosed that Jones received $690.30 from th~. Re•
officials, however, thnt the publicity bnckftrcd and ffifl and publicSteel Corporation for "publicity" and "expenses less
Knowhon pcr8nndcd Girdler to repudiare most of his inter· than a 1nonth before the Nye release hit the nev,1spapcrs.
view when he re1111nrd 10 Clevelnnd. The explanarion was
thnt Citdll'r thought his intcrvie,v was "off the record."
Later, after the Labor Board had ft.led charges against the
Republic Steel Corporation in connection ,vith its strike·
breaking methods, Senator Gerald P. Nye of North Dakot.i,
 145
''GIVE US SHIPS
"
Government operation of the
and T eapot Dome. socialistic venture was entire . 1y
nnaIcY -11 sue I1 a
;oet wasimpos~) e.Accordingly, in I 920, Congress passed a
e of the quesuon-. . Board to transfer the government-
CfIAPTER. 9 0111 • he shipping .
.,~direcungc . 'dly as possible to private companies. But
l,. · as. 1ap
1
wnedships E ign lines could operate more cheaply
''Give Us Shi ,, since coinP.eung . ore
0
-as a result of the property lobby ·s tar1·ff
BErwEEN th ps uianAmerican
1
. 1oesctive private owners would have to be given .
term . e outbreak f
inaugura] of o the World Jls- thc ptospe
wa . · ent for taking the tonnage and k'ee p1ng . . 1n
1t .
rnent spent Roosevelt II War and th someinducem
chant m . approximately $3 a' the United Stat e second. l · inducement , ho,vever, couldn't be called a su b s1'd y.
arine, financi . , oo,000,000 b . es govern use.T 115 ver do to admit that American • • • • •
1111t1auve cou Id n ' t
transferring m ng Its opera•: Uilding a · JtWOll ld ne
p oney from th ....on, and . . mer.
ants pockets of . e lvallets of th ' incidenrauy overcomeany obstacle.
been the best fille~r1vate shipping com e taxpayers to th: Variousdodges resulted. The Shipping Board entered into
representatives h trough the America!any ~fficials.It has managing-operatoragreements under which shipping com-
ple have had th' _asever provided and public, tl1roughits panieswere paid lump sums and cost plus for keeping Old
eir feet · . ' some of O b Gloryflying on the high seas. But there still remained the
d ozen
.
privat "
e LOrtunes h
In It for twenty
years. No 1
ur est peo-
un-Americanfact that the government o,vned the ships.
sh Ip subsidie S ave been suckl d ess than a
Underthe operating arrangements, fees were excessive and
The shot a:·s;~e of them are still fatt:ni:ngd fattened on
costswere padded-but insufficiently to provide undercapital-
merch . a3evo found the Un· .
gro ant martne of eighty-fiv Ited States with a pitiful izedship operators the where,vithal to buy the ships at rea -
flag~ ;~ns, en~ged in foreign c;;:::~• aggregating 400,000 sonableprices. The property lobby went to work with µie
ey carried Jess th e under the American result that the desirable ships were sold at givea,vay prices to
~orts and exports. Presen:~ Io _per cent of the country's im- the favored
. f e,v w h o put up most of the purchase price . by
e German blockade d _Y,lv~th war trade flourishing and the simple means of signing low-interest, deferred-payment
States Shipping Board a:~m_aung Allied fleets, the United :ort~ges. Witliin a short time, the operators, through their
gency Fleet Corporati its corporate entity, the Erner• ..vVash1ngton
. spok esmen, convinced. Congress of the need for
"G·zve us ships " B thon, were ans wer1ng . the Allies' plea- mail paY" to supplement their revenues.
ish activity,
· · the · United Y eS end of the war, as a result of fever- Th~ postwar years were one long, uninterrupted carnival
and leased 2 sh· ftates government had interned built £th
or sh1pping men ,v1tli . the nght
. .
Republican .
connecuons, and
' 500 1ps o 2 4 '
What to do with th ,ooo,ooo dead-weight tons . e lobbies helped to establish and maintain these connec-
the problem, Hard· e~? By th e time Congress got ar~und to t1ons· Favor1tism, .. .
misfeasance, malfeasance and plain graft
reaction from w·i mg ad been elected on the wave of the were th e order of the day. It was all committed-as larceny
1 son and the country was on its ,vay toward so often 1s-1n · · the name of sweet patriotism. The slogans
144 •
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,t
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111.1 11. It ll<'' , • h.11 ,.,in h,1s1•1n,•n1pl'in• of $ 10,tltlO,('I(\\),
'"" ' ,,, 11111\d ,11 th, 1l. '"•I. h·,s ~hrnnl to onlv
• , 111.. w 11tin,,• .n 111.\th\of ll,[100 ' cssc :s ·' '
\ (1 . I l '. f )l\l' \'C '\·
''I shi1,~ ~)fll,:\I 1,01,11gt'l.).SS tons, sr.l\~ )' t '.c ::;11.(' o t •
1 t t·,1-r1 •• ·,bout .io per
S,
,x,11.1blv •
p1\1SJ)t'l\l\lS \•.\\\ 'Opt',\\\ 1·\\'\C-, • c:::s• ,, •
(\'t\t ,,rthe 1-.n1111r's d~·pll'tcd foreign trade. !\{ost of tl1cs lu!>S
h11iltduring the ,\--:11 · :\l'C- laid up ,1nrl collecting barnacles in
fo1~"1uen t'll:\St:\l inlets. The ~(.1\'itin1c Co1nn1ission proposes
10 rcj11,·enatc the fleet by spending $100,000,000 a year 011
1-.,11stn1ction subsidies and $5,000,000 to $10,000,000 on
operating subsidies.
One of the p,·incipal justifications fol' the old syste1n of
subsidy-.·111dthe ne\\•, for that matter - is the disparity be-
tween the Ame,·ican standard of living and the European
and Oriental. American o·e,\fs have to be paid more and fed
better. Yet the l\{aritime Commission stated in its first report
lo Congi·ess that ship operators "imposed long hours, lo" ...
,,,a.,.... d .
<>~ an cramped quarters" and that in the forecastle the
average American merchant ship ,vas "cro,vded, insanitary
and poorly ventilated." The American standard of living
 aboard ship w
Tl-{,e l>R:t
ssuR..I!:Boy sflJPS
.. 149
as stiU s "GJV:E tJ S
of Rahway real -estate mortgages.
ess~ys. Rather, it Was no fit subject for .
as it Was the t· a handy excu Pa.triotic h· . f . $60,000 \vorth l Steers T erm inal Company,
. lJlle-honor d se for h 1gh boughtitb:~ght for $6,o~o :i:: for Export ships. And then
su b s1dies wh.1 h e excuse £ eavy subs1.. Sch0o1
c thcoref or extorti dtes • Jlc_alsorovidcd dockage ser O'Connor, who had come ~p
ard of living for deck h:caUy preserved the onate tariffs.'~11
cally drawn off . nds through tl1 Atneriean8 •Qc which pd cultivating T_-V. ti: chairmanship of the Ship ·
into th · e •20• tand artc . . nion to 1e
through e private s lYere · tie 51 h a stevedores u H berman's ungrammatical lan·
. . complicated holdi accounts of the r· systerna1i. t11roug d talked er
~1~e-l1ne systems . Th ng-company and t~ht People . Board, an
piog • s "outstand-
s1d1zed shipping e Labor Board has . service-alJilia1 guage. . d at once that O Connor ,va
th . companies f Clted sev c Jlcrbennan nouce d nd "didn't bother with any of
e1r employees in . l . or coercing and . .era1sub. Sh· ing Boar a
There was thie v10 at1on of the Wagner A intunidating ing" on che ippo•c r .. As soon as possible, he got a
Mr onno .
fr very under ev ct. them e)(cept . . t the swank Mayflower Hote 1.
·om the day the back- . ery variety of hidden . . t to O'Connor s a
effect by Harding B to-pr1vate-ownership policy subsi~y suite ne)(. • and Steers companies show that these
r . ut none of it wasput in Recordsof the Export
..
. <tS
ostly Expenses ran as high as f ,ooo a o
m nth
.
ight purse snatching as that a ,vas_so nearly akin to da)'· v1s1ts were c · d d d 1 He
~., O'Connor Herberman bothere a goo ea .
White Act of 1928 the l tbccomplt~hed under the Jones- About,.,r. • • , · f <2
. ' aw at prov1d d . l about little things like a tailors bill or ,...510.
tlons. The act stipulated that . e for mall subven- h
wast oug htfu how
made only aft . . mail-contract awards shouldbe By some coincidence, books of a Herberman company s
er compeuuve biddin
the forty-three mail co tr
A
g. ctually, but one of
as 510
cash withdra,val at the time a bill for that amount,
· n acts awarded we t 1 . madeout to T. V. O'Connor, was paid.
not picked in ad b n to a ow bidder
But O"Connor ,vas not the sole beneficiary of Herberman's
recipient. The m=e y government officials as the logical
b . um rate allowed by law ,vas paid on all kindness.For several years the Export Company continued
ut six _routes. Postmaster General Walter Brown, Hoover·s to operate ships owned by the government in the Mediter-
m~n F nd ay and chairman of the Republican National Com- ranean trade. By 192 4 Export was sailing eighteen ships to
lllltt~e, awarded two fat contracts to the International Mer- Southern Europe and Northern Africa. Until the operating
canule Marine at a time when he owned 4 ooo shares of companycould buy them, repairs and upkeep were the gov•
stock in the company. ' ernment's responsibility. R . D. Gate,vood, a naval officer
assignedto the Shipping Board, ,vas in charge of repairs and
t
maintenance at the Port of New York.
But the classic of the shipping case-histories is the story of Herberman was nice to Gatewood. When a mortgage on
Henry Herbennan, affable, go-getting New Yorker, who got the California ranch of A. ,v. Pattiani, Gatewood's father-in·
his start as a trucker in the war-boom days. When the Expart law, was foreclosed, Herbennan put up $12,217 to buy the
Steamship Corporation, which had been organized in 1919 property at public auction. Title to the ranch ,vasput in the
name of Joseph Schultz, Herberroan's chauffeur, but Pattiani
with $1,000 capital to operate government-owned shlps 00
continued to occupy it without paying rent or interest. He
contract. W35 offered for sale the following year, HerbenJ13D
 Ttt:i;: PREssu S sttIPS " .
also received a h d R:e Boys •'G1v£ v h 1 birn bargain
ry, to ep .
er of cattle . f!ouse secreta d Slemp's services
pe di greed pigs "to kee .. Valued at $10 vVh1te be value
So well did G P for l:Ierberzn,.~ •000 and for1ner Board, but ooo Berberman
atewood t k
Export that by 1926 wh a e care of the shi
~· sollle s1ci11P, shipping
. 1 die presen
ted a bill for $5°• ·
",11i 'fhe Ja1vyer ete
they had cost th ' en l:Ierberman finaU ps assignedt liuhdY· i ooo- ,,hat he needed to comp
e government ~ Y bough 0
,:id hiJ1l$ 5, . g unassisted, , . B d went so far as to
and repairs and $325, 6 f -11'1,171,432for Ill . t thelll, r· uetun ' SI · 1ng oar
tiated between H b4 5 or betterment . The saJ a~tenanc,e f{e wa~o shippers. ~~e 11pp e costs, a concession no one
e er erman and th . e Price n
..,1,074,134. The Lambs, one ~ Shipping Boar ego. ,dth foreignercent of his ins~ranc -r-1 berman with ships on
, 662·3P t provided .n.er d
,vas fitted out with ~6 of the ships sold to Fie b d. w<l4 pa) ble to get. I ental of $137,000 an
h 'ii' ,ooo worth of . r erlllan tsewasa • trade at a r . h.
ad been closed, a gratuity not called ~v1nchesafter the deal e for the Russian G 1 Bro,vn to give im
charter Postmaster enera
There had been hurdle or by the contract no-ed for
th . s to get over i tl . then arra O • ·1 ay. • ·
ose eighteen ships and others i . n le purchase of s,35,258of it back in m:1 ving trouble with one of his prOJ·
Herberman fleet. For example, the ~edi:ely added to the But Herberrnan ,vas a $7 ooo ooo to build four
d borro,v some , •
a $500,000 reserve of liquid . l pp g Board required ec1s.H_ewante toboard was not responding as it should to
th at on the name he had b this tim • Herberman
capita
.
b
orrowed newships and tlle . . of Export finances revealed
and some of his colleasrues y e established. O'Connor his overtures. An exanunauon Th ·tuation
"~Ir T d " o on the Board ,vere considerateof thatithad$3 of liabilities to every $1 of assets . e s1 h
. ues ay, as Herberman ,vascalled by Shi in Board ce Robert p Lamont, w o
wassavedby Secretary o f C ommer · .
employees because of his habitual Tuesday . ~p g recommendedtllat the loan be granted and later was instru-
Th VlSlts .
ese employees had not been overlooked by the head of mentalin gettino-an extension on payments.
the E.xport Company • M rs. M.ma G . Irvme, • O ,Connor's sec- Bythis time the generous Jones-White ~ct ha~ been p~sed
retary, ,vas interested in Florida real estate so Herberm.an with Herberman's aid and his annual mail subsidy was raised
c~mmissioned her to act as his agent and buy some. He pro- from a mere $1,044,000 to about $2,185,000 . Yet the com-
VIded the money and the property ,vas put in her name. pany'sprofits ,vere modest enough. ln 1928 they were $9,5oo,
Eventually, Schultz, the chauffeur, became the nominal and in 1929 some $500,000. The Shipping Board apparently
o,mer of the property in Florida and of a ranch in Cali- thought the company was entitled to these earnings because
fornia, but he never knew it. it did not enforce its agreement that Herberman would pay
Herberman was becoming a big man in shipping. His proj- backthe insurance charges in the event his companies showed
ects were expanded, but this pioneering witll American a profit.
freighters, of course, required a great deal of encouragement The fact tllat Herberman paid himself a salary of $125,ooo
from the government due to foreign competitive advantages. in 1 928 and spent a small fortune on expenses probably had
Herberman knew ho,v to get it. He was l1is o,vn pleader something to do ,vith the meagerness of Export's earnings
and contact man . He needed no lawyer lobbyists to help that year. And in 1929, the showing might have been better
him. On one occasion, to be sure, he engaged Bascom but for such items as $25,658 of "undistributed expense" and
 •5~
in
_on<:-u1o nth $1
Tli £ l'R.£ssu
It£ Bovs .,, US SHIPS
.. 153
''GlV""
llntte1ui,...., d ,400 for 'Vasi . . 1 spoke, or represented that
"'' .1 ,·er•; . Hnrn
f).lid to L>' ... sing. One . o· 011 tra, ·e1 , l occasions 1e
.. <.er~rn,an by ) ear a. $ 1 .,..~ ¾d i~. on rrcqucn . nt in shipping 1natters.
'\ tthdn\\-als b, th Herber1uan. -~,<>oodivide: fat ll\~,r,I. . for the Preside . vk.,vard performance, after the
Port C'.om e O\\·ner ,,·e 11-ai - ,o\.t:, ,.1 •ber1uan s a, l t d
he>1 . -ult of .oe1 tl1e shipping industry e ec e
Ufl('n ~ p..1.u,and the St~ re he:n, , both fro \ s 1 1c, . po,ver
:>..port for its • rs Con1pau lU th : · ,~1 c;u11e into . h sins of the e11tire industry.
• -~~) in come . .8,· 1 ,,. \\•hich d e l\. :\t'~ 0 l'.• • , to expiate t e . . th
• •000 our of his t'O 93-t, Herben epelld'd •,. i1 ,_.i1ipp1 ng bo) ·t1 tl1e holier -than-he shipping men, e
Ill · \Vl 1 H H '
•~~o his 0\\'ll. J)OCl:.etand hlllfl.1nies. Ro,,, llluchuan had takto co-opernuon SI . ·n(T Board Bureau, H. . eunan,
111 f the upp1 o d th
ttsing-'• <llld ·undisn-ib o"· much "-as Jlassed of this"~t ihen director o . f Con1merce Rop er's inen, decree at
Ill.lo loo""' Tb Uted C..\:J)ense:· no1. _ _, on for"adter one of Sccrec~1y o l. elf of all his stock in the Export
.... e go,-ernm U\){JYe..x~ · clivest urns . . . C
comp,.-ln.i~ t th ent subsidued Pt Berber. Herbenuan . The Ne,v York Sh1pbu1ld1ng om-
Des . o_ e C.\:tent of $.t5.00o OOo the Herbennan . Corporauon.
Sce:nuslup . . b cc12 • ooo but held it for only a year,
this outpour from
,pltc ' · bo <Y ht it for a out " :,, ' k
Hcroenn:m 's Jines ~ to the go,"ernment cornuco. p.wY u,,
or less an
d tl
1en
sold it to a g,:oup of Nev,r Yor.
.
lt de, ·cloped th.a .:. . find th e going rou!lb in Pia, more . clt,1dino-Lehman Brothers, for a sum approximat•
Fl · .1- t details of the Califo . o 1930. bankers, 1n
. . tmento
The ne,v 0 ,vners collecte d cc .,,1,500,ooo
onu.1 t'Cll-estate transacti rrua ranch and the in" their mves ·
nution about Herbenn • ons as "'ell as other inside inf-or in"dividends from this company esta~l~s~ed by Herbennao
Lr an s methods full · within a period three years after acqws1uon.
.-.oo,-er -~dministratio n. "'ere y known to the
Except for the unhappy ending of the Herbennan_ story
Acting on order from a sea .
Justice De • . e~ to President Hoo-rer, the (he has clied in the meantime), it is fairly representauve_ of
pa.rtment Inl'estigated the Gate,~'OOd affair d many others . Anything ,vent so long as government offioals
reported that the circumstances " 'bl . an
criminal .. p0SSI Y • • • constituted and public opinion ,,•ere kept ,veil buttered.
acts. Yet no action ll'as eyer taken against Gate-
'\-ood and Herberman. In fact, it ll':lS after this that Herber•
man l\'ns granted a construction loan on recommendation of
Secretary Lamont as spokesman for the Administration. Ocean-mail and air-mail contracts ,vere important politi-
The '\Vhite House also ,vas in full possess.ion of the fnctsin cal assets to the pap-dispensers of the Hoover Administrati~n-
the In'ine affair. Nothing was done about that either. After a Successful lobbyists in the field ,vere all close to the White
visit from a Justice Department agent, Mrs. Irvine got rid of House. James Francis Burke, ,vho helped the International
her records and Herberm:m shifted title to the property. ?v!ercantile l\iarine negotiate the purchase of the United
And O'Connor continued to be reappointed chairman of States Lines, ,vas secretary to the Republican National Com-
.
UUttee and a Hoover intimate at the ume · tl1e deal ,vent
the Shipping Board. Even ,vhen Hoover started cutting down
its size, O'Connor survived all the reductions. Throughout th rough. Elisha Hanson, no,v the ne,vspaper publishers' lob-
the Hoover A .droinistration he l\"llS a frequent visitor at the byist, got La,vrence Richey, Hoover's personal secretary, t~
White House and carried its mandates back to the Shipr: · help him ,vangle a mail contract for the Gulf Pacific Ma
 ~.i£ ••
t: S s a 1PS stnall-
:n=:..~ - ~~ ¥..Jy,_
· •G l'°L . rials into the
c._ - ~ h-=.,,., . canned edito . throu 0ah 1oc:al
kJlQI
£1:; ,,,._
i, -,;:
•~t:, ~ •-'CiJ
.'l..~..-lu i.or
~ ~ • ~-
lliie y.,b ,
;:;
. ~llZted ~ 11,)_'0'U
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~ 1n;::zu z-._.. ,. -
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. -· ,. e: czil~p-rc;>'"'
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i::--' C,;cn;p-;~~"= ,-.4.:,i . Un!Jh ed.
i;,Irn:}(:-fl!:d •UA. ,'!~
- on "- 11l'-ci. ~- • • ...., :'~...,Y ~ . . :\fcKinnoo ~'rote
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11. ·"~·"l , .... 1 -~ - _,,ur ·
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 157
THE PR..t::ssu sllil'S "
L"
An example i·s f
ound ·
R.E Boys ,,
o JV:£ IJ S •
Am erican ·flag
Ines, which the . 1n the subsid• .
so far as
of ·1k·
m1 ing for sever
0 ne-tun
. e_ powerful D
izedn ollar St
the 'North p.tlanu c has received all sorts of
the operatin al n111J1ondoll ollar did ealllshi. JlloooPo lY_ o;oncerned , the 1-~:-lines, P. W. Chapman: a
g company ars . In 1 a fin . v hipping is f rrner owner of ch about the lobbying
managerial affil • Was losing rn 932 alon e Job s '[h e o "d 't knOW mu h
. iate Was . ore than e, wh·1 r~vors, ker who di n t. ng the Ii nes before t e
paying executives sala . rnak1ng a profit £ $1,ooo,0oo1c . o ban o ooo opera I . d th
Th nes of $ 1 o ~60 ,a c111 cag ed some $5,00 ' h overnment insiste at
e old cow ctr· d
1e up b 35,ooo
. · "' ,ooo and (Tie
, dropP artlY because t e g Leviathan.
greener pastures b th ' ut It has be ga1~f. got them, p . 1 phant of the seas, the
f Y e Ma · · en turn d J.~ . that old white e e H ver shipping board
or the benefit o f th e D II r1tune Comnu· ss1on- . e out 1n . heoperate M took over, the oo af
,vhen the I.M- . of required sailings, and later'. ter
of 1937 Chairman Ke o dar family, however In ~t this time
down the number the old hulk was laid up.
Wheeler and W R nne y had turned a de~£ e surnl!Jer cut me to power,
£ · . Hearst h ear to s 1
the New Dea ca O Max Gardner of North Carolina, one
o the rise and fall of the "C; w .~ ~oured out a piti~i°ator FonnerGovernor . l bbyists helped to put that
R. Stanley Dolla . ppy Ricks (the Dollar) tale t of the lav;yer- 0 '
. r and his associate H fortune. ofthe mostastu e L . than steamed to an English junk
srnce been replaced by w·ru 1 am Gibb
' . L. Lorber hav oneover.Rec~ntly the evL~a are doing very ,vell under the
f · ' e d The United States ines . .
~rtua-former Senator to who s McAdoo of Cali- yar . . . vith their government-financed cabin-class
non o,ved a 1·ob-and b m the Roosevelt Adtninistra newd1spensauon'
Y two of Jos h p ·
men, Joseph R Sh h ep . Kennedy's bench- Liners. d C any got
. ee an and Arth p J. p, Grace, president of W . R. Grace an omp _ . ' ds
is concerned the . b . ur oole. So far as McAdoo
' JO IS patronao-e d • a salaryof $75,000, commissions of $398,050 and dividen
nedy's friends ha . . o ' pure an sunple. Ken-
from the sch 1 v~ JOtned the property lobb y as graduates of $498,610in 1928. That year the Post Office Department
oo o pseadocareerists in government awardedthe company another mail contract to keep the
.Th. e Dollar Lin es ,vere b y no means unique in· their Americanftag above water. .
milking practices. The International Mercantile Marine The Ne,v Deal's ship-subsidy grant of 1936 was hedged 1D
could afford to pay a la ,vyer-lobbyxst . $370 ooo in the five with numerous amendments sponsored by the then Senator
years ~llO,\'lllg enactment of the Jones -~te Law, even Blackand Senator Bennett Champ Clark of Missouri. These
tbough It 'YaS defaulting in the same period on its obligations amendments ,vere unacceptable to the shipping lobbyiSlS
to the government. P. A S. Franklin, its president, took and, therefore, were not added to the bill in the Commerce
$ 1 ,952,410 out of the company in thirteen years. other Committee by its then chairman, the late Senator Copeland.
officers received comparable salaries. Kermit Roosevelt, son However, they ,vere tacked on the bill as a rebuke to the
of T. R. , and \ rrncent Astor, intimate of the President. shipping lobbyists on the floor of the Senate in the closing
~e conn~ with the I.~f.:\f ., perhaps accounting for the hours of the Seventy-fourth Congress.
One of these amendments provided in reasonably clear
.kindness ~"Uh which it has been treated in \Vashington
language that no subsidized shipping company could use
regardless of the party in power.
government pap, directly or indirectly, to pay salaries in
As half owner of the United States Lines, which have a
 l'ltt,; l''R'&S"'"
s1,,1• $
, ,: l1!'.-•
.. ' I 1'11 111"'
, !,~l

•>v'R& \\ • '(;I \ " II\ •

of $;2 ~ """
t''l.<'ess O\>s ·ti ·1tion. tlc is~ 1·
. " ,, ,v,.,v a year A . • 1 (11c ii" cs g, • I he air\iucs. ns
,, htch the po'l\-er of tl . n •llttstration £ • 111 w11 1 ·csc nl In ~ [ I •
f . le ship · o lh . ni111ll' (lll I ' llllSillCSS ,cpl · 11 · ,vas secre tary O t 1C
ottnd in the tortuous inter p:ng :obbyists cont~ n1a1111er i ,ce,11 ' lob 1) • •rclon1, c . .
of la"' by one of th pi etatton placed lUcs'''ill ~n •.,shi11!1H>' •eel l>Y : ) 111 111 . , went to Jatl.
O'R e present l\.f • • on th· ~
ell Truitt , ,vhen he a.r1t1me Com1ni . is section '1:~s1i gc c11hn'.,\ssociatiot1,vhcn fltcthe airline opera tors ,vcrc
the commission. He . ,va~ serving as gener ssltoners,tra.~
I · ·all On1 • nduct o k d by the
A111cn[ t thC n11sco ( .. ticis1n provo e
l d . is a son-1n-Ja,v f a counse facts.
nbo0
tten in t ,e
I storn1 o Cl l
. ·1 contracts an en r
d t ust •
ea er in the Senate Alb o the present D l for Jly{orgo . the a1r-1na1 't
. ' en Bark.le f eino genera , der e311cehn g . . The Arn1y wasn
pretat1on has made . t . y o Ken tuck . Cratic ·dents or Air Corps. .
. 1 poss ible for y. His in
b e paid through h !di much highe ter. rrcSJ ails to the Arrny 'dents resulted. The in -
. g the tn al fatal acc1
Joh J F o ng companies. r salariesto in . b and sever f I m to obscure t I1e
n . arrell, of the American up to the JO . ss rnade the most o t i.e om ·
,vas enriched to th -South African t · dustryand the pi~ d l albeit a minor scandal as c
e exten t of $t 3 2 I.fie,Inc air-mail scan a , .
pyramid between I 926 and t ' a 5,2 12 from his shippin., unpleasant . ·n -industry affair .
many interrelated companies 9~ °(:
,vas a director of s! pa
red with the shippi g
Relativesof ena
S tors Congressme
, .
n and governmen t offi-
·1 lines Ernest W . Smoot,
what they ,vere or ,vhat offices he ~eld einc:!:'t remember
cialswere favored by the a1fr-:rnai Sena~or Reed Smoot of
T he Lykes Brothers Steamship C . of dour onner d
Gulf ports, ,vasn't satisfied .th . omp~n!, operating out of son and secretarY . . q 00 and collecte
U h billed air-mail 1nterests for t1 i 5,o . . b th
the speed of one of its shi ;~o a1ts s~1bs1diess_oit lied about ta , . . • ·th a decision Y e
la,v allo,ved. 1\fail pay ranp d froet higher ~at! pay than the $2,500for serV1ces in conn~cuon :"'1 nts T ha t was
sh• ge om $ i 2 a mile for the fastest Compuoller General affecung mail payme · .
tps to S2.50 for the slo,vest. A former first officer of the S.S. whileSmoot \Vas still chairman of the Finance CommitFtee.
Similarly,Lehr Fess, son of former Senator tro~on
s· D ess
· ,,
,\Iargaret Lykes admitted that he falsified her loo-regularly
0 · " edi te passage
under orders , to m"-"e-•· unagmary
· • bad ,veather accountable ' of Ohio, got a fee of $3,000 for he l ping to exp
for slo\\· voyages • The company ,-vas overpaid. some $435,000 of the \Vattes bill giving the Postmaster General_ power. to
· · b"d.>:- Julius
as a result of the fraud, \\'hicb sum was subsequently recol'• renewair-mail contracts vvitbout compeut1ve 1 l.Ullg•

ered by Po.~troaster General James A. Farley. Similar o\'er· K.ahn,son of former Representative Florence P . Kahn of
statements of speed cost the government $15 ,000,000 betwetn California, represented '\\Testern Air Express in "\.Vashington.
1 9 2 8 an~ 1935. of 1\·hicb Farley 's Post Office Department suc- Colonel Paul Henderson, son-in-law of !\fartin Madden,
cee~e-<l 1n rcco,-cring appro.,rjm:ttely s
2 .ooo,ooo prior to the
former Republican chairman of the House Appropriations
Co!llmittee, a representati~e of the United Aircraft ~ra-
mail contr.1.as' termination.
tion, 'l\"3S thou.,obtfnl enough to make $13,000 for :\!rs. Hins-
Collusion and fraud also were discorercd in an in\"CSliS3"
bury, wife of a Coromf'Ttt nepanment official, in a stoek
tion of ~r -mail subsidies after the 1ro\"CTil.IDfilt bad paid out
transaction. Toe Colonel "ired his principals that they need
:ahN.lt $!:S.000.000 co a'liation ~panics. '\'iDiam )Iac-
not wuu, about the derision of an Intadeparooental Com-
C-.nctni, Jr.. was ja.iled for contrm.ptof the Senate after~
mittee on -~Tiarion since Binsbury was one of its members.
h:addemo-reddocuments $Dbpocnaerlb-. the Bbd eon,mit-
 LEA.GU E RS
LI» E !l.'rY
'ft-tr. • n for repeal.
The
'th the campaig . h
roparable w1 d d die that property ro1g t
a pro]·ect co eat1er to blee an. h d becoine accustome d
~s' s not s0 o which l t a
p~b)ic,~atie privileges to era The Liberty League,
1oj Yal;_J idint1-Coo1idge•1:1~overth t. AJnerica alv,ays had
e1
CHAPTER. 10 . t11er,ar O
in d to the prOp 0s1uon tinue a ··
to pour the oil, was
dedica te d should con
oioted its rich an l Its list of wealthy sponsors drew cat·
The Liberty Le
T aguers an
1augtied
t of 5cboO •
ou f h annas, . f
HE LIBERTY LEAGUE . Usinsteado os . ·t put on in Washington be ore
Roosevelt a ' organized in 1 ca'file gold-serv1
·ce dinner 1 th ntold thousands of votes to
inca abl , mply d~monstrated that 934 after a Yearo paign ,vas ,vor u
p. e of operating in the the property lobb _1 ibe 1936 cam W hington newspaper reporter who wrote
organization was , 1n. £act a open.
b This much • ·ma!' y is Roosevelt ..1:he as at one point ,vas so quiet you could
ment in honesty E
de . .
, no le-but disastro
. xcept for the de .
iglled
. us-experi- that the dining
d d" room
mond tiara drop was describing the stea l t h y
. ception which notably failed to d ~epuon in its title, a havehear a ,a. J
a proachof rigor mortis upon the Liberty Le~gue: t was
dishonest about the L ece1ve, there ,vas nothin ioosevelt's best campaign issue . The Leagu~ ts still ~ech·
eague. Cone · d g
ouett
J .. Shouse it . e1ve and launched b nicallyin existence, but it keeps that as ~u1et ~s ~oss1ble.
' was mtended to · Y
polittcal philosophy of Al S .th give expression to the Its operations, as it turns out, were beneficial pr1nc1pally to
of the du Ponts. It set itself 1;;. and th: economic interest.I theNew Deal and to Shouse, who drew $54,000 a year, hot

to the public r
for the rich. It re rt d _Pm Washington as spokesman
e salaries, contributions, and ideology
it was interested~vas: Co~gress. The only liberty in which
or cold.
It may have been of some service, too, in teaching lobby-
ists the lesson that the hand which pulls the legislative
After th first e liberty to hold and protect property.
few weeks of its stringsshould always be concealed. Most professionals had
. e · extStence,
· · made no bones
1t
about its motives. beenaware of this before Shouse proved it beyond peradven-
ture. In fact, the big moneybag men behind the Liberty
Shouse, a suave product of Kansas politics and an experi·
League did not themselves have much faith in the efficacy
C'1ICed lobbyist who once represenred the Association of
of open lobbying. They hedged their investment in the
Stnd• . Fxchaoge Fi.ams,a h d been eminently . .successfu]as the Leagueby contributing to every kind of disreputable gum-
gwdmg genius of the Association Against the Prohibition
shoe organization Washington had developed over a period
Amendment.. ,v-lththe du Pont moneybags alwa)''.Swithin
of years.
reach. fk- n:odoubredly wa5 partially re,poruible for the sue· Black reported to the Senate in June, 1936, when the
?S•fatl campaign to rid the land of prohibition. But dUS moneypack was in full cry in the hunt for voteS to beat
W2S a pushover. Public opinion was ready for repeal when Roosevelt, that a total of $t,o84,6o4 had been contributed
~ 2 _udhis associates put their shoulders to the caU5t- to fourteen anti-Roosevelt organizations, including the Lib-
~ JDJctak~ --- m· CODCeJVIIlg · · th e campaign - w, c- proy-·,
.nPrtf
,&,
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. . ·\tll <'l'II- \\\ \t )['I l It> , •
"~·""'.1 I . 1· ··1•\111ls \111\e sig11t•tlcards .... 1~,e1y 111·
.. •ll\l ,,, ~ ' •• that if t,.Ir. Roose, •ell 1s
t11r1h')l\~l\)I •
re -electc d
tonnt"<l:\1nenca n ..,no,,~ . '
. . h~ ·overeign ri<> ·hts of the states " •ill be complete!)
1
111I [)~ll, I - ' 0 •
. hed ~,~d Po'~er O\'Cl' all then · affmrs httle an
• • d b. g
l t'U\ollS. ~, • •
l be con$olidnted in ,vasbington ....
will ,ve are organ1ung
theSouthern states as rapidly as ,ve can."
In the course of its campaign to "·ean the South a">a)' from
Roose,·elt,the Southern Committee staged a rally in l\1acon,
Georgia,in the ">inter of 1935. At one of the meetings,
delegates found upon their chairs copies of the Georgia
Woman's World decorated with photographs purporting to
: 0 ~t family .................. . $204,<45-00
~ • t associates . . . . . . . . . · · · · · 152,622.68 show that the Roose\'elts bad practically turoed over the
tcaun £amil ············ \\'bite House to Negroes. One of them sho,\•ed Mrs. Roose-
Pi. p. Morgan associates
y ....•... .. .. .......... . . 100,250.00
J~felloo 68,226.00 ,·e\t being escorted up the steps of Ho"-ard University, a
awv:iares ·················
R..ockefeller . ........ .. ·············· 6o,752.55 "·ashington :Kegro institution. by two colored cadetS on her
49,852-56 "-ayto address the '\Vomen's Faculty Club. lVith this went
Hutwn (E. ~- · · ·· ·· ··· · · · ··· · 40,671.28
Sun Oil as.woa res ················ the text: ''Notwitbstandin .g the fact that he wa.s cJected by
Rants :\Del bro ······················
'k.eis:-
...... . ···············
37,26o.DO
184,224-83 ~ Democratic party, President Roosevelt has ... permitted
Utili · 27,o69-!» · egroes to come to the '\\Thite Howe banquet table and
ty c.ornpao•es and aSIOC"ia t.es •.•.•••••
•Jeepin \\lhite House beds ... the little dole which be g;ave
Tot.al ...................................... to the South will never permit him and Mrs. iroosevelt ro
~ut social equality in the South a, they have done in the
' orth and in Pennsylvania."
 1.,£A G 1J £ RS
I'll I.\ I' Rt,: i..1 o£R TY of '\;\'ash·
l ~ttt•1-. bt•ro,·c th. n ssul{is no,•s ,.11t £ the phoniest
ll ,111\t" I \ , t I.irk ( 'o11 . uncloubtcdlY_one _o anizations. Arnold, once
' .11It'<.' l\ I11. ' 11nII te , 1
t :01n1ni ~('. one of 1 ~. n 0os~ ,· . 1,,•:1g11c, 1 Jobby1ng o1g . consid e rable sun1s
r ltct-, atln1i11ed ti . tie l~•ader Jo1nte<1 "t 1~•ir'~ ,. 111,,n Y phot y been cxtra cung er a long
o t ht· i-.1(·c-h.1t . . . ~-H he \\'asres ~ or the So c.,,~ j,,gtoll ~-. r.: or Kirby, ha~ du\ous businessn1en ov phers
bt•in" I ,. •I' ltd t11~1H1 ·i11,, lit • . pons1blc fo1· . 11th ,._
o , ut 1evci· · . o c1at u re I care 1 " 11 ,11,,,.,vc1,1 ckcts of Cle than a fe,v stenogra •
hitn " to do th:i/'.~ ':h1te S1tpren1a cy i1· le cxplai11 1~ n1li0ii . he po qu iprnent 1·
1 f1t> II' t . 1 · no ,norc e I . s and su cker ists.
R~, ,. Cornier D · .-luse ,1· Iso 1·evc·,1
. s ...ou, • ..ds con~•etcnce
· 1,. 1
'- , . 1 "''t I h n1ac 11ne fi as the
en1ocrat' 1 . · ~ that J p,•11o<. .. u1iu1co grap A. ld operating rst
•ut~ ,n1.:1s, o 1110 , ·can
t11•0 of the l ibt•i·ty L • ic c 1:nrrnan, and p· ohn J~"'b ,v1l' '11 6 and 19· 9 s the .Axner1
• • e11 n-11e· b lCtre S ' •v ll •tween t 92 L gue and later a Th
ro11tr1bt1ted ct,: OOo . ·so s ro.1dest-1 . . du 1>01 .< • 'f!l,xp:iyers ea million dollars. e
~ 'f'<>• apiece v1nged 1~ A111cn c.111 collected aln1ost a " J A Arnold
t\ ruse t~stified ti to finance the S angels, l~1d
inforn,«t
G .
specifi;;:1 ~o bfar as he kne,,,, nei~1~
) a Ont the d. .
, the1f
·n llletth~.
er o the,
~ui:.ersLengue, ·ted in 1929 that one . .
~~r:ill' Ul ' Co1nn1itteerep~1 fl ence Congressional
.
legislauon,
eorg,a 11'on11111's Tf'orld 1su·1bntion of copi n ivas ·,~;·ates ostensibly to in u f making a living for himself
B) i\In rcli . es of th~ Or- f thepurpose o furth r
1 936, the Southern C but in fact or . with him." Caraway e
. 1rroup of associates . .
enough to buy full-page ad . . omnuccee was prospe nud a sn1aII c, ld' "League
., h d "nei'ther
a
consutut1on
H Ii . ' verus1ng s . ro11s reported that Arno s . . e t 'contributors.'" Among
era ' Tribune and o th er ne,vsp pace in the New l'orA
inent under the caption "Lib npers to run an advertise nor bylawsno~ membersh:, ::epof the Caraway investiga-
, erty must b h . Arnold'sconu·1butors at e .
su cll pledges are evaded .. Th o,v er head when . W L Mellon of Pittsburgh, the Van s,vermgen
President of violating hi. e text proceeded to accusethe uon were · · • 1 h' th
brothers,the estate of p. A. B. Widener of Pb1lade P ia, e
to pass the Guffey co~ obng; of office by ad~ising Congress
\VrigleyCompany, and the Insull interests . .
"doubts as to constitutionali .~ven though It might have "How business men of ordinary sagacity can be induced
s ty .
to contribute to Arnold's purposes is entirely inexplicable to
. am Jones, who ,vorked for a,vhile for the Southern Com
m1ttee, your committee," Cara,vay wrote. "He has had no training
. f couldn't s tan d th e bigotry . tack ta.ken by Muse and·
qu1t ~ ter a squabble. Kirby apparently could take almost nor experience either as an economist, a statistician, or a
anything. At th e height of his prominence as head of the tax expert that would fit him to be of service in any capacity
Southern Committ . ee, M aury Maverick, . a Texas Congress· in connection ,vith revenue legislation."
man at the tune, characterized him as "the trigger man of Even as early as 1918 a Senate committee investigating
special interests that destroyed the timber resources of the German, Russian and brewing propaganda found that
Arn.old,in association ·with Vance Muse and a Mrs. Darden,
people of Texas and Louisiana , .. an old bore ... who
had collected $250,000 to oppose legislative proposals of
doesn't control ten votes in the whole United States."
various kinds, including the Adamson eight -hour-day rail-
8 road bill.
Yet Arnold ,vas able to collect $45,000 in 1935, most of it
Anothe r benefic iary of the openhandedness of the Liberty
from Andrew W . Mellon, l rt!;ntl;edu Pont, several other
League group was J ames A. Arnold of the American Tax·
 E,RS
166 LE""c;tJ was
TH£ PRESSURE 10E1t'fY Company,
d p novs -r11E L h plate Glas_s l chairtnan-
u onts, Charles A l\t
. · unroe d pittsburg f nat1ona to
e..xccut1vcs, Parmelee p . an Paul s .,., is the d office o l sl1ot u P
R o~k efeller, Sr., and the rentice a . · rlatt interest Jy create . ·rnmediate y . ntl1s
Bal~ . son-1n-la,v of • Utility b,,sioess the ne'" . aniiauon l . e first fou1 tnO
This ,v~s revealed by lhe Black CWln ~ocomotive Jooh110, 1eeted to of the oig d et73,500 in th f loans [Torn
c . 0 me r, an -If h fortn o d
that Bainbridge Colby H omnuttee, Which1 lllpa11y, 11,e ,oc l e "ear l 9 3:> • ,vas in t e . 1 ded .A].fre
h ' a earst w · a so f for t i ' of this . ors inc ll
ad co-operated ,vith the L r1ter, and Bearst ~,ound $95,00~-A Jarge_par~cher large contribt;hiladelphia banker,
· ·
ga ruzat1on fr eague. Hearst •uniSe]f
ee time for sevent fi gave Arnold' of 19~ ·rn familY• lton yarnall, b y $ 1 ,ooo;
"Y , Y· ve radio b s or. iJ1ep1tca1 . ooo; Char E T. Stotes ur , E
ou use Poor's Manual ' f roadcasts
S or a sucker r . .s1oan,Jr., $1,d pe,v, $5,000; . •rent $1,000; Jol1n .
enator Lewis Schwellenbach of W hi ist, do you?"asked P r{owar A A,t,vater n. ' Corn·
the committee. as ngton, a memberof J
$5o0; . osevelt, $500; n.• . Gas Improvement
NicholasRo head of the United er Philadelphia bank·
Arnold replied by calling the BI k ·rronerman, ITToup of oth
. .. ac group " Zt • and a large o
committee but finally admitted tha h . a pole-<:at pan)', $1,000, I d been
Poor's, Thomas's Register, lists o/ Dee!~ his_namesfrom ·rt men- there 1a
crs and uu I y . ' rival on the scene, d Lib-
contributors and Republican party b crat1c ca1npaign Prior to Pitca1rn s ar with the newly forme
., mem ers and "wealth me negotiations for a_merger d Col William H. Stayton,
wo~en. At one time, the committee found, Arnold wire~ so L ncoln an · th" as
erty League between i_ . These came to no mg
~ discou~ag~d representative at West Palm Beach, Florida: secretaryof that orgamz.at1on. Ethe identity of his organ-
Keep digging, bound to reach pay-dirt." be J.ealous o . ·
Lincolnappeared to anxious to be 1dent1-
L .b League ,vas not
izationand the t erty Ch"ld
1 Labor .Amendment.
4 fiedchieRy'"ith a fight on tlle . . k it on was
The Sentinels' tirst activity after Pitcairn too Tax
The Sentinels of the Republic, another of the horsesin a cam ai against the "pink slip" clause of _t11eIncome
the Liberty League stable, ,vas originally organized in 1922 p gn . . fo nal incomes. Repeal
Law, providing for publ1ctty r perso f
in Boston, its primary object, according to its president, was won by flooding . Congress ,v1•th t e legrams · Therea ter,
1\lc:xander Lincoln of Boston, being "the preservation of the organization opposed the soo •a1security · b"ll 1 ,
the Wagner.
the fundanu:ntal principles of the Constitution, whereb)' a Act, the Guffey coal bill, and the holding company b_ill.
dual systcrn of Nationnl and State Govern111cnts was est~b- lts principal interest in 1935, ho,"ever, ,vas the preparauon
lished." 1~0 this end. up to 1935, the org:inirntion f-0ught~ie and exhibition in various parts of the country of a short film
<~hilll l.ahor 1\1ncndn1cnt. the Shepp:trd•TO" 'ner l\fatcriut)' lampooning the President and attacking the New Deal.
:\rt and the prop~·)s..11 to create a Fedcr~,1 dt•p;1rtn1cncof edu· Somemembers objected that the original ,,ersion of this film
l,\tion. lts inoo1nc up to th:1t tin1c h,\d :neragt'd :ibout $1i,<Klll went too fur in its caricature of tl1e President and criticism
,1 )t'.11-. 1,h:·1nhc1~hip'"-'S nt•,·er n1ore th.in :J,ooo. . of the Ne,v Deal 3 nd it ,<ms toned do,,'11 son1e,,•hat bef-ore
ln lt)lt>• R,1yn1ond l'itc:1hn of Phil,1dclphi:i, "•hos~ni,un its -relense.It had a previe"' sho"•ing at Palm Beach before an
168 "'ll'l''i LEAGUERS
THE p R.ESSUR 'f
aJ!. Llll"' financed frorn a special fund
audience ,vbicl1 . cl E Bovs
in uded Al o broa d casts were ·'buted .Among th ern were
and former Senator . Smith, ,vho a .-r} ese radi tnen contr1 . 11
at on f David Reed f pproved · • i. h about si1'tY L ter Arrnour, Chicago; Sewe
e o the Sentinels' me . o Pennsylvan. It heartily
he film et1no-s. . ia, Who , io w111c . J\l'lderson, C hicago·'B es
11 Muncie, Ind.; James F. Bell
. .T ,vas sho,vn tl1rou "' spoke . Chicago; G eorge
I\rt.hlll . A, 1·a . •E R. Crawford, McKeesport
tzauon also furnished ghout ilie count ;v1e 1Y, . Minneapo 15, • E.
1900 small papers th a canned editorial sery: The organ. {c,eneralrv{111 s, A B Dick Jr., Chicago; Thomas

I t seems to have backed C

roughout
t h
e country.
rv1ce t
o abo111
~in plate corn~any; f. R. R- D~nnelley 8c Co., publishers,
Donnelley,prestdent; . . u-einz Food Products; Albert D.
attempts to have "Co . ~ . Henry Breckinr·d 1 . erfiordThomas,
S. ne1nz, n d G
· . nsutuuonal D gc in 1· Chicago; i advertising, Chicago; Edwa~ .
pr1mar1es in 1936 Th . emocrat:s" ru , . i1s
1,asker,1,ord _8c f S dard Oil of Indiana, Chicago;
,vitll the suggestio~ of : ~~:unelsf at one time als: p•~the · E• T ·
they · pro essor w A ayed seubert, President o .d tant of Westinghouse Electric;
rgan1ze an attempt to repeal m ' . . vVilson • that
CJ O A.1-V . . Robertson,
. b h · pres1Aldenen B. Swift, Sv.rift 8c Co., Chicago;
.
ause
.. of the Constitution , su b Stltuttng. . e General \Velfare \Ve1r Pitts urg • d p The
as to pay the debts and to ro . some such language \\fro.' T. \,Vrigley, Jr.; and, of course, the u. onts.
the governmental fun . p vide funds for carrying organization,vas dominated by Chicago and m1dd~ewes~e~n
. " . cuons enumerated . on businessmen.Part of the money came from p~bl~~ uuh~y
tlon. Lincoln also -~:d h
........ e ,vould "l'k m tlte Constitu-
tution amended by re ealin . t ·e to see the Consti- executives,although in one broadcast Clark said, .We -~id
and had " . P_ g the Sixteenth Amendment., not receive a dollar in contributions from any public utility
great admirat:J.on for Go . company.We should immediately retum it had we received
agam· st Federal . vernor Talmadge's stand
gating the Se income • I . taxes ·". A t th e t:J.me • Black ,vas investi-
one."
,vi thout nones in April, 1936, Pitcairn was trying, A total of about $160,000 was collected for the radio fund.
. any great encouragement from his wealthy friends Clark said the broadcasts were for the purpose of clarifying
to raise $400 ,ooo, th e sum b e estunated . to be necessaryto' public opinion and that be was against "all bills to make
carry th e Sentinels' program through to November. the government maste r of the people." In one broadcast,
The Crusad ers, ongm · · all y organized in 1929 to fight for opposing inflation, all references to the bonus ,vere deleted
repeal of the Eighteenth Amendment was reorgaru·zed in lest they cost the Crusaders Bearst's support. On the whole
Illin 01·s in· 1933 to oppose "all forces 'destructive of sound the Crusaders ,vas an amateurish outfit. But its leaders knew
government." It had a board of trustees of fifteen men who enough to represent themselves as a nonpartisan, unbiased
set up a string of local organizations in the various states. group trying to present the facts, and to conceal the fact that
These were supposed to finance themselves and run their they ,vere almost entirely financed by big business and
own shows. The principal activity of the Crusaders after that public utilities .
was a series of eighty-seven radio broadcasts by National The Farmers' I ndependence Council was organized chiefly
Commander Fred G. Clark, opposing most of the legislative by Stanley F. Morse, a self-styled agricultural expert elll·
program of tlle Administration, including the holding corn· ployed by the Liberty League to write a cotton report. Its

pany bill, the TV A and the banking bill.

 171
170
L:E.AG u Ells also
l'HE l'Rli:SStJRE ll Llll£it-rY council are
0Ys
purpose ,vas to arouse f -ri!E
d be
h·nd
t
the
armers ag ·
AAA . Associated ,vith 11..- • a1nst the "t"'"a who stoo d farroers . h Sentinels
,v-1orse in ·t , • nny·· saJ'llemen he ;\ssoeiate crusading, t e £ the
Casement, a cattleman fr l s organization of the f tJie rt to t erusaders tellites o
k om Manh Were I) o • suppo re the 1· g the sa me
nown for his opposition to the far attan, Kansas, lvidan .,j,~ng cheYvie ·1 counse in ' bout the sa
wald, a sugar lobb . m program .K ely " ,vhet11erorthe counc:heir money froID a bjective of de•
Dr. E. V. Wil y1st and so.called beet-s~ llrt Grun.
cox, a superannuated . gar expert guardingieague all got had the co!lllllon o med necessary .
Gentleman and A l\.f L . Writer for C • Liberty interests- Theby whatever means sede 11 but wiped
. .' · • oom1s, connected . <>untry ropertY ,., Deal y fa'lure an a h
Dairy Institute . The Council's W h" With the National p 0 in" the i~e,., 6 indicated i d that over t e
of the Liberty League and most afs_ington office Wasthat str Y " . of 193
The elecuon th election of 19 3
s
showe .
ts and their gang
£ b o its telegram
or y tl1e League . Its money, a total of $ s were paid chelllout. But e ganda o f t he du P on . t first seeroe d . It
the packers, the W ilson P acking C 25,000, came from ull the propa . ffectual as 1 d t
longp d not been as ine t of the voters an o
th d
s
e u Ponts, who gave 5 000 S ,.,,. S
, •
ompany and Swift & Co
. ,vi . weuson sci
.
f
•· probablyha. b"t to the befuddlemen
wealthy Texas cattle-ranching family and di ' on o a contn·buted its 1
N · al • a rector of the chereaction.
auon Ci ty Bank, W. W. Aldrich of the Chase National
Bank, who gave $500, Cornelius N . Bliss of the Bankers
Trust Co., who put up $200, and others just about as closely
associated ,vith farming.
The Council tried to reach leaders of Young Republican
clubs in the farm states, sent out a few anti-1\'ew Deal re-
leases to farmers and financed a fe,v radio addresses. A
meet i ng conducted by the organization at Indianapolis in
February, 1936, received nation-,vide publicity but was at-
tended by only twenty-five or thirty persons, about a fourth
of whom, according to the president of tbe Indiana Farm
Bureau, were Bureau representatives, "sitting in to see what
wu taking place." The Morse organi1.ation also sought to
get its ideas incorporated in tbe Republican party platform
of 1936. . d
For Mor~, a jump from the Council to the Associate
Farrner!, which · he worked for later, was no more than b
ltY6ical."I'hf"O,unr.il had tTied to fornent farm di5'C-On~ent hy
f;,irly legirirnau- mean,. ~I he A$~iated FaTmers ia doing t e
,ame tJnng. by lawJes, method,. Ev,ilence
. • that ,omc
. d'· ,cateq
1n
 1
us'' 5ucAR r-rEN 73
••ri,;RNtCIO ..,.., entarily gets more square
010
c1,ed,a11d 1
·£ sollleone .,.,
·t Illakes no great difference to
th
e
si:ret . d .
. c1,est11aJ1 I1e deserves, l
d reason is that the sugar 1n ustry 1s
1n
onsu1ner - '[he secon esenting a single . front ,v h enever 1t ·
CHAPTER. 11 c t a un•fied ,vhO • 1e pr!{ill. on the contrary, the .10d ustry
1
1
rolls up W .•Cap1W
00
1,,; •tself so many purple hates and ancient .
''P ernicious'' S noLlrls
• heS w1uun
. f Iaction is in most cases, impossible. It has
S~cAR lobbyists ugarMen fears.that funity o in common,
v goals ' no communal bones to gna,v
• 1Y e,In general however, 1t
relati"e · the o ffshore 1n
· 1s · dustry
Srruserabl e c 1·imate areThas much a part f
ecretary Ickes, ,.,~ e :resident call o Washington . at leisure.
· t the continental' .industry, W1th
. the latter having . the
no better th " rds falling h. ed them " . as Its agains
tremendousadvantage of representation in Congress and
Cordell an audacious " 1_m
for the mome perrucious."
lobb . Hull returned fr' wh~ch is far below :.t, coulddo votingfarmers and ,..,orkers to promote its cause. As a result,
yists were "ha . om Lima to is standard ibe domestic industry has ganged up on the little bro'-\'ll
dyn · ng1ng t complain th ·
. arrute his trade o our Banks" at sugar brothersand denied them a decent break.
investigation. agreements program Hand attempting to The complexity of sugar lobbying arises out of the com-
0 . e ,va d
bviously an nte a Senate plexityof the industry. Sources of the American sugar supply
official spanki y group of lobbyists me .. includeCuba, the Philippines, Hawaii, Puerto Rico, Louisi-
hell, and ngs must have a de r1t1ng these and other ana, Florida, the beet-producing states of the West, and
th no one denies th monstrated ability to .
e sugar ind at talent in th raise dozensof assorted foreign countries. Because the conditions
apply it y ustry. They know th
. et, for all th .
e e~trepreneurs of
e technique and th
P:
of 0 duction vary in each area, and because competition in
and e1r prodi • ' ey theindustry is di st·mgu1s . h e d by its
. p1raucal
. . tendencies
. num-
• muscle, relatively littl . g1ous expenditure of sweat
b. erless
d anim osiues
· · h ave been created. The entire domestic '
~ry s greatest lobbying a h _e is accomplished, and the indus-
1n .,.
ustry- th at is,
• the portion of the industry protected by the
1ts ,vorst defeats. Thee 1 i~vements have ultimately become
on su gar ,vr1tten . tanb,c and otller d ev1ces-looks
C . on Cuba with bloodshot eyes.
fr into c th
ass1c exampl e was the rate of duty
ven f
om protecting do . e Ha,vley-Smoot Tariff Act. Far u a nurses h er own h ates, but saves most of her tropical
ductio
om or . the Ph·r1 1pp1nes
· because she fears increasing pro•
stimulating prod ~e st ~c producers, it had the effect of
aga· n 10 those Islands. Seaboard cane-sugar refiners inveigh
rui nmg . prices and dri m
ucuon . the Ph 1-i1ppine
· Islands, thereby
inst the re fin 1·ng of sugar in Hawaii and Puerto Rico.
Flo'"d
producers into th vmg bo th Cuba and the domestic agr" a and L ows1ana fail to see eye to eye, except that both
Th e poorhouse ··
. e reason for the r .. Theebth ey should be permitted to increase their production.
is_ that the Roosevelt ~=~t. Im~tence of the sugar lobby ca e. eet•sugar 1n · d ustry, rooted in the Western States, has
n1ng was wise lllStfaUon from the very begin· .. rr1ed a cl·up on its. shoulder for forty years. Ha,van.. ,vants
bed ,rith a single enough
blank to tuck th e industry
. into a narrow equality" vvi.th the mainland producers, constantly pro-
et. In five years that blanket hasn't
17a
 175
1 i4 s" suGJ\~ ?-!£1'1 .
I • TH£ PR£ssu ll £1li- 1c10U . d States late 1n
c :i1n1s herself a ... £ llovs
·· r . the lJ n1te
too . n integ-raI" the ,·isit paid _to Cuba's dictator. Return·
• l\"tth Pu ert o R"1co oI · part of th e U · ts of • nausta, •d Colonel
0
.-\ directory f . l s all Yery tn Ill ted St.a ,-:i aspec el fulgeno_ •nino- ,vith p r1 e,
th o sugar Ora,,..,; . essy and . tes. So opt'S b}"coloJ'l his tunic stral o b d been r eached be-
ev represent, ,vh o--uzauons. in lln1ntell;_ . 193 ,1 ,,al)a, irreeJilent a 1 the
like this· at they ""ant and ten:ns of th"'l>ent . to ,,a d that an a., d that as a resu t
' 'ha t th
1 e ar.... ,,,g noullce d Cuba, an d
•
ey er ""
.,,et,reads Jlllust3 311, r~ited scateS an
uie u.,, uld be st1
·u furth er reduce. ,.
,,,een Cuban sugar ,vo ff olitically in Bausta s o\\tll
du1Yon t was hot stu P f State to the
2 'fbat statemen . l d the Department o .
d but it chil e ,.... d Agreements Act requires
Cuba·. Amer1can· ·
from an t1
stoma ch
s get more s
tiacllyar '
chilled it becaus e the J. ra .e t an agreement must b e
of Cub y o 1e~ source, and the ~1~~ from Cubathan
b<)Jle. • • n to negoua e
tbatnotice oE U1t_eut1:oducers before any horse-trades are
. an sugar interests is Dr O ~s ington ,vatchd
sent1ng tl1e Social and E : scar Diaz Albertini og gil'ento domestic ~thi- in agonized embarrassment and
has n conom1c Union of C ' repre. colllPIeted. After ,vr1 fng B tista 's diplomauc . b oner, the
o• votes on Capitol H"ll uba. Since Cuba
I , Dr Albe f ., auger for half a day . ad ter
. atice to the domestic producers.
ence IS some\vhat circumscribed . b r ini s sphere of inBu- S Department issue its no .h
f~l ally in ilie Cuban Ambass~d ut he has ahvays a power- s:Oer Welles denied-as vigorously as he could \'llt out
d1_rectly to the Department of s::e ':~o can make known callin"Batista a liar-that any agreement had been rea':1ed
wishes. And what C b 1
u a a ,vays want ·
Cuban ,vants and orth:t any commitments bad been made by the lJruted
a high price and th s is a lo,v rate of tariff
• e assurance that th I ' States.
exports to ilie Unit . e vo ume of her sugar But that l',asn't enough. Batista's remark, plus some equ_ally
the co ti . ed States ,vill not be reduced to satisfy stupid comment by the Cuban Ambassador to the Uruted
, dn n~ing demands of domestic areas for the right to
States,was sufficient to set into full cry the traditional ene-
expan their production.
miesof trade agreements. Here, they argued, was positive
Under the Ne, v D ea l , c u b a has fared better than well.
evidencethat American producers were being sold down
Th e volume of her exports to the United . States once threat•
theriver whenever it pleased the State Department to do so.
ened by increasing production in the Philippi~es, has been
Finally, after the domestic sugar producers had been given
reStored ilirough tl1e operation of quota Ja,\fs, and there
~-public opportunity to denounce tl1e proposed revision as
have been two drastic reductions in the duty . Cuba's income tttle less than downright treason, Mr. Hull appeared before
from sugar, as a result, has almost doubled in the last five tbe Senate Finance Committee at hearings on a resolution
years, much to tl1e delight of ilie plush-lined Americanos asking for an investigation of circumstances surrounding
who control by far the laro-est part of tlle Cuban sugar preliminary negotiations for an agreement .
industry. b . Unexpectedly, Hull did more than defend the prelim-
Bu t Cuban ,vants are never stilled. T he most recent nrant inary negotiations and the integrity of his office-he lashed
was a further concession in the tariff, and ilie pressure _to out ,vith an indictment of all sugar and tariff lobbies opposed
get iliat reduction pu t the finishing touches on the comic·
 1 77
'rllE
to the tr-td, PR:tssuR.E no
• c aoT , "s . f the Association and its president is
thouu 1 0 ' ecn1cnt .
"'ll L1t:tl\\ 'as11't . p1ogra1n. 0 . ' • 1rac\l 't o . . l d d
and that nig-111ti <)llll(' <'rirkct 01 1 l1nc and all 1 .r~i$L111'' • • , Nebraska farn1er. R chg1ous y cvote
l <'par • I
U , '
<'rt Suga, .. ,v ·
\t')' seald , I
t:(
.
thl'tr pill
' obb ,
L of th<•S )11ti
111lcs
·11 i\ I · Rr 'll
' lll ), d· chc 111arblc halls of the II1ll •
" 'It,
~cfincrs, bc.•ct~ugu~t1' , the possible e:-..~-::•s (, · •, c111~.1•• ht' 111o s '
~virh Ll.'a1-sc1:r~tary, , ,,~ •
I r )' Aud he gets rcsu l ts.
11 ~•tih• \e enc t~•. · Hct•t
s . . .
let I fro11t ol' t I,c . i rl p1 ochtl'l'rs (>• ·est11t
' . • ti pt H>11of <::1n . ;u<''h: 111 11~-nrAssor1auon, ,,,h1ch has d<>nc
fact th,\t the i nch1~\rus'. ry. ' l'h c ha~is ot~crl1~1os1 POte11tsu~1r 'I"'l)1 11lt'<15, t,I Idts st(lnd in ,va slun . gton for n1ore than
1
states fro1n l\I . I . • }' is scattered . us st 1\•11gtl _J)oht. i,uiintss .al. t 1nllc"cs
u.: o dint its exis. t ence .1s ,1ust1fied
. . on gro unds
~
b ic ngnn to C I' o, c.•rsixt• , ' I is th 11\'t'IIIY)'( OIs, e, . • • • • • •
eets nrc as i1n .a tfornin a l . t:ln or eigl lobbying Tnsutuuonal advertising and pobhc1t}',
Th b ' portnnt as cott ' ' n< th :n in . ltee11 01htl' 1
Irn1:ind
•.,Irs .
researc h, co-opcrauve •
elfol't to develop 1m-
bill e e: t-s~tgar industry con _to l\Iississippi. so111e ar~as $1a11s,1, • •
provedstrains o[ beet see~ and ~ctter f-arn1 1nach111e1:y ~re
. s, and u1 tts inatur ut Its political t
prised to find th e !cars the industr . eeth on tariff ~dvnnced in support oE this thesis. Beca use the Assoc1at1on
• at tariff Y 1s con
raging qu estion . s are becomin stnntly sur. bearst.he scars of many battles , it is inclined to lo ok upon
,vh etl 1n the sugar ind g outinoded Tl ,he \•Vashin gton scene ,vith less passion than son1e others.
. 1er the tariff is hi ustry at the mom ·. te
industry • but h ow muchgh enough to prot ect. the be ent is not Headof its Washington office is Neil Kelly, able one-time
land of the U . sugar shall be r efin et-sugar newspaperman.
The b rute~ States, how much in ~d on the main- The Farmers and Manufacturers Beet Sugar Association,
eet-sugar industr I the in suJar areas
Nat' ional Beet Growers' YAsas three 1 · divisions: (a) The · more recently organized and geograp l1ically less extensive
. . ma1or
than the United States Beet Sugar Association, is more vocal
farmers in the Weste S sociat1on, ivhose members are
S A rn tates· (b) th U . ~an_many of its contemporaries. Its Washin gton representa -
ugar ssociation an • ' . e n1ted States Beet
O uve is Clarence J. Bourg, lawyer and ardent Legionnai re.
operating west of ,th M~g~n~zatton of beet-sugar processors
eB 1ssiss1ppi R iver, · Cane Sugar Refiners: Cane refiners, marketing about 70
an Manufacture an d (c) the Farmers
d rs eet Sugar A . . per_cent of all sugar consumed in the United States, are
represented both f ssociauon, in ,vhich are . the .,-ants o f th e industry. Their particular debating
Indiana and w· ar~ers and processors of Michi gan Ohio easily .,; .
1scons1n. ' ' sRocifietyand lobbying instrument is the United States Cane
The National We ners . Associauon.
· · T hey maintain no permanent staff in
Washington offi Beet G ~Owers Assooation. maintains no
~hmgton, preferring to vie,v the Capital from the relative
Capital r • ces, but 1ts re presentauves
· • the
appear 111 ~ m of Manhattan when sugar legislation is not actuall y
battle is' IVIng
s ffi . on slende r per d'iems, whenever the smoke of
in. the. making. When those occasions do arise, however, they
States Thu_ ciently heavy to be wafted out to the Plains
h' ·h eir . goal is Simp
· 1e and understandable: they ,vant P11de mto
. W ash'1ngton 1n • squads of eight
• to preach the short
an Slmple gospel: all sugar destined for the United States
If
as thxg a pnce for th eir· b eets as they can contrive to get. ;arket should be refined witlun the continental United
th . ey can't get it from the processors to ,vhoro they sell
c::e.s. It was this group, working with organized labor and
F err
d ralcrop ' they have no Ob'1ect1on · to getting it froJD t he tmental beet and cane produc ers, that ,von the gaudiest
e e government.
 1 79
" sucAR r.1r::N
••r£1ll'l1C10US
. .
ill be surpris ing .
if, eventua 11y,
• I •ind iL ,v
,, •.\l\{S 1 • l
,, .. ,11,1 • • • Clar-
1,,11· , net 11, • ·ani· ans
i n Washington 1s
l(l<' •" 1 ., ( the Lotus1, '
,h(' i••«:n1.,1i, i: o I . -p1·c•ents the Farmers and l\fanu-
JtcP" •I10 ri so 1<.: •
i;,n1ri;, " . •
tit•• .I• Su ,-ar r\.ssociauon. . .
~ 13.ic:t• g .
. ,111..-1 t· producers have no assoaauo11, no
rt
t·1'f1.-nd11: ' or1da. ' ~ug-a
. no tnarching club. An d none is.
n~ucuce,
l<'k1,1n••11• n 0 1_ ' 'd roducers could meet in a telephone
\«'1-1
( r II Ftori• a
'"I· t> •1•
P Eor turning around. Voice· an d
1 d sull lea,e r 0001 .
i-,..1v1h·1~ ,he industr)' is Clarence Bitting, president . of ~,e
u,>11tfo S <!:11"Corpor-ation, so extravagant a nauonalist
r mt.:d States u~ ch d
i!ut hi$ business letters are "•-ricten o~ squares of star e
ro«Ol'·This contribution to the sol u uon of the share_ crop-
.. probleiw is t\'pical of ~fr. Bitting·s flaming devouon to
~-dung .-\nlerican. He abhors Cuba, the P hilippines and
~ other competing areas. His intellectual accomplish-
ments include the authorship of a series of green-backed
p.llllphletsdesigned to prove it's just damned nonsense more
~~ isn't produced in Florida.
Cnited States Su..,aa.rproduces go per cent of all Florida's
SS"'lIand owns or controls thousands of acres of muck land
~ Lake Okeechobee. I;nder the e....isting Sugar •.\ct all
~ land can·L be planted to cane, which is sufficient e.~lana -
con fur Florida's shrill demand for a larger quota.
_\Ir
- · B-unng
· mostantly extOls his company's low prodnc-
~ oosts and its high wage rates. (The minimum 11,-agefor
- nine-bow- day is $1.6o for men and t:hirtr ants less if you
h.ppeu to be a woman.) ~Ir- Bitting preaches against go,·-
Cwcuru, rorurol of the su.,aar industry and limitation of
!11"~ but there is so far no record of the corporation
~ Rfnsed to a<:cept benefit payments, which in some •
Tfars h;n-e approached a million dollars- Mr. Bitting likes
to ha-.·c people visit the CXJ1Dpanys mills at CJ.ewisWD-
..
Mi"N
I 1-\1I , , S lJ (; /\ ll ·
1 111, 1"'1 1, c1011 s 11ouolu) u.
" ,Nll\llll• '. ll11y~ •• ,, " it r,i 1 , .• ,1 l•111d to ..
,•,p1·1111lh 111·11ph•
li,1111 \\ ' I , I C 111,u ' r I I awa1 1
,l~ llll••11 ·1ion I•• c,111 I , . cly a ca d CI. ni c • 1.or • l
Nll,11Il'i I 111 111,tl-l' 1h1• t n Ill , II 1111
,)•
11111
1 lp ol I h , . L111· 1 1
·1 ro1111ct . . n o l cu t II . d she obv ious y
\I\\ II t'\.(11'1 1/ll\ 1l1e·11 I \V iii 1(1 11·,l\11 l\• ('1•1 II i,11 . JOJlll IS ' lI •ystCll1all
1lt1 •1t•''
S llll t I' ,11 ,, on ,111 sI ··c·,n u1l'1 s . I th at of her
Ii1• p,tld lor tlt1•111 , 1~1111 ,vhy iii, , t·i-
1ll)l(
,11 lhri1 ' . 1v11Ct' I , j\1nCI I ' f se<l wit 1
, ' ' i' l' IIS\•$
J11s1~ . J 1,y I ic be con u . Adherence
I flus, l , 111• 111 l!)uH •I , , · 1•111 't , llo1c~•'' 1tcr ~u11us 10 ,c Ph ilippines.
,> ' !I S 1111 y SIX(l''
Io,1d1·d up in \Vnsl1i111•1011,vi1l1 ,: .. en car sp1•ria1 11·11· i '-su' t wnnt . 1,nrt icu lar ly ti .. . to a head -on clash
i101. ci11hbOI s, I I Iawauans in . re
" J " <><'11,llol's R. • 11 W1 J'11filic ,1 !". brought t 1c d yards o£ le1s we
,1 lllst ul c.:ove1n111t'lll oil' ·. I ·" .. , l')l1'l•s1• 111a1iv.. •I . os1uon . 937 an
fl ·I tct,t -~ for - ts a11t1 io Ll11 s p. I refiners u1 1 •
' t>ltt a, ult cxpc11st·st>aid 'I'I 1 .111. .'1 \vcck's j1111k, • 1 111 :unlanc · battle. · W h
II • 1;1 · , · c v 1u111011s , . et lo w11' . the ensuing .. ar in dustry in as -
IC Ol id,1 Chantl,cr c•f C • were tssu"cl ,.
• 01111ncrcc I• ' "l' shreddedin ·vc of the I-Jawa11an ~ug al is Ernest W.
sound orderly and Chr1·s1. . • w llclt n1adc thi Rcprescntat1 .. . terests in gen er ,
inn, and tf the iti ngs d f Hawauan in ..
a son1e,vha t lc11gth y stop nt CJ . nerary included ingto»,an o ion manager in Hawa11. .
.. . ' ew1ston- ,vell, doi , ..
lo Calt£orn1a wa1it to sec I Iol i I? 1 l all v1s 11ors Greene , once a plantat l'tical sense Puerto Rico is an ~sland
ywooc The guc r PuertoRico: In a po i .. d the Philippines. It is not
p art y was never made public probabl b st ist of the
• ' Y ccausc W I · . b t een Hawaii an d
nc,vspapcrs wer e unanimou s 1·n 'bb' as nngton lying midway e ·w . S nor yet an in corporate
. r1 1ng the pro· . f the United tates da
s1ona lly, however, a familiar face appeared i'n Jetlct.0 cca. a possessiono . r. al halnvay house come discor nt
•
p1clurcs o ( t Iie expedition and there . 1e news- territory. Out of this po iuc_ . l t' calls for Statehood.
• 1s every reason tO cries One of the local pol1t1ca par ies
assume, on lhe basis of the photographic evidence, that some Anoilier-much to the annoyance of tl1e wealthy suga r pro-
members of the party spent part of their time at least an ducersof the island-demands complete i nd epe nd ence fro~
a rm's length away from a jug. the United States even though freedom means the 105:5 °
Mr. Bitting 's representative in Wa shington is Josiah Ferris, duty-free markets on the mainland. Right-thinkin g nauv~s,
at one time a secretary to Senator Trammell of Florida. and tliose right-thinking Americans who have money in-
l-Iawaii: Hawaii's principal business is not slick sun-tanned vestedin Puerto Rican industries, probably are pretty well
curves, but sugar. Almost since the day the missionaries car· satisfied with things as they are.
ried to the Islands the knowledge of religion and work, As in Ha,vaii, the production of sugar in Pu erto Rico is
sugar has been to Hawaii what Ford is to Detroit. So efficient largely big business and corporate agriculture. Eight cor-
has the business become that Hawaii today produces more porations produce about two-fifths of all the cane on the
sugar to the acre than any other area supplying the American island and manufacture about two-thirds of its sugar. Some-
market. Sugar in Hawaii is big business and the foundation thing less than sixty producers operate plantations of more
of the not inconsiderable fortunes of the first fanli·1· ies of than 500 acres in extent-this in spite of the fact that since
1 0
the Islands. 9° the so-called "Five Hundred Acre Law" has been in
The one thing Hawaiians won't let non-Hawaiians e~er effect.This law, intend ed to encourage the holding of small
forget is that Hawaii is an incorporated territory, "an_ 1~· tr~cts of land by individual farmers, provides among other
tegral part of the United States" even though there 1511 t
l th1ngs tliat no agricultural corporation shall own more than

l
 J'VlEN
THE PR:tss .. suc/\R
500 acres. If the law h
URE ll
oys , , p£1l f'I J
cious • oE reactionary
D o
em -
son is probably th
between the legal mean;-
as never been full
at someb d Y effe ·
o y found a Worldct1fve,the r...
I d c1ub,
,,..fl Jslafl fishing esta
.. ,zat1on
an or ga ,...
blishrnent on
.
an 1slan
h Club has had the
d ·111

·=•gs of "o . h ve a . 11
B
enefit payments to th l Wn1ug" and "
o cliff ..,.
erenec JeJ{erov\ifbo a
.
At various
tunes, t e
.dent and pract1 ca Y
o-:it.5 ea}c.eBaY• . . 11 the Pres1
run well into six fio-u e arger producers cfontroUing• • c11esaP f enterta1n1 g ber of Congress.
o res, some f th o th . ·
ooo mark. Under th . o em cro,vding th e l.llilllQ (listioctiolloth pernocratic roexn . us elements of the
. . e circumstan . e$ •or y
ea11 of the var10 f
pns1ng that the big d ces, it is not . i,00o, . everY s . No catalogue . h t at least a sidelong re er·
. .
La un intensity And th l pro ucers Iov th entirely tasses. wit ou
e e United Sta sur. J\ Io is comp 1ete . . l Most importa11t
· e ess the h tes • industrY deal 111mo asses .
dred Acre La,v the ha . y ear about the F· \11th sugarto the gentlexnen ''.'ho American Molasses Company
p . . ppier they are. ive l-lun.
ue1to Ricans are band d ence . the business is the . . . of having sheltered
Su p od e together in the Ass . factorln .ch has the distmctton . " .
gar
• J• r ucers of Puerto R"lCO. Th eir. . OC1ation of f Ne'" York, wh1 bers of the Presidenual bram
'\ as 11ngton is fames A
• ·
n•-1.
1 '-"-ev one of th fo
iepresentatire .
tn
o
at various umes
. three mero
T ·er president of the company
and
menc of •.\griculture men " 'ho ,h, . r e rtner Depan. tn1st"-Charles \It,/. auss10,Hull· the handsome Rex.ford G.
:\. odd . a, e LOUnda pla .
• t umes, Pre,, • Savov , once a la,Yyer ~ th ce in sugar . reputed friend of Secre;:y artm:nt of Agriculture to take a
rcp~er1tcd ,-arious Puerto R. . or e AA.A,has Tuvwell, \1•ho left the p . d of it and went to work
•. . 1can interests. "' any but soon ure
P'ulipp111es: Philippine SU!!ar producers di - I job in the comp ardia of Nevi York; and A. A.
for ~fayor Fiorello H. La Gu
of .tngina "·l1ene,·er the ,,-ord ':.independence· •~~-ay S}~ptoms
:.lftd [o 11, mennoned- Berle,Jr.
• r ~ reason. Independence, sooner or later, means
tlte 1n1pos1uon of a tariff :igai1isc Philippine su!!:lr and the That then is the roster of th e sugar gr
oups '"hich find it
1 bb.
~dual e, apor:ition of the lush profits 'l\'hich tlte Filipiuo • ' . · in '\Vashington o tes.
necessaryor ,\!orth '"hile to mainta .
producers ha,e piled up wider the protecti\ ·e tariff system. · ba, ·en t
The lobbyists themselves, ,llith a fe,\T excepttons , f
'\'hat the Philippines \\-ant is "equality" of treatment with . . . talk themselves out o
enouah personal pol1ncal presuge to
all otl1er .-unerican sugar-producing areas as long as Old " for parking overtime. They cons1·der themselYes on 1V
a ticket
l'°;lot: fi.1ps abo,e tl1e shoeless inhabir.:uu:s of cJ1eIslands. So reeds in the ,,-ind and ears to the ground. They seotlthout
br the, ha,e done prett, "·ell. · · ·pals and en
the uew-sof impending disaster to th err prina th
In ,,ramington. the Filipino producers support an office a\\.ut the development of "spantaneous•· proteSrs from _e
. . al s..-.:tem but It
of the Philippine Sug:ir .\.ssoci:ition :ind aJso retain Fortner grassroots. It may not be a subtle or origin ,- ·
: nator Harr, B. Ha\\·es. e-xpert on fish. d~. guns and Jts!t neYetthelessseems to ,.,,ork.
Jaxnes.. It ,,-:is the Sen:itor ,,·ho. "·ith the eHecti\-e help of
h;1lt a dozen furm lobbies. suc-reroed in pushing through the 3
first Philippine Independence bill. His connection ,i-ith the • • gar fight in Congress
The most recent throat-shtung 511~ bli hed
Philippine Sugar ..-\ssociation became effectiye shortly 3: trol oricrinallv esta s
ca.men,,0 years ago '" hen sugar con • o·
his retiremei1t from the Senate. He is a member of
 ,. stJGAR r,tEN
Ill •I j ,.,. F l' ~ 1tssl' "
••p-e:1tN1c1ous
'
.._\C' ,\l\~'
-<1..,t
(""'
\~ l \
1'•
•
S
" & llO\ · id not counte n ance. E ,en ,
Jnsun .<'nt ~ K l , ll\end . ,,•hich they cou I ld b) ' the House Com·
. <'t. ('an\e n1ent to I
S( h <'lll<' of thin . up for ~n t \e .-\g.icttl . iJ13uon b"ll \~·ere 1e th
<fr;cr11111 .arings on the 1 l v\Test Acting Secretary of e
light .. u1d ,\·hat~e1t \~'as. no n1ore :tment. In th~tal -¼
tJefore ic, Ao-ticul cut·e, Char es l bbyist , himself, chi'd e d M r.
the fact that the Prr ~gtltty it finally P<>~ant than anCosni ic 111iLlee on , d"'sornething of a o
and es1dent attatnect all
. au assorted lo ' son James, thr resulted r.. ti 1111er1 an
·or . . n·
the prov1s10 • tl and
tn the scum t of lesser official ee Cabinet "llllJ . Jtace abOUt nt has taken cons1sten Y
\\ "The
a • pos1uon . . this. Deparune hi f me .. he ,~ote to Secretary
l1ad as mu~- s!o. the sugar indus trfry finally took aoflicer1 has1ze at t s i • . . h
Balak! 1gn1ficauce and dr y, ho,vever, th hand i~ishesto re-elllP l of f{av.raii are c1t1zens of t e
ava and Gett ysbur . . ama as a comb· e _battle ". that the peop e
\\faUace, is . h fullest sense of the word, and that ~y
unexpected. g. Like Gettysbu . lllationof United States in t e f them in legislation is unjust
Th rg, It was h
e thing started off mil w oily . . •natory
d1scr11:J1J . treatment. fically
o their sugar plant ers are en-
1937, issued a scholar! dly. Secretary Wallace . d unjusufiab 1e; spec1 ,
mended Y press release · . ' early111 a~ the consideration tha t is accorded the beet sugar
enactment of m ,vh1ch h utled to . h. or the cane gro,¥ers of
rating quotas and tax!e:;nent ~ugar legislation einr:;m- growers of Colo:a_do or ~~c igan,
payments to farmers s· making provision for be po.fi Floridaand Lou1s1ana. • • ·
th . · ix weeks lat th ne t That was enough to light the fuse. Refiners and repre-
.. e picture with a message to Con er e ~resident entered sentativesof refinery labor came to Washington in droves.
enactment of a suga gress which suggestedth They appeared before the House Committee to insist t_hat
r quota system d · e
PIements ." On the f . an its necessarycom- the refining industry be not surrendered to "cheap , tropical
o 11owmg day R .
ones, chairman of th H , epresentauve Marvin labor." Labor votes in the House ,vere lined up solidly, and
J e ouse Commit
and Senators Alva Ad tee on Agriculture, \Villiam Green, president of the American Federation of
ing jointly, introduced ~ms :ind Joseph O'Mahoney, act- Labor, ,vas finally persuaded to address a bull to Repre-
bills writt . th identical sugar control bills. These
sentative Jones in which he defended the rights of the
no serio ' end m e Departm ent Of Agriculture, ca11edfor
(Continental) American working man and generally ex.tolled
- us epartures from the principles of the Jones·
th e glories of the (Continental) American eagle. Ernest
Cood stigan . Amendm ent. Quotas were assigned to all areas of
Gruening, Director of Territories and Insular Affairs in the
~T b uctJ.;n, but in the cases of Hatvaii, Pue rto Rico, and
D:partment of the Interior, appeared before the House Com-
u a O ! a small fraction of the quota could be brought nuttee to deliver a sharp protest. "The bill," he said, "per-
to the mainland
frankl . m· th e i:01m
" o £ refined sugar. This . proviSJon
.. ,
petuates a new geography . It creates ttvo kinds of territory
Y mtended to protect the continental refiners and ! 0 r America. It creates a continental and an off-shore Amer•
ass:!s.coa1-ee
2 them a source of raw materials caused no serious 1~· • .. We think it just as unwarranted to make this
ob" . . ,
~ecnao when u was written into the Jones-C,osngan division as to make a similar division based on any physical
Amendmenr in 1934- Three vears
and . Jater, holll·ever , HawaiiaJ:IS or historical.factor, such as the Mississippi River , for instance,
. Puen:o Ricam ca,oe to the ooodwion that anyfullita- and to say that Americans living ,vest of that river are
ocm on their right to rcfinr mg:ar on the hkods wasa

r
 r.{EN
186 ,, 5 oc;A-Jl refiners,
TliE PR.ESStJR.e Boys roos he cane
entitled to some kind of considerat" •pi;itl'l1c . tllonopolists, t selves illustrat~s
. ion and Am . aJlU
facwr1ng
nopo
ly for them
. quo ta system in
1t to another kind, or to base such d" . . er1cans11.ast
C ouPof IllIegalized mo ust face in a which contro 1
.
onunenta1 . .
D1v1de, or the Mason and tscrun
n· ton on lor
1nat" Uttlegr ding a C ngress tll . of wealth
n1 kn Jllan tbat O uons . . ,.
o Y ow one kind . of America W ll,on Line. • .. \v 1•1e
. . . . . . e can reco . e ind~ifficulries rporate a~grel~e of our c1t1zen: got clogged
nvo _class1ficat1ons, domestic and foreign .., &n12e onJy c.he ~ith co daily i the I-1ous , of
Fmally the Committee on Agriculture . dealing i "tiesof the reported to th "little group
D epar t ment o f Agr1culture
. thc thenecc: having b~en Meantime, e Ickes with the
to snatch back t1 Permitted
b"JJ
1 1he b ies corntIUtte~-ts" had retorted to ar industry of
ommendat1ons • and suggestions." It came back e• 1 h for" rec. . the Ru onopol1s lied the sug . hly
.
of time, thoroughly redrafted and with ,the m t e- fulln
. _ess ,n facturingrn families contro Rico had h1g
· la • 11m1ta11on rnanu five · Puerto 1 tter
on 1nsu r refining ~tricken out. Then organized labor ..ternentthat the industry in elt addressed a e f
s..- d that Roosev · n o
turned on the heat 1n every conceivable form, enlisting Hawaiian. dencies. James . with a suggest10
the support of Continental sugar producers ,vho ,vantedthe monopolistic ten in which he said, that the cane re-
bill passed and weren't particularly interested in the subtleties w Houseleadersdsomething really ne'".'•th less than 14,000
dis overe · w1
of insular discrimination. The subcommittee finally restored having c. f few corporations, t"me the sugar
finers"consist o a 1 t the present 1
the limitation on Puerto Rican and Hawaiian refining, es ,vhich contro a "
reduced the Cuban refined quota, and, ,vith a sigh of relief, ::pppl;:£•85,000,000Americ~-the House felt that Jimmyt
reported the bill to the full committee. That committee
But most of t h e members h 01.had started, an d they weren b"ll
toasted over a political grill for nearly t,vo months before . seat aft er the s ow b 's strength force d the I
got into his
the bill was blasted out on the floor of the I-louse. Mean- interestedin his . opinio~s-
· · La ord the limitation on ins · ular
time, Secretary Hull publicly pleaded the case for Cu.ba. out of the Rules Committee an l f Marvin Jones and
"Certainly," he said, "there is no warrant for a reduction . •
relining,vas retained despi et the p eas o
in the amount of direct consumption sugar allowed Cuba the majorityleader, Sam Rayburn. Secretary Hull once
under existing legislation. I believe the interests of the gre~t When the bill got into the ~enate, C b refined sugar
American consuming public ivill be best served by penrut· more protested the re d ucuon . in the up an t Harrison, ma d e
ting reasonable competitive cond1□ons .
quota. President Rooseve 1t, 1n· a letter to a
refining industry." .
. .
.
to obtain in the
"At the
I the comment:
Secretary Ickes was tougher in his stricture 5· .e
. d b our farmers, 5 hould not
.
Present tlme . Wash"mgton, " h e wro te to RepresentatIV
1n kept Agricultural legislation, so desue . Y othenvise acceptable
Jones "we have not only the sugar lob b1es . wh"chI are ar• be further delayed by the ins~tion 1 ~c:ns. Their elimination
agricultural bill of manufacturing reStt . ultural producers who
here in, season and out, but also a large supp IY of tempor '
ll kinds Wot1ldserve the best interests of ot~ agi:ic d parties think there
· · sup port for .a ecial
sugar lobbyists who are busy soli Citing . lemslation at this
desire . session.
. If
. I n teres tegar refining, th at can
o· . · uons on su 1
of devices and schemes they have concocte d t O obtain
.t sp one
of should be manufacturing res~ic d be considered sepai-ace Y·
be embodied in a separate bill an
governmental grants of monopoly. The audaa Y
 ·11come up for
1
t the Suo
o-nr Act fi'" ht . • the
,v1th1n
,,erY lntes ' tber dog 1g
t t I1e be ano
. iQ-10, "
111- • n lt ,vill
0$iclet'lltlO ·
rc:-e<>
inJustn·,
I am pnman
• ·1)' concerned ,vith th ·
beec and cnne gro,vers and of the C:U
tnterests o~ the dom~tic
"'hich are under the American Bag and~ growers in the islant1i
of our dose neighbors, such as Cuba. e cane growersof some
So far as all of these grow·ers, domestic and insular are
ce~ed, the system o_fquotas pro~ided in the Bill
is, on tlie wh:::
eqllltable. From th1s, the most important objective of the BiU,
I have no reason to disagree.
The sole difficulty relates to a little group of seaboard refinen
who, unfortunately, for many years were able to join forceswith
domestic producers in the maintenance of a continuing and
po,verful lobby in the National Capitol and elsewhere.This
lobby has cost the stockholders of these refining companiet
millions of dollars and it has been wholly unnecessaryso far as
protection of the domestic beet and cane producers has been
concerned.
It is with great regret, therefore, that I find that the
bas accorded a status quo continuation of this seaboarilld. C:Z
T
monopoly for two and a baJf years ~ comeTheB . mrefin·
that this
.....,,....,..,gives only one ray of hope-for it prcrndes hereas WI!
·-r- · March 1 1940, w
inY :monopoly shall ('"'et,..rnmn:ue on •l)ecmiber JI, ¥.o.
~ ;rnd cane producen quota j5 extended IO 1

He added:
 1c-ri',fOR
-rtlE D • ation-
sE"i;;L-r, . that reorgan1z .
!loo not realize _AIDerican die-
probably dok Roosevelt the . institutions
etUP• o Illa e democratic .
jstratiV~ s that ",as ~ ened. Yet that the reorgan1za-
i1e thiDg d has baPP roents pro"e d d cornmen-
1 Jrea Y d Develop d cool-hea e
CHAPTER 12 iator-a crumble . . s onsors an ous measure to
)lavenot s ·ust ,.,hat its p erfectly innocu f overn-
·on bill wa J .d it \vas: a p th helter-skelter o g
Roosevelt, the Dictator :t0rs a1waysk:~~ of order into e d. d
. " soine . . ll d ho"" they l
A...,1o~c the impromptu lobbies that fre . br1n.,dtninistrauon- d to beat the b1 , an inherent
roenta en wante the dangers
overnight in Washington bloom f dquently spr111g up vVhya fe\; ro_sa story that illustrates back to early 1937,
. , or a ay and then
seed ' none m recent history has flour· h d go to it,teinporar_Y•l system. This story goes Congress give him
il is e on such ba
so as the pressure group that opposed Pre .d R rren in the lobby1;!dent first proposed ~at l attern the multi-
. . s1 ent oosevelt'
~ov~rnment reorgaruzauon bill. Most such ephemeral or n'. when ~he Pr ull together into a rat1o~a dp endent agencies
izauons have a very tangible cause to fight for, most oft: a authorityto p bureaus and in ep di the
\icityof departments, eriod of years to ban e
property stake. Occasionally they have an ideal to achieve . phi h had grown up over a p runent . There was
The reorganization lobby had nothing except the patently w c . fu tions of gover .d
necessarilyexpanding nc th idea Every Pres1 ent
fraudulent slogan: "Roosevelt ,vants to be Dictator." On the nothingnew or startling about e d. "t Both Coolidge
pretext of preventing him from becoming a dictator, the lobby had suggeste l . .
fromTheodore Rooseve l t on anize. Franklin
brought together almost all of the hate-Roosevelt elements k d f power to reorg
and Hoover had as e or . when the Economy
and combined them with politically sophisticated groups of • Rooseveltactually had the po,ver in 1933 •ed with more
government employees, well -meani ng nature lovers, innocent Act ,vas on the books, but he was preoccup1
club women and easily frightened clerics to form one of the pressingproblems and failed to use it . . . by the ex-
most powerful obstructionist organizations the New· Deal .nst reorgan1zat1on
A reasonable argument agai nderstood that
has encountered. It succeeded in beating his first bill; then . l b de It was we 11u
ecuuve could scarce Y e ma · ld have to dele-
it forced drastic modification of his second. Congressitself could not do the job but wou and Con-
·dent If Senators
Now the modified reorganization legislation is in effect. gate the authority to the p reSi ·. f th •r patronage
"th the Jobs o et
Many of the provisions to which the lobby originally objec~ed gressmengot to log ro lli ng '" 1 . •tably would if
most vehemently were included in the second version, which favorites and their pet bureaus, as th ey inevi ld be
·1 d lan the resu 1t wou
became law. The President has is.sued two executive orders they tried to devise a deta1 e P . • .
regrouping government bureaus and setting up three new disorganization rather than reorgan1zanon. G'fford Pin ·
fr former Governor 1
master agencies to handle public works, credit and weJfure Leaders of the lobby, om ood spokesman for
functions. Most citizens, except in '\Vashington where ever_r· chot of Penruylvania to Charles Dun,., e~t reorgani1.ation
California reaction, all knew tbat governm
one is corucioas of changes in the government's adnllJl·
19')
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to po'"er, Br oo i-·
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. 1£ the · · · O s it ,vas Ho over's .
l'l '~'t"-\\.1•~ th(" 1 '~ lt~,•lf \'\)ttht , rep0r1:.- , 1 brai11 uost n . Q7
,; ,t,•nt, th.~, '""' \~•~1· , ~lant . l\ot t:\~e th . . h,,ll' I> •• un0ftic1a Con gress earl y Ul 19 ~ .
( ~......
\ th..\u l'OI . le ,U\l\Uatt"d b. ,. -~f ,ntthoni""~I\. " ·ube 11~ ",ent to efortn
, , a1 tous c .. to ~
Ulembe-ts, \C't'l tt fvi f".\ti<>nal
h.\d t".'l::actlythe
to a COIUnlOn de .
go,, ern1u.ent. ~~derati
same n1otive b babhn OQs
i1•1 Bro'"nlo'" repart
,,1_;:s
-rile_ dissented frOtn i:ai
. reconimendations for r
dlninistration , reversing its
i,rook1ll~il serV"iceand of fi a d 't Tb.is gave Byrd and
anpli,-.,.b' nom1nator-and . • \lt the ne,.....:_o llro of tbe Cl' -yearsto o i .
c- ""' Cle--,,·as d . e~en thi -qt th;~ "-hed opinions of ten . use for the unholy uproar
Th a es.ire to h s ""aS not • ~ pub= th Senate an exc . bad
e reol'<Y<>~:--t·
0~ 10n bill arassand "''·
,uscredi ullt"-"..,..,., . _.• nriates in e th p 1·dent 's comm1uee
hiS~
4

complish thi s purpos b never could ha ve bee t R.~ eu. ,. Gulick of e res . v-
cbef surred up- . . . overrunent '"bile Byrd '"as go
consid ...__, b e llt for the . o USedto
""cu Y Con CUcum.stan ac. reorganizedthe Vir~ le Senator a considerable reputa·
The u gress shortly after th ce that it 11'15
seq ence of events was • e coun-reform fiasco ernor of the state, gtVlllS B that didn't prevent Byrd
bli dJ:nin.isuator. ut
Even before th 1 unponant. . rionasap~ c;e Gulick-Brownlow-Merriam recommenda-
e 936 election th
his attention to th b , e President had ~om o:°=ged that the recommended legislation would
feelin e pro lem of gov turned
st
. g, as he told Congress l ernment reorganizatio n, u~ns-R~velt dictatorial pawers. .ActUally it opped _f:ar
t.Ions of ater, that the ex give . . · · centrauon
. government required "mod . . panded func- short of the Virginia reorganuat1on law in its con
genal equipment " But S ernwng of our mana.
. · ena tor Harry B d . . . of executive authority.
,vas busily running for p . yr of V1rgtn1a,who The President's bill was actually written by Clinton
President Roosevelt had ar;;1dent,. ha~ been tipped off that Hester, a career official in the Treasury who later was trans-
and made th fir orgaruzatton plan up his sleeve
e st public move. D etenn1ned . ' ferredto the Civil Aeronautics Authority, but embraced the
ever g' to grab what•
principal recommendations of the Brownlow committee. It
project Lory B wasd .to be had fr om t h e government modernization
provided merely for extensions of the civil service and its
. f, yr mtroduced a resolution calling for investiga ·
administration by an individual rather than a board; for
ti. on o the execut" · 1ve branc h of government with a viewto
abolition of the obstructionist office of the Comptroller Gen -
its reorganization.
eral and transfer of its administrative duties to th e Budget
When the President appointed a research committee com·
Bureau and its auditing responi1ibilities to an Auditor Gen •
pose_d of Louis Brownlow, Charles E. Merriam and Luther
eral directly responsible to Congress; for creation of a
Guli~k,_aJl recognized authorities, Byrd countered by getting
~epartment of Welfare; {or appointment of six administra •
permi_ssion from the Senate for the Brookings Institution of llve assistants to the President; and for creation of n perroa -
Was! 1 •n~ton to make an independent study. The Brookings
ncnt National Planning Board.
10st •tution, under the direction of IIa rold Moulton, hns for When it reached Congress, it ,v::is temporarily shelved
s~vera l ycar11 anointed react ion ary doctrine with ncndemic along ,vith several other bills, includin g the ,vage-hour lcgis•
0 11._Reputcd ly a nonpart isan research agency, it hiu b,·c~Jlle lntion, to give right of ,vay to co\lrt rc[Ol'tl\, Thi~ ,vns done
an 1ntcll ectur1l courtesan tc, the Republicans and R<!puhhtO· ns n mo.ttcr 0 [ Administration strntcgy. The thco1·y ,vus thnt
Dcmocrati. It cloa k11RepubJiC'an J>Olicy in 1~ell-1l1ncdnncl
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\ t'\t\,tl\,l th ll\\ l\\1\1\ , ' \ ,l._~t'\' f , 1$1\,lt'
t
t,_ ,t l ,,.~, " , nm! . • "' ~" "' . l . ,o,•t•rn1nt•11tis n1orc strongly entrenched
:• Ut>o, ",1 n, la"~:~
'' "'" th• ", "''.;" "."'""" \\\1~~ """" ' Nll\)Ill t' •I\\ Ill .,
1
. ,·)1-c"' lts representatives in tl1e field ,vear
I It
tu\,l h,111'\t"l\ ""l S , lt'~1:-lath1u. ()f hilt to C'lt' 1', • '''l'11
11
,1 o the trott'~t ..,ti, ·1· 1- ,.,s• I.ts reg·1onal
. directors
. are lords. of
\ tn,,,,,11,,bl,
r f (, . , t'\t'r
'--- .,l ,1tht't' n r . '"''" ~t\ 110th', I the Ir~, 1111
1
, greet\ u 111 01 11·" ·
• t: ll\.Jth to th l\lOte~t·e l tt1g of su,ipp) . 'Y 'l ' hcy belong to civ ic org-aniiations a11d clubs
\t. Tfl.)ll,1
,,•t-d t,\C'
~- l\ othet' e .c•ourt bill and , then lc evt-Iop
. '
n1en~ th11
~ '.ill t ht:)' SIi •s o[
ci·tI· Vt , their districts. '1~hey deal pleasantly and
. t "'" u,s "'''°"'bl 'I\ rapid sum,s ·l <!\"'"•ion h<l.•• t 1\C
ij"'"''h"ically
II\
1
~ "''" d,e infiuen<ial lumbermen and ,anch·
i11terest at nll : , e to snppost- th ,:- on. u11d
• 11, the reo . nt propert ' . . crs. ,vhcn the Forest Service needs anything from Congress,
tt . After nll • th e nYo,,·ed ~nn11ntio n b'll , . ,,,011ld,. lif tt hndnn,, the regional men simply and easily turn the heat on Con-
pron1ote efficienc • n purpose of the l . ,n\'e fuvor~d gressmenby explainin g their problems to fello,\I members
n1ent cos ts Th . } , tld tl1us, in the lon eg1slation was to of the back-home RotarY Clubs. The system works out to
. . 1s ,vas ,vh g pull. to
ized spokesmen th at propc1·ty said th cut govern- the n1utual advantage of the Service and of private property
against the b ·11 at it favored. Ye t the br ough its author- interests over which it has som e degree of authority-as it
i was bor b runt of tl fi
The bill 6 ne y property . le ght has over tl1e lumber industry. Lumber companies cut ex-
, as nally dr inter ests
by Sen ate Leader J oseph a,vn up b y H ester and · introduced tensivelyfrom public lands under regulations imposed by
R b.
the foresters. Also, they are dependent to a large extent u pon
most unnoticed through C o inson,. mi gh t have floated al-
the foresters for fire protection on the lands tl1ey themselves
and unsensational meas o~ess - l1ke any other technical
\.. the Forest Service of th:: - _ut for the fuss kicked up by own.
1:he Forest Service and the lumber industry ,\lent to ,\lork
manned by career foresters ~1cult~e D e~artment, which is against reorganization. Gifford Pinchot , bored and looking
strong political ties Thi th c1v1l service protection and me mg to do, became the spearhead of the drive to
for so th'
to transfer under t~ s agency would have been subject forestall transfer of Forestry to Ickes. As the conservation
pected, natural! the terms of th e bill. The foresters sus• adviser to Roosevelt I, and a former Chief Forest er, Pinch ot
their new bo y, at th ey would be transferred and that was a natural as a front man. And since he had fallen out
'--Ickes instead ss
of would
th be. th e aggressive
. Secretary Harold ,v1 Roosevelt 11 and ,\lith Ickes, once a fellow Bull
~
both ·th
were repelled b p!acid Secretary Henry Wallace. They Mooser, he ans,vered the call to duty with 1"vontedzealous-
autonomy th y It e idea. Wallace allowed them the saJlle ness.He laid the ground,vork for the campaign in a speaking
d since the founding o£ tour of the West, on which he was accompaiiied everywhere
the Service bey pa ways . had enJoye
.
~y Forest Service men. He put some $1,500 of his o,vn rnoney
feared mighty resident Theodore Roosev elt. Ickes, they
'
President auth not. be cont ent with · nominal control. The into the cause.
onzed an announcement that forestry would
 196 197
T Tl-IE Tfl'£ DICTATOR
. he alarms w PREssuRe: Bo .,v£1. T, " . e
JlO
Os"' . l Byrd suggested .t..,
ui.at sltlC
his mes ere sound Ys . nfidell t1a •
sage to C ed the . ~• ,.,ere still co . . ot a critical matter at the
th at we are ongress in moment th
has co out of the January, i e Preside pr0vis10-
~ .ne11treoro~ ,.,,,nizaoon J.S n
d s...-ateo-v .
to prolong hearings to a
a me to set our h trough of th 937, Statin nt lent
gement of th e o- ouse in ord er The depress·ion g: ··~o" g ve
0
r.,.,.. it Jl)lg
..,eoJ, . b t be .goo ,.. o,could not be taken becau se
__ 1 action
First to b e call o 0dvenunent n ee els. e adtnin•istraf' the litne p0i.otwhere Con gress1oll"'
Olo,v f the present session- " The same group , on
O
regular alli . e to anns b . verbaulin " •velil:!Jl. f adjournllleot o Charles McNary of Oregon, th e
. es 1n the Am y the For g. o U d on Senator ...,_ 1
uJJe 14, ca e h eadil•t showed thel'.Il a confiden=
SOClety of Am encan . F erican Forestry Ass est Service were.
JRepubhcail
· leader.' '" 0
r
1
bill The lobbyists made what copies ·
up partiall £ oresters. Th OCiation It!
1 y o governm ese otganua . andthe . of the Rob1os<>O
pr!Jlt .
. -...c-cN.,...,'soffice. "It would. however, be un·
. umbermen and oth ent foresters and tionsarelllade .,,ey needed
... Ul i•~
.. Cl ~said
1
in reporting on the mo • "dent, "if
industry, many of th er professionals emp~artly of teachen, fortunate, epper
~.,hich the • group ,'{3.5 able to see th e bill
Th em grad oyed b .
e fact that e\· uates of the gov y pn,·att the manner
be(:allle b y ....
kJlovrn, because it might close the avenue of ap-
rich berth . . ery government for ernm.ent senict.
. m pn-rate ind . ester can ho for
setvtce, as it is on th ustry is one of the bligh pe a proach to Senator McNary-"
BecauseCongress ,\-'asbusy ,4/ith court reform, the foresterS
agencies. There . e personnel of many other ts on the bad ti.roe to develop back-home sentiment against reorgan·
._ u alwa= a tem . &0Vernmm 1
ngor,,,._,1v the J-ptatton not to r_,,1~•~ ization. The Forest service became one big propaganda
-:, Dl3D who ni:r shortl 'i>""'= too
By ~
csrrr..Jobt--......and
19,7. G. H. C.O~-
.
y bemme your boss.
., ood aod Ovid Butler. for.
agency. Inhabitants of co,v towns in the West, where the
court bill was never heard of, became violent opponents
A..F--'\...bad the __ PXCCUn,
" 1 .,._,
__
·e secretal Y• respa:1i..-ely, of me of reorganization. The American Legion was drawn in by
• ~ 1
of a po111 -oful lobby alread playing on the fear of its lobbyist, dapper Colonel John
aZ'Jo--rf <Joe daf 1mt -~L l.lJIUlllil ch' 1•m1,.cm,·e
UJ_LQ,s . <rnoupJDftf otgm- in chc Thomas Taylor, that the Veterans Administration, a source
~: of ~- n-•- .Frcu__. Brcudman of the Xariooal e,- Gnnge. of pattooage and power to him and his organization, ,:night
~ Hood of, the Sational c.ooperatn·e
Q,unci1, John
.B. ~ transferred to a permanent agency. Women's clubs came
l\' o,xis of. the Narioml Lumber J.{anufacturerS ~ in, heaven knows why, except that their western members
Chester Gray of~ Ammam Farm Bareau F~ and liked those nice foresters. Some of the hierarcbs of the
JJ.emr Clepptt. nerotiv'e w:ret.arYof the SocittYof AJdtfi- ~ th olic church got excited, profe55ing to fear interference
w~th the parochial school system. The argument was that
can Forester"•
J\t this meeting it was d.ecided ro make an apPOinttJIOl' ~ c Office of Education, then in Interior, would be trans-
with Senatm Byrd to find out how much he a,uld and woUld :rred to the prop<>M!dWelfare Department whose head,
J)TCIUmahly,would be Harr}' l lopkins, then AdminisLTator
hdp embarra. the ,Administration hy hacJcingup the r~·
n-M1j1...ationt,ill, Tht Jobbyi•U found Byrd willing to·afi~e
~~ the WP A, and that his agency had been sympathetic to
,.,..... in ,inh control.
a,.4urancd of an amendment to keep the Fordt SerVJ. 1 Such men a. Willi am B. Gree ley, form<.'1'Chief Fore1ter
the Agric:uJtural P'113rtmtnt, At that time, th~ 1tnb::
t,;11..,., under conoid,,•dun by th< j oin< comm1t1<'"' '
 199
THE pICTATOR
osEVELT,
Jt o . dustry The system of decen·
mber 1n · .
1
Lhingof the _u I forest Service makes the biggest
- · g 111L 1e
, no
tO sa) . . preva11u1 ffi ·
t San Francisco an d Po I·t •
I° a11ot1 • nal o ces, a . tl
tr~ J/, distant reg10 These offices \vere filled wt l
d ruost . dependent. . d
n11 I practicallYtn . ·ng under Greeley and retnaine
1an<,
, who got l heir E tra1n1l e left the Forest Service . . 1928 .
in
1
,nt·n
. . untc wit l · I hin1 a ter
. f { { Ickes was that he ",ou ld b ac k
11
1111
1
,s chte ear o ..
"]'he 1t1n1bcrrne1. h" effort to control "timber butcl1ery
15
Silcoi-cffcc . •t"vely
i
10 d put into effect the Silcox· proposa 1
,he \'est coast an t timber in the nauona . l £orests,
011 governrnent cu
to h,1ve' t1ic . I r to private loo-o-ing contractors
. . l of turning t 1e1n ovc oo
Ul$lt',ll •
page basis.
t 1111 .
on,~,;tl~ th; lun1ber interests lined up, ~l~e Fo~est Service
work.eelthe other side of tl1e 1·oad by un1t~ng_"'tili lum~er-
""l pseudoconscrvation organ1zat1ons, reaching
1nfflla~w tl a
out froni tl\cn1 into the real conservation ranks. Its prop ·
s:ind,1traveled on a many-spoked " •heel ~\fhos~ hub ":as ~:
.\1ucrir:1nForestry '"\ssociatiot'l . Key men 111this organ1zauo
nrt Butler, G1·eeley,and John \V. \Vauek , Jr., president of
the National Lu,nber 1\{anu(acturers' Association. Greeley
:u1<\\\ 'atzek are dirccto,·s of the J"\.F. t\., and in propaganda
on 'Fol'est Scr,·ice n,alters they ,,,ork. closely ,\fiili A. R.
\\'auek. of Portland, a big \Vest Const logger. The rest of
the directors of the Atnerican Forestry Association are a
trt1stit1glot of college professors and scientists ,,,ho are chi~fiy
,-nlt1ablebeca..,1seof their connection "·ith other organiza-
tions interested in conservntion.
The lun1hcr prop.~-..and.i, nl,,-a)'S coupled \\'iili intense
de-,otion to abstr:i.ct p,,inciplcs of conscn-ntlon. goes out to
1
\\"Otl'l.eu'sclubs, collt.-ge and high school teachers and otl er
gl°()llps. These unsting people liYe in the men1on· of ilie
1
tight bet"·~n Gifford Pinchot and 'B.'llli11g,::r.bad in 19 1.
ttnd ttp\)<\Tel\tl)'11e,·er .,sked thcn1sel\'CSwh) the lumbering,
 I ()9
. I II I' 111C:r/. ' J' Oll
I 11 I I' II I 't /l I I II II ,,~, v1r , 1 I,
111 111,• 11,111, , St , 1111, ~ ttll · . ' l'h c ~ybtt•ni c,( dl'ccn
I 11 • llfr·~, IIIJ\V I Cl ,11,111,11 Y·
If I l\ l ,11111f,111111r Ill J\N\111 IH 111,111,1 •1 itl 1111• W 11" of th<' 111111, 1· ,,t S<'Ivice n1akc•11
th(· 1,i~g<'sl
111r•~1d,·111 of lli1 ,, w'•lfh111, l'1111h111,, l'/11 <:IJil~j I ,rul 11
l n , . . II l he •01 c. ' • I l'
I ·1•1
I
• ,II r1 ' ' •1'111u • 1
,111
'" ~.,y . 111cv,11l11111,' fl
• rd o ICc~. ,1 • ,
. I S 111 F1an< isc:o an< 01• lI
I If I ,II 11111111111 II fl
• •
Ill I ,1•,1~111• Ill I
1111,111 I •
ril
• • I /·• v,r11,11I1 w. , ,111111
,,,,lit• ,1j,1a11t ,,•1,1101. ·1·1c~<· oflic.;<·s were filled w1t 1
< ,, 11<·1,d Wildldr· ,,p:1111y i • 'y N, l>,1111 ,
I ,,,o~t . I •1ic11cl1•11t. Il •r. Greeley aocl ren1a1nc • d
A '
/ \ ~,Cl( l ' lf
"" ,
'" Jlll•\l ( 11~
~rt• . i tioilly ,1H <: • •
v:11IIIIIN 1•111rl. pr,1 .. . II ;ll TIIllll; u nc C . • '8
,111111~1• ''"
I I . ' lllll, 11/11 , lltK
11 c
, ,1111111 lo 1111• I•' I ''Ill
1111,~1 s (Jf 111'1• '
1111'11
ivlio gol tht 11
I . I 'j ri("I It
I . left the Forest Service in 192 .
L, k
y 1111111
JII V,111•j,11111111, II . ,11•1·l1·yJ,\Of ., ti I . l'JVi11•',
' ,,,1i1ri:it1· widt .".'1 c;,iel fear of (fkc11was that he would ac"
F1111•1111·1 i11 wlrl I I y :tl11•1 u1,tld11/.! ,1 , • , , Joh Will ·J'ht·J11rr1h<•11n<II H•. l. •!fort to control "Limber but chery
' •<·llll<'t ,·~111 I , , ~ Chitl
' ( I ll 11pl11·ld I • "'"'" ·1 I
,111•11, w/10 /1 td I
'
.
11•1•11:11I :H kcd I S o I ltc l "ii'"" clf<:ctivcly111 11dsc 11L 1·11toeffect the Silcox proposal
I 11 ,, ., IJ1111111•11<li11 J ,
K.11111:111. ,y , t·11:11111t\1 tli11r( '· u111htr on t11cWc~t Coa~t
•1
. an. t ))·ut ti1nher in the national forests,
J .011g ,,f 1/1c W , • J . 14 11t11 Io, l1i11
< yt t 1,11111r1 l urn I , ('
prc~c,u J' I ''.'fJ)lt1of
,, ,, Cc11rge S have ti1C ,,Cf()\ICI
• nrncll . C ,r t<>ptivaLc Jogging contractors
10
11·p,,,, w:r11tire rn,,111 f1i<'11cll '. JCJ ,()n1pa11y said: "'Ji . . I of turning t 1,cm ovc
rrst.ea<
1 .
" 1111'1Jic olli, ial ., c; ) y J t porL that li:1! <'Ver a tc on as turnpagc basis. . t lined up the Forest Service .
', .,. cy 1hcrcforc s k Jntcfrorn
J . ,
utn!>c.1111c:uin <>J>J>()i.ing
Ag111.11Jtu1,•J)epar(rncnt l
tbc hill
, ·. ng worked
£:
I~ for the West Coait
for ihe
\\/'th the lumb er 1ntcrcs s
1 h,
,
'de of the road by uniting with lumber•
worked the ot er s1udoconservalion organ11.auons,
. . reac 111ng
.
or a while and I men to control Pse .
t<-rt•y l wnvin<c:cl tlJat 1't I pro,ablyw~a,in out from them into the real conservation ranks. Its propa-
~~s
· • oug 1t to rcta ·
11at1onal Jot<'&t.J Wood . d h' Jn control of the ganda traveled on a many-spoked wheel ~hos~ hub ~he
l<.>okinvto th,· ;,.,.r"•t S a~ fl~ organir.ation were used to AmericanForestry Association. Key men 1n this orga~11,auon
0 r-., .... ervtrc or ·
<OnMrrVation. . promotion of the cause or are Butler, Greeley, and John W. Watzek, Jr., president o[
the National Lumber Manufacturers' Association. Greeley
• ~hen F. A. Sileo:, the fJTesent Chief Forester, took office
and Wat1,ek are directors of the A.F.A., and in propaganda
tn ?33, he found tunuelf up against a system kno . h
tCTvice "G . wn 1nt e on Forest Service maLters they work closely with A. R.
aJ rcelc.-yism." This was Fore,ter Greeley's policy
\Vat1,ekof Portland, a big West Coast Jogger. The rest of
•of "(;0-() pc r•atton
· " •A:tween
1.. •• the Forest Service and the: lumber
the directors of the American Forestry Association are a
tndu,try, ~ policy described by Col. George P. Ahern, Pin•
truAtinglot of college professors and scientists who are chiefly
wot a.wxtate, as "the lumbc.-nnen leading the Forest Service valuable because of their connection with other organi1.a-
~ the !,and." Silcox wanted public regulation of private
tions interested in conservation.
uml>:" Jandl 1,imiJar in r,rindp1e t:o government regulation "fhe lumber propaganda, always coupled with intense
m pnvat.ely owned coal mint!), which had been advoc:awd devotion to abstract principles of conservation, goes out to
l,y pjru::Jiot before the Greeley regime, but, recogni1ingthe women's clubs, college and high school teachers and other
J)'JWCT of the Cl.nnbination he wa, up against, be tried to group11.These trusting people live in the memory of the
11
edge :Jltmg vy Jaf,e]ing his plan a, "co-operation and regu· fight between Gifford Pinchot and Ballinger, back in J9 ,
• .. and apparently never asked themselves why the lumbering,
la uon. • hiUJ,
Sikt.r/4ntVtr even got the Forc.t Service h

i
 IC)9
rcTATOll
-rHE I>
THE PR.ESSUR.£ Roos£v£.LT, . The system of d_cccn·
of the United S Bovs
"-- tates, no,\ • Ju!llber 1ndustry. . makes the biggest
u.:r 1fanufactur
- ers
Assoaati . martager of th e \,yes . of t h e F ·est Serv1ce p
president of the T-ak on, Pinchot G t Coast l
i1otl'lll'lg. ·n in the o1 Francisco and ort•
th = · "\Valto L
e cartoonist. actino- in . n eague, and a •v.'\V
' eorge ,., ull\. io_~;tion~rev~~eggional offices, at Sanffices were filled with
General "\\"ildlife .i_':__. _his capacity as J N. bar~
•--i.»VUaUo
~
presid ng,
tr"' dtstall
aJJdfllost . Uy wdepen en . d
rac:uot
d t These o
. ing un er
Greeley and rerna1nc
.
• d
28
d .efense for ' . n, sprana- to th ent of th 1an ,
dP t their tratn h Forest Service in 19 .
pnvate industn-
:-anons reasons G
short!
o e Forest
aft. reeiey got a rich .Setvice
c
·s ' 111en ,~no ~~ hilll after he left t e that he would back
·matew1 . f f ar of Ickes was "
Fo..-- · Y er makin· Job w·th
1 iJJOI i:nberIIlen'sch1e e control "timber butchery
•.....cer. m 1,·hich h e upheld th · g a repo rt, as Cb·
men. 1,·ho had been
attacked b Sena
e interests f
o the lumber
ie( [::oiu effectively in his efEo;\;~o effect the Silcox proposal
Raos:is. In rttomm . . y tor Arthur C . the \Vest Coast and pu . b in tbe national forests,
on ent cut t1m er
Lm~ of the "\\~e~had1ng h,~ for bis present job Geaporper of have the governro . ate loggt'ng contractors
; ..._. user umber C • ge s. to . them over to pr1v
repon ~ the ~"t friendly r, ompany said: "Tbt wtead of turrung _
.:i public official:· Gree! epon that has ever come from on a stumpage basIS- r ed up the Forest Service
lumbermen in o . ; theref?re spoke for the ,vest Coast \Vith the ltbumbe~din:~r;:: r~:d by ~niting with lumber•
A ,,....;cul ppo:sm.,, the bill. Darlioa0 l\'Orked fo workedthe O er 51 e • · h · ng
-~ ture Departm fo . r the t control pseudoconservation organizations, reac l
_, . ent r a 1\·bile and probabl .
=r
<..Cl COnVUlced that it a . y wassm- menfro them into the r eal conservation ranks. Its propa•
out om b h b was the
national foto.s. "\\-ood an~ug~t to r:~ control of the ~da traveled on a many-spoked wheel w ose u . .
ook· his orgaru.zauon were used to o · hi gan1zat1on
l ·1nu.,, to• th e F orest JCL "----=v•ce for promotion of the causeof AmericanForestry Association . Key men 10 t s or
mnsenctaon. are Butler, Greeley, and John W . Watzek, Jr., president of
the National Lumber Manufacturers' Association. Greeley
_ '\\lien F. A. Silcox, the present Chief Forester, took office
and \Vatzek are directors of the A .F .A., and in propaganda
m 1 ?33, he found himsrli up against a system known in the
as ''G ree I eyism.
· ,. T his 1vas Forester Greeley's policy on Forest Service matters they work closely with A. R.
..
seITIO!
\Vatzek of Portland, a big West Coast logger. The rest of
of co-operation" between the Forest Service and the lamber
the directors of the American Forestry Association are a
indnstry, a policy described by Col George P. Ahern, Pin·
trustinglot of college professors and scientists who are chi~By
ch0t associate, as .. the lumbermen leading the Forest Service
valuable because of their connection with other organiza-
by the hand." Silcox ,,-anted public regulation of private
tions interested in conservation.
timber lands (similar in principle to government regulation The lumber propaganda, always coupled with intense
of pti\"ately owned coal mines), which had been advocated devotion to abstract principles of conservation, goes out to
by Pinchot bcfmc: the Greeley regime, but, recognizing tbe ,vomen's clubs, college and high school teachers and other
power of the combination he was up against, he tried to groups. These trusting people live in the memory of the
11
edge along by labeling his plan as "co-operation and regu· fight between Gifford Pinchot and Ballinger, back in 19 ,
1arinn." and appare ntly never asked themselves \vhy the lumbering,
Silcox ~-er even got the Fore.st Service back of luJJI,

I
 200 E pJC'fA."TOR
• • THE PJlESSC,Jt tvtL'f, -rft 'fhat ,.,as an
m1n1ng and gr . . £ Boy 8 lloos . and agncult~~e- k" the court
f az,ng inter
er of the Forest Se . esr., put up rnonc business 1 to pac .
trol over the propOsa tra:ged public
letters and telegr rv1ce. From them y to preventt . I can sition to . of an ou
controversy.
ams to Con came th0
grcss during ti
rao~
u,an<4 ~ •ob· opp<> he weUspnngs black-robed occu·
le reorga . IJf easYJ frorn t . • For years • d caste.
n11.ation bb!ed up . h jud1C1aTY• . n's only utle
bUnecL(or the b•ghhad been the nat10 .i·tch defenders of
resr- th benc as }ast-ul .
of ~ for the 01ost part
3
Frank Ga nnett, newspaper pants eded in surrounding
b . \v!iilese~ing the judges had ~u~ d aloof godliness.
~~de against government r[o~g:7er,_ Wasinterested in the nghts, f · fa}l1b1l1ty an
property . h an aura o infidence and respect
o er of Gifford and zation by Amosp· selvesWit d the con
Gannett's Comm· a conservative New· y k in?Jo~ thelll. Uythey also had earne . bt.s-but not so often.
. . ittee to Uphold C . . or lawyer 0ccas1on;ople by defending b~man n_g t a wall of habitual
had tried its wings earJie . "'' onst1tut1onal Governm .
th r m uights of tr. . ent ~L~;yprate,the President's b1lellaru~:e~yn
:asy to mobilize this
e Supreme Court reform and til'!'~ iottc fervoragainn ch . It was r b rea k
b lls M u 1t1es h Jct· 'd \alTIIof the b en b . f --ontbs to
few r1e = •
0

I . ore recently, it has been fi hf o ing company 1 o - , . ·

Wagner's public health bill d Jg_ 1ng Senator Robert F. sentimentand imposs1b1e, in a
tionaries in the American -: dicalp aying ~e ?aine of the reac- it down. . . . bungled its campaign for
I e Assoc1at1on Moreover, eth AdmiJUstrauon t ken into tl1e Pres1-
.
effo:t. most sp~ctacular success was the Supreme Court defense thebill Congressional leaders were not a 1 n
. Here It had made the contribution of d' t .b . dent's~onfidence before be sprang the enla r gement hp anho n
copies f th . 1sn uung • Th fcs devised by t e t e
o e testimon! ?f opposition witnesses ,vho appeared an unsuspecting public. e tac 1 . . d
· e overmgen1ous an
before the Senate Judiaary Committee. It also had arranged AttorneyGeneral Homer Cummings wer .
for the rebroadcast of anti-court-packing speeches by Senator underfrank. Finally, the death of Senator Joseph Robinson
Burton K. Wheeler, the liberal turned conservative, and of Arkansas, the strong man of the Administration leader-
Senator Edward Burke of Nebraska, the conservative who ship at the Capitol, knocked the strongest human prop from
somehow contrived to appear liberal until he ,vas safely under the court plan. Fence-riding Senators went over to
elected in 1934. From headquarters in New York the com· the opposition in a body when they realized that there was
mittee had sent out thousands of appeals to citizens to write no longer a bull-voiced Robinson to call them off side.
or wire their Senators to beat the iniquitous Supreme Court The President's attempt to break the Tory hold on the
Supreme Court lent itself to the charge that Roosevelt was
reform bill.
trying to make himself the American dictator. The dictator
Gannett and his committee got an exaggerated opinion
slogan, already well circularized by the direct-mail and
of their powers in the Supreme Court affair. There is no
ne,vspaper campaigns of early 1937, ,vas carried over into
doubt that they helped beat this measure, which lvould have
the reorganization fight by Gannett and others. It was a
permitted the President to name six new justices and tliu; ready-made-but in connection with reorganization, a phony
0
submerge the conservative majority which was killing -slogan. It probably wouldn't have worked a second time,
. . . Ii h dequate
the legislatton he considered necessary to estab s a

i
 -rfi£ ptG'fA."fOR
THE p
even ,vith th R.EssuR.E Bo lloos..."" EL -r, d is the sor t of full·
e previ vs ded hills. oun,\fO~ y even at a luncheon·
work of the Fo ous buildup b ..,.,,~oo attention a· · ter
1\,.. rest Service ' u t for the tel' fro,,.. ho attracts . ssroen- ,n.1S 1n ·
l :1.any of th e organi - and 1·ts
a Ilies
· otgan· f 11'11
o oc1ed e,ttro
v,
vert •
ndino- \\Tith v11
·ile bus1ne
C lifornia Charober
obby had not com . zauons ,vhich e. liatiol\
blo i,ngabou "' d that the a
~rganized when thee in, and those whi;~uaUy joined ub !lleet .on ",as so 1ou h full-time job of run·
cl nservatt . ut for t e .
m the Senate in Mreorganization bill ad were not the estin co picked h!Ill o T.:r came to Washington
or • arch 1 8 came u f "-'e]J o:unerce d artrnent. n.e a]if .a
garuzation had . , 93 . Nevertb I p or deb of Co nserv'ation ep ·at1·ons to rid C orn1
Rumely--once edigot tn some licks w·the ess, the Gannate . ·ts co k. appropr1 d
n1ngi fall of 1937, see ing threatening its forests, an ,
tor of th · 1 Dr E e11 in the hich ,.,ere then 1 oney
sentenced to p .
. r1son when h
e New Yo k
r Mail
. dward A
h . f ·nsectpestsv, h Federal fl.ood-contro m
time propaganda sh . e was accused of ' . w o l1•;u ~ i·dentallY,to get as rnuc
retary and . eet with German runrung a war 1nc1 •th
chief propagandi money-as acf . as he could- £ table Hay-Adams House, w1
about $50 ooo and
h ' sent out
st, the Gannett com . ing sec.
mittee spe
once dug tn . at the corn
. ns on Capito
Hill established, Dun,.,oo d y
. l or ,.,as
t e bill. The old Black lobb some 8_00,000 letters oppos;t bisconnecuo . l
me He yearned for a b"igger·
by Senator Sherman Mi y committee, then chairrn g fascinatedby the lobbying gad" ~tion and found it in the
nton, revealed th anned . 6 ht than mere pest era 1 . H
propaganda while the bill w . e source of the :~ si~ering controversy over the reorganization b~ll. e
did no good. as pending. But the exposure immediatelytook command of the scattered forces ,.,h1cb th:
In Gannett's organization were man . forestrymen had already interested. By March 8, i9 38, h
them Jame.s Truslow Ada h . '. big names, among was able to boast in an intervie,v with the late Paul Y.
2
Dr. John Ha ms, t e historian, Sumner Gerard, Anderson that he had co-ordinated the activities of 65
. ynes Holmes, pastor of the New York Commu-
organi7.ations,among th em the Farm Bureau Federation, the
n1ty _Cdhurch, Mrs. Benjamin Harrison, widow of the former
pF rest l.. Federation of Women's Clubs, the I1aak \,\Talton League
. c.-nt' Dr . · E · W: Kem . · merer, t he p rtnccton. economist, and the National Grange. li e could boast also that Senator
piscopal Bishop Wtlltam T. Manning of New York, Louis
KeyPittman , whom he described as an old pal and h11llting
T~bcr, ma,t,·r r,f the National Grange, and Jircdt-rickII. rompi,nion, waft the "~pcarhcatl" of hi s drive. At thr 1irnc he
St1nchfit·J<l, f,,rmer president of the Am,,ri,an I~ar As5-0l:ia• wa~making l'inman's offtrc at the c:apitol hi 111cg11 l,11 work
1i,,n. MOit of tneM· rnernh,~ • 1'cpt in thr 1,arkgrc,und.A fr,w,
ing licadqua 11c1 A,
lir1wcvt'r, w,•rr·1111·(11If,,r Jhti~,ri with the other 1Jtgani1111io111 l)1111wootlypl:iy1•tl oil hi ~ oqi;,11d,at io1111 a~ lit ,11011 lei 011 a
fighting tht· rt·1Jr~:i11i1;1tiot1 1,iJJ.Arnr,, J1i111 lltJL 1n11ldltt•rp 1'•11JC11111,an. l lc• l'"llf·tl 1h1• 111 11II 1111cltc·lr1-11nph NIOJI~ ,vl11•11
11111 ,11,h witJ, 1,i, l,1,,11,,., :1r1d 1l1111 witI, tl,r· {,,,,,,11yJ,,J,J,y'• llll'y w1•11• I le• ~111·w,vh,11S!'t1>1101N \111·,r w,1V<'I
ll111~1 111•1·,lc•d.
c;l(,,1t11. 'l al,, 1 al&11w;,, 1i,-d 111 11,-v,·1,d ,,p1111,itio11 g,11r1J1•·
1 111
111 1•1 t\11 hi• lt11d to clo w.,~ llr111d111rK~llf\l'ft 1hi\VII 11po11 1ho~r
,,,,,l,:if,1y tl,r. ,,,,,,, 1 lft·t tlvt• 1,,1,1,yi,1 ll/f''"*'
11J1•1r ,,w 11~ wa~ t1yh11\ 101n11vc·11, 111• "till H•p11'"c-11t1•cl 1h1° <:,clll111111,
1
i1,1ri,,11f,jJf w;c, th1• Ji11l1 ~ 11,,w11
11
J,11,JJI''*•'"""/1111111lr1k•l1•Y• l:1111111111'1 ol ( )0 1111111111 111,11,,11011 ,1 yr,11, lt111 lclNNl,1K' ' "'·'"
11111
•
, ;~1,1,1111L ·
,, r ,f,.11Jc1J111111w,,,,, I I / I I
y, w ,,, "'' 11•111111 · 1· J,1 • ·• "' 11 1r,11ly 1 ,pa111l1 cl ,11111It,• w11• l111ppy. S11 \v1·11•hlN 1 111ploy1IN
, /low
,nt,1111
Ill Ll/1181 I V,1(11//1 f1, :1 11111111 1 I II JII Ill I JII IIJJ(J/1 ,I Ill
I
 • •rill ~ Ol C·a·AroR
·r1t.E PR..E ,
osEV£• · ' •
ttO . ·I rt beca1ne a chan1p1on .
b.."lck in Californ · ssuRE no\ •s
el · ta, ,,.ho l p ·k Gca1 ,a
n Nationa a1 • d t.11erecipient of encourage -
Deal. Some of th:
r nt1ons " 'ith th F ,vanted to k
orest. Service an~et~ t_•ptheir ft• J{ings canY O
cause o
f conserva t"1on an
d in that cause.
One of these c1· ti• ·
behind the unspeak:~st influ~ntial of th:•screctit th:e~dl y of the _' citizens intereste_ de out a check for $100
Governor Culber e Associated Farm Ill ,vere the l'-lew , uoin d Achilles, 111a t.l
oie11 "Nlrs,Gertru e . f the campaign for 1e
described h t Olson of Carf . ers. lllen iens,a I defray expenses o .
t e State Cha t orn1a, on arhart to he p the check got into an en-
April to, • to Ge . cake however, 'f .
for many years h
.
mber of Commer
as apparent} ce as a b d 939, ....rk bill- By JIUS 'Alfr d J Elliott, another Cal1 orn1a
special private interests h y operated solely as o' y "which .,eJopeaddressed to
r- e t of· the park bill. • E11· iott gave
th,vart the will f th w ose sole obJ.ecf a front' for • . nd opponen . . £
. o e peopl .. . ive has b Representauvea d ho returned it to Cal1forn1a or
with the regional offi e. I t ts intimat l een to the check to ounwoo y, ,v d then tipped off the Federal Bu·
liaison activit i f ce of the Forest Serv· e y connected ·r to Gearhart
relllaI ing . . thant Gearhart was about to get a b r1"be.
es O Ernest D ice, throu h
former Forest Service em l udley of Exeter caJ the reauof Invesugauon th checka Gearhart promptly returne d it. to
ber's conservation
I
~ oyee.and chairman ~f th e Cornia,
committee. ham.
When be got .Mrs e Achilles.
' Later he learned about the pan 1
overzea lous •
t was not until Dunwood .
scene, shortly before debat y arrived on the Washington to discredit hiJD.
The whole affair was aired before the House and Gearhai::t
reorganizatio n lobby had e opened in the Senate, that the was thoroughly vindicated. Elliott and Dunwoody, conttan·
the bill got to the H a :onfess:d co-ordinator . When wise,,vere thoroughly discredited. The incident sho~ed ~at
attempts of Burt Wh ~use in April, after surviving the Dunwoody,vas still playing the game of the California utility
it out of existence in t:e er, Ed Burke and others to amend interests in Washington.
The Wh I e Senate, there was real co-ordination. Dunwoody ostensibly lef t Washington after he was called
branch feeCer amendme n t ' w h.ICh proposed to give either upon by Senate investigators, but he managed to keep on
. h O on gress a veto power on anything the President
co-ordinating from a bide-out near Washington. H ow much
m ig t seek to do u n d er th e b1ll, • would have made it com·
he spent is not kno,vn. But it is known that he pulled the
p 1etely unworkable. But it was beaten. cord that operated the telegraphic shower. In some cases,
A:fte~ he ha d been exposed as chief poohbah of the reor- he arranged for payment of toll charges on batches of tele-
~•zatio n lobby, Dunwoody boasted that the resulting pub· grams. As thoroughly as the telegraphic lobbying technique
lic ity had produced so many offers of employment as a had been exposed in the fight over the utilities holding-com·
lobbyist that he could accept only about half of them. What ~any bill, it worked again. With Father Coughlin threaten·
firms comprised the accepted half is not known. What is •ng dire things on the radio, and ,vith telegrams from
th
known is that D u nwoody became involved in one of c powerful constituents arriving in bundles, Congressmen
shabbiest attempts to frame a member of Congress ever were again stampeded.
undertaken. The intended victim was Bertrand J. Gearhart,
a Congressman from Ca li fornia.
As one of the propo nen ts of a bill to create the John Moir·
 206
..,L T -rfiE pJCTATOll
Boys
11-oosEV.,_ ' of the tv,o agencies. The Vet-
loyees
Besides th e ext 4 II it was\_,orth P
. by. elll,vorried · overstu ff e d
about the fate o f its
~ork inside the ernal pressur ~ ·t should be transferred to a W elfare De·
e¢1 "• d!J'.Jin1strauon,
ing at Ad Illl . . Bouse . Joh n 0'C
es, there Wer
•••P'"5
. tbe event
reor
th
.
e open.
. n1stration
gamzatton bHI
Be ma
onno
mea,u,e,
came along, su
e stro
fr ,, who had
om arnbus
:g"'-,eensh~t
P'rune11t,
. Tb•
rk<d with
1 th< Legion and oth<' vetenn•' o,gan•
\o/O c;,il 5.,vic< Coro'"'"'°"•
• • w h "" top ,ta ff
,zauons- acticallY run the American Federation of Gov-
to ma,ch alone "fde dramatic, dden!y took th "•til ••· !lle!!lbers prmployees, brought Ul . William
. . Green an d t h e
bottles. Until t~ he had to ma~~che, ahoot h: th~~•Id~ e~¢ . .
""'"'''"t EF•"'"tion of LabO' " aihes of th• anu.-e~,gan-
and soul with then, he assured th ~refoot over bW11lingnesi . ,,..hisunion is not only an affiliate but also a subsidized
a kind when he Administratione House, he had ~okenbeer P" of1 th< Fed<'adon- It is ooroposed pdndpaIIY of Hoo•"
1iers.
Ru les he e made his fi . e still carr· eenheart and Coolidge appointees and Republican fellow travelers.
lea. I . operated the ght, because ied Weightof
A at1on.
o·s stop-and- go signal
. aso Chainnanof Its members not only didn't ,vant their agency reorganized,
more compell · n alm.ostall but they also didn't ,vant a lot of New Deal appointees
of old-time C ing consideration blanketedinto the civil service and made permanent fixtures
the bill whichongressmen that the .vil'_ho,vever, ,vas the f of government, as they themselves had been. The National
~
' would h c1 servic ear
Federation of Federal Employees-the biggest of the govern -
n?n-policy-mak.in _ave extended the m provisionsof
pie intolerabl lg officials, lvould cut . er1t ~ystemto all mentunions, although independent-and the United Federal
.
sutuents as . y. t ,vas h ard enough t into . the tr patronacre Employees,a C.I.0. affiliate composed largely of New Deal·
1t was M o satisfy h " ers, favored the bill. But the open opposition lobbying of
bureaus which . oreover, they dr d ungry coo-
ities. Th ,vould complicate th . ea e~ a shake-up in tbe A. F. of L. union contributed materially to the bill's
ey wanted the Vete err rout:llle fixing activ•
defeat.
ey kn ew what official t rans Ad m101stration · · w·hereit ,,M, The_House voted on April 8 to send the bill back to the
,et ~•s claim. 'Vha th o get m
Th · touch ,vith to satisfy •=·
a or reconsi erat1.on" and another reasonable
committee f " •d •
busm
. ess of getting littl t ey call th eir· "d owoto1vn 1vork,"the
fa d on P ,vent down the drain- It ,vas the Presi•
reorgani,:ati lan
t1TI:• d epartments, w uld e vors for constituents• in the e.xecu· .ent's first defeat on a wholly spurious• issue.
. It was the first
shafting ::i.bc, have been interfered ·th b .i.:, f
the forces of property had been able to beat him just
0
• ut. Some of the . ·w1 y = nme
k ha
rmght have been affected, friends they had placed in jobs or the sport O f b eatJ.ng
. b.iJD. It showed that the Roosevelt
.
exaise for ,otin . too. Most Congressmen wanted an terdsbad by dint of tireless propagandizing started the
gress itself neverg ~ reorganirarion. That is why eon-
5
ul
pen ulum
SW1-ngtngback their way. Congress found that it
· ·
co d defy Roosevelt without being hit by lio-htniIJg. .A.little
tion plan of its Ol\,'1}. LY"'"'and cannot pat through a reo_.,nilll· ,, ~ grou~ of disgruntled politicians like Pincho;, publicity seek·
a by the ti all -- ,one logrolls with his pet bureau.
. like G annett, ax-gnn
ers . din g representanves
. o f propertf
• nd me ofthe
The rtlactanre Co deals are made nothing canbe done. interests like Greeley-supponed by the unhappy reaction·
and to shift the V: ngressmen to extendthe civil sefVict
eterans Administration was playedfor

I
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'
II 11c•1 ,1 i;1c•u1 l{o11 N1•v1•1i vlr ·101 y ur lht' poll,'i, 1hr ~1•ro111I WU$
p,HCH«·cl II Itt•1 an t•lt'cliou 1{<'111•1,illyhullt•d nH u Rl'pHlillrnn
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1 tiS for tht• lt•1,1iH la1io1t, 'J'he bill, howevt'r, ,vnRonly n ~hnclmv
of i111old 11,·lf.The rivil servlct· ancl finnnri.11nchuiuls1rntlon
f'1•;11111e11 \\lt'rc stripped away in con11ni11rc· nlong ivlth every•
thin~ c•l11c except a111hori1.n1ionfor appointrncnt or the
]>resident's six assistants nnd for transfer of bureaus. !\fore •
over, under the revised bill, Congress could nullify 1l1etrans•
fer orders by n majority vote if both houses disnppr?ved
them within sixty days of their issuance. Failure to chsap;
prove ,vould confirm. Under the original bill, disapprovn .Even
would have required a two-thirds vote of both ouses, h
 211

t.J'fLEl!.5
'fllE s sornetbing noi\l
. we do know
·a11obb1es, A -erican declara-
liJlanc1 ding to an ~· .
. . ns alld uvers lea Th Nye coounittee
u111t10 t JJlalle • 91 7 e
Jll tlJesecre GerroanY 10 l • stage-managed
bOut o-aiOSt th :Morgans
~onof war a,,sold the idea that e did not. Without the
CHAPTER 13 haveover They, of course, ·can ships and all
JllaY I sho'"· ·nk · of ,Arner1 •
e
tb . who e e101ulll the s1 ing 'al Germany, this
f B t>" • d by Iroper1
The Sutlers invas1o!l o utrages perpetrate 111·to the conflict. But
t11ero b en drawn
the orrycould not have e that we fought a ,var for the
How ~UCH the property lobby had to d . . I• coun h in the theory
entry mto the World War has b o with United States thereis enoug pause.
h tl een a constant1 bankersto give th,::so::: about getting to the bott~ro ~f
o y debatecl question ever since th Am . y and often
ary Force returned from Franc Ne h encan Expedition. Nothingmuch D al callle alona with its
S\\•er has ever been found p tri . f
e. o ,v oily ti fa
sa s ctory an- the war's causes u
ntil the Ne,v e o
ch naers from the temple. Until
.

. · · a one ervor generat d . . ·

talkof dr iving
the money
p
a "
had been too hot to han e .
d1
,vartnne produced such an emotional h e in !'tf rgansand du onts
E • angover that th thenthe o . e from the Administration, was
co~try or a ame hunted Reds instead of truth Th e But Congress, taking courag . . Doroth Detter,
dunng the years of prospenty, · ·
everything ,vas forgotten en,
ex- in a moodto investigate them lD 933· l\fiss . 1 Y .
cept the quest for the easy money of the ne,v era. It ,vasn~t an indefatigable peace lobbyist, talked Nye into accep~g
until after the crash of 1929, "·hen cynicism became the ·"e assil!'lllJlentand Stephen R aushenbush, a scholarly me
u, a • hich N e
'rnglle. that a real effort \\'llS made to find out whether our Yestigator,got a chance to do the work for ,v . .Y
"-ar to make the ,vorld safe for democracv 11-as.in fact, a war gathered the credit and the forensic proceeds- T he 1nvestI~-
th
to m:tke .-\merican investments in the Allied cause safe for tion proved beyond question that big property int~ests, \\'"1
the :\!organs and the du Ponts. The country became curious. their influence over Conoaress, helped push the Umted S':"tes
too. a.bout the oosis for the theory that the causes of the ( into the ,,·orld ,var.No more searing indictment of capital-
depression ~nt back to the l\-artime inftation. muunder stress is to be found than the hearings and reportS
'\1th Euro""' r- :l%llll
"' seethino-::,- and another :,!relleral war of the committee.
con.«idcrcd inmc.ble b, the expe.m-the l~ns to be Je:unt<i And what came out of it all \\aS a Neutrality Law. The
~ our cq,oknc.,c in the wt "-ar 3tt matt important chan principal accomplishment of this law "-as the help it gave ~e
her. If we we:re lobbied into the bst ""-;u--and there is con- fiScistsin their fight to crush democracy in Spain. Under it,
~bk e,!tlcnce to srm:x>n ruch a thesis--w-e should tno" ~ Cnited States contributed to the de'\'elopment of the
•• air rorce that has made Hitler ,,•hat be is and to the con-
~ icrn~cr d. the lobb-ri.s.s 2:id the ::urore of their oper.r
Sttuction of the \\"al" machine that made coastal China 3
. -..n:.,,
. -
riocs I h.;; h t-> the hr.J:shncss of. a roung Senator from
Da\ts,;A.. Q=Jd. P. X-.c. who ..-as willing co hu<l 111
Japanese province. The President wanted the law repealed
or drastically modified at the close of the 1939 session but
- - ,..
m-=stt-;,;i-~ •Ill' ;;:;::-= a> !.oak icto lQC -,:--- nnff":2ti0DS of the
 213
212
THE D £ su-rLElls d E
. ~RESSURE R -rfl S curities an Jx-
the isolationist bl . O\'s by the e f a
oc in the S censure d 1 kno,vled ge o
posals and forced h.1m to gi enate held o ut ag . . e been .. to revea . bl to
havesJ.!lc_ . for fa1L1ng I rnaY be poss1 e
Meanwhile, the warshi vebu~ the project. a1nsthis Pro.
1
~noe Gow»-. - ,.,11ss1on
d Whitney
. case.. t h .r past per f or ro-
sutlers are agam· reaping . P Udders, mun·1t1on . cbang. the iuchar . b stud y1ng l e1 it
prepares itself to mak war profits as the U ~akers ¾d iJJle10 behavior Y the statute books,
. d . e democr ntted S er • future Act on ·
m ustrtes have not be . acy safe once ta1es chart(heir "th the Johnson h ""organs
1
would again
F,veo\vl 1· that t e v.1 h
bills to tax the profitsen nationalized, as they have~ore. War ance, nable to be ieve d ingenious enoug
out of w 1nFr isnotunr~aso u h to finance a war an
the next war and sinu"I ar, 1et the peopJ ance; atriouceno g . .
ar measure e vote
by our best thi k s are laughed on beiindwaysof doing it. k out in 1914, Pr esident Wilson
n ers; General Hu h out of school
all about wars, tells us th t b g Johnson, who k w ;heo the World V:adrbsrot es to be neutral in thought as
b a t e profit . now! d the Unite ta e d b an an
t em. And there we are b k h motive is what w· admonishe . oniLion was irnplcn1cnte y -
al • ac w ere we . JnJ
most nothing to show for .were in t 916, with wellaJ deed, This adm D tmcnt on August 15 tliat,
C . ' our experience d t frorn the State epar •
omm1ttee s excellent study of it. an the Nye nounccmcn d ,vith belligerent nations,
But there arc differences between the w .
I . ••
while America08
were £-recto tra c •
f
.
• m nation arc 1ncon-
''Joarisby American hankers to any ore1g . . ,
and in 1914: the world i h orld stluation now 1· " Th111warrung w,ls
f ( . . s muc smaller; the individual wcl- &is 1cnLwiLhthe true apirit of nculra tty. .
are o every nation JS more closely hound up with that of aLfiraLho11ored
.
- Amcr1can 1,an k fl wc1 .c 1Jot catrcr
,,
at that tnnc
t h e rest of the world.• Nazt
fo . · G crmany 111 . a more fonriidahl c to makeloan~t.o the warring 11a1ic,n11. rJ'hcy w11ntc<l to know
c _orfrccdo1n than Imperial Germany eve, WHN. ' f'hc:Neu, 11101cdt·li11ilelywho ~va11 going 10 wl11 before hac;kin~ ci lh c,
trality I,aw, drawn to cou11tcrac t the Jure~ that drew tilt hw'At. llut hy the fall of 101,1 ordc111w<·acco 1nl11g 111 f1111t,
United St·atcft into tl1e lr111twar, did 11ot fit the Mit1rn rlo11of :111rl lm11k~
1111' , pa1tic11lr11ly J. JI, M or!,(1111aucl (:un1pa11y, wt:r:·
1985 ro '0!:I'), ' fh e John 11onAct, for!Jiddl11g JoanHto dchror 1111xlu11" tu nir1kr 101111", "l'o IINC1hrl1 ow11<·xpr,:N~io11,b111u
11nrlon 11,hn,J elimlurued ontJ of tlie factor11 1't·Npo11Hlhk for nt~~ w11~f{oiltl(1110111111tl11•111 wh,·11 It u1114hl10 he• 1411ing
t·nt11111-1f r,mrnt of th e (Jnl tt<I ,<,1n1r11 111rllt Woild Wur. 11111. ( tl1ru1111,h 1ht,111,' l'hc Mor1,1n11 l11fl11t•1H<• 111W,1"hi111,1;1011bc·i1114
otht1r111cn1nl11rd, ' l'h t1 pn1·nllr l hi•tw<•< •11 l!/17 1111d l(Jff9ra11 whatIt WIIN, h wn" I\ 11•l11tlv1•ly 11h11plr1111111,•1 101 tlli11pi lv,1tt·
ht' ovrrd1 nwu. 0111.th ru 111110l'f' Uffufl ro1ovriloold1111 It,. hu11k to l,lt'I pr1111IN~l1111 1111111lht• St11tr l)1•1n11'1nt•11 1 111111,1kt:
1111111
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11!:1 11111 cll111 l1tclt•<
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11
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1,111111 11111,1 1r1,1•11trdu•vlc•ivur ,vh111tlu•y did !1111 111~1 di11r lo\tl hy ( )111111N1• \111 lt11h11ll l ,1111al111i1111th1• S1.11t•l)1 •p11111nr 11l
th 111
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11 1
r ll1," 11 1 1h11 Alllr•, ~1111"'1111 111hllhl' N)1' l :11111111i111•r 1h,11
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~ltiil"ht ,v,1• 11,1~1·1l111 tht• 1ln1r 111 1,11•ti11h11111,11i11Hlot \Ill"
1 11111 111rtlIhr pt l'MS\\'Ith I hfl all •I)' ti Ill I t ltrl, p1 ,. \ \111ild,~111; 111
11111111 • ,111M1• I 11111
\\,, h 111 h u •h,1111\111lt1 \\'1111hiHijll'll " 1h,11 hr ,11\lhl
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(

f
 stJ'fLERS
-rJtE drnitted to the Nye
T}{.E PRESSURE BOYS
't J. P. Morgan a l that it did
see people without mak· 1ng any p bl. t of 1 · r 11eutra -
days later, R. L. Farnum '"ho u 1c notice of it " -,.. anited srate:i;; his firtil was ne;:t to promote the Allied
• • seems t I · ,,
same status ,vith the National c· B o lave had abou vo cornini'.tee ·t could frolll the very sh'ghly profitable cause for
. f . ity ank . t the tbJOg1 ·- 11 ,vas a 1 •
tn ormauon. Lansing told both ' was given si"''l
o
f th· men that "
1s sort (for extension of commercial
. c an arrange-
ar ~ I ever'/ . h incidenULUY• .
wb1c ,
cause, d 1·n which, on
ce 1t ha
d taken the plunge, its own
.. h blockade ma e 1
d ·t
d. "'ent firlllan • d up. The Br1t1s
to be submitt~d to_ this government for itsr: i_ts~oug~t not 1
t ie ces were ue
has already given its views l . p1n1on since . vastresour · h Germany. . ·
1. on oans in general " tt . p0ssibleto deal ,v1t d us advantages in their dealings
exp a1ned that he was conveying • "indi v1.d uaJ imp . · .Lansing un h d trernen o
. 'fhe Morgans a All Washington doors ,vere open to
th
ga ere d fr 1 t h e p resident
om a conversation w·th . tess1ons" 'th the government. . . The tremendous war
. .. bu w1 h •r representatives.
aut h or1zed to speak for the p .d ., ' twas not
h . res1 ent. In othe thepartners_and t e1 elo uent argument for extension of
w at Lansing said, in effect was· "W I r words,
. ' · e 1ave announ d boOlllwas itself. an Andqthe Morgan bank had more subtle
policy but you go ahead and do som ti . ce one h e ld
Lelling us about it." e ling else without eredits to the. .Allies. When the State Department
waysof bnnging pressure. House of
Thed distinction between commercial cred1·ts an d Ioans out against loans to belligerents, for example, th~ d
prove to be a co1nplete phony. Credits came to mean Joa Morgan, ,vhich had spent $154,000,000 supporting poun
Bu~ the public ,vas not informed of any change in t~i: sterling during the prior six and a half months , suddenly
1
pohcy, and a~ late as January 20, 1915, the Stale Department withdrewsupport and let the pound tumble from $4-7 to
told the chn11·n1an of the Senate Foreign Relations Com- $4.51.But after a $50,000,000 Anglo•French loan -the first
n1ittce th at it ,vns still the policy of the United Stales to of mnny like it-was floated, the pound ,vas brought back to
forbid lonns to belligerents. Not until the (ollo,ving l\lnrch $4.767/16 and k.cpt there at tremendous cost throughout the
,vas tht·rc an}' nnnounccn,ent of the shire. This secret chnngc wnr. By allo,ving the pound to drop off at the psychological
i11polic}, desil·ctl by the l\(orgnns nnd urged upon the State mo1nent,the lvlorgan partners demonstrated to the govern•
l)t'p;,, ·tn\t•nt by their rcpt·csc11tntivcs, clcnrcd the ,vny ror mc11tthat the booming ne,v ,var trade ,vas a splendid thing
p1ivate lonns of $a,rioo.ooo.ooo to the 1\llics, about $1,900,• to keep. Finally ,vilson dl'opped the "commercial credit"
1100,ot.iu of 1\'hich 11~.,s e'\.tcndt•d or 111nnng-edU)' the i11org ,u1 diSlinct.ion nncl permitted outright loans. This action in
. .
1ntt'1-esti. p1101· to this country's en1ry into the 11'llt'. Even·
' Scptembe1·,,9,5, came ,vithin eight dnys after a conference
tu.ill), of Ctl\ll~e.the door to c,tcnsion of ,1•11rthne credits between a 't11organ representative and Secretary of Treasury
1 i\lilli:11n Gibbs ~lcAdoo and eleven days a(ter the pound
,,-.,s thro""' ,,·klc open but not until it hnrl been opened ·
t'l ,tl·l:. stcalthil} :ind ,,·ithout ,Ill) nnn(Ht1lcedrhange in iht' I h11dfallen off.
?II01-gann.nd Compnny also had its inside contacts in Con-
\\'ils1,n .\d1ni11isti-.1ti\1n'spolicy 11fncutr,tlit).
gtess, H. P. Davison, n t.[orgn.n partner, ,,m able to report
Tht' t\ h 11~•\I\S ,,doptt'll , ;1rit1\1S1nt•th()(ls of pcrsu,uling th e to the firm's t.ondon represcnt,,live in 1915 that Senator
~,,,c?t\tl\t'l\t to~ thin,~ its \I'll' in tht• t•nrh d,1ysof tl1c w,tr, I Elihu Root had told hiu1 there ,,-.1s "no chance "·hatc,·er"
th
"he,, \\\ iodro,\" '\\ 'il$\)t\ "·,1$ still tletc, 1nint"<l to i..ee-p c:

I
r
 oTLf.ltS
l' H l' I'~ 1-:8~•I~," 'ftlE s ··ush into accepta11ce
'''""l\\1\S force tJ1c B1i . of con·
r,,,c"ll.\ftlnt'l\t \'>{ ,I hill .tlltl'od11t·t'l.t in I
l'- . cl earth to . that ca11cellauon
,,·.-tdt·nt ,1u1h\,, it\' t, I ' t It' llous, , t . 11c:11·t•t1all 't ,vant, arguing ,1'tl1 An1erica11 banks
. \ p .\('( ,111 t'lllh , O ~l\'t' L 11ct I di'dJ1 · bad '\ ·
,,tt. t ,\ll\1\\\U\lt i,1n h' }<' ,1111-11on t''l(J'o tne 1111 . chL')' Allies 111 l roe ti1ne give
. '"''Pt' dnrin ,. ti
l'h(' fl1,n$t' ,1f :\(or~.1n p1,,fit
tx,ntt't' t,, ti•-- \II ' 'l
f rt of n
lt' Con~'ft•s.•io11.1t
t't handson,(•l, · I\
t;11u
c ess.
11
t r,ncs t the
• ,~o11ld SC ·n companies •
tf,1rts ·d in the r1 c . . 1t n1cssage fron1 a1
. aild at t 1c sa ·
p ·ulers Tl101nas
. on·
' ' '' ' • lt'~ lllt '\ • , Ot 01\) jnte~•stc c,cr111nt1Y• A JO~l }I. p, Davison, t11en in L .
l'..rlt,1111
• ,
,Ind 1<1 -.,n('t' lts
' · ~ pun ·hns1n,. .
. ' g •\~-ents for " ·
v n~
to d D"•ight ].\Jor10,v t~ nounce1ne11t tl1at Ameri·
t' . , p111-c 11:is1n~· co1nn1is~i ,,1·eat ,0111torc
'\ ._ I!),~)\ ,tj9 fr\\tll (: l"t"\t l)r't · " Ol\S :\1110111\(n.l I J111ont on d out that "a public an . the manufacture of
Fr. · · 0 1 :un nncl $ 1 , 0 1 "' ointe b . ken do,vn in . d
,\l\(~ IX-t\\'t't'I\ l q I lj and l na I Tl i\ r o, I~ • 75 fro111
l . • . :,, . ,e t o1-g:tn c1on,,;,nnufac111rers bad x~ t the Gern1ans. They point~
t· 1,1sntg C\"1ntract"'ith Gl'f.'nt Britn' T ', s got their pur. c,1t1 Id be encourag ing o . . t11ese companies
, • 1 11 nnuarv 1 i:
ns ,\ rt'\1':n'd fur helpfulness it' s 'C • •• . .>• 1915. p,1n\y ril\es"wou f the banks ,ve1e in .
• ' ' c lit ing •\1neri too that some o " d that ·1 cancellauon ,11ould
,in d tht'tl' t''Ontract \l'ith Franc:-cti,' ""-11" . • c:111 credits. 01 ,It ' . gnl limits an ' <
• • • t 1u 0,1•1ng 1 en , l'l •·1,eyo nd then· le
took. its pt·ohts ,going nnd ro1nina~· F'1rst, it. got '
a. co
}, \C firm
. . be disastrous. . v1·rtually demanded that
on rnut·h of the $,...000.000 ooo ' h f , • n11111ss1011 ·'Re co1npan1es 11
. . ' ' " ort o goods ex ported In the end th e 11 . ,vhich ,vere genera y
the •\Hi es tl11r1ng the years ,vhen the U 11. 'd S
ttc tates W'as to a ·•
the Britishta e
k. thClll over Oll tC[lllS
d the British gave in. J. p.
1
neutrn . Then it got a cut on the lonns flontcd to "in. •
th . 11 ance r~"COgniicd as unreasonable~ an ' th Prime l\ifinister Asquith
1
ese _pure 1ases. J\nrl finally it got in on the profits of the Morganhi1nsc1C had a ineet1ng w1 . . ,d that the
.\in er1ca1, cornpnnu.'s selling the st11CF. Its position ns bnuker, and the ,,varCouncil in Lo11don and iep o1le d l ,...
. · "'S , ,as a "ru e s 1oc....
purt'hnscr a11dseller, nll at the snn1e ti111e,gave it trcn,cndous propositionof the American cou1pnn1"' ' th
ndv,u1tagcs over rivnl ,vnr profiteers. to the British, "con1ing (ron'l ,vhat they supposed to be e
Th<'rc \\'as the cnsc of the th ree big rifle co1npnnies,for bestconcernsof thc1r . k1nd . • l
111 t 1e ,vo1 •
·ld " Nevertheless, the
('Xan1plc. Thc:ic fit n1s, '\Vinchcstt·r Rt'penting A1·nts, Rt•1ning- Britishbought $30,000,000 ,vorth of gulls they didn't ,vcuit
1on Arn1s - Union l\fct:tllic C.1rtridp;c llnd Rc1nington Anns 10 keep the bankers happy.
o( Dcl:nvarc. had cc1ntt'aC'tScalling for 1nu1111fncl11rc or Uc£01 ·c tht• United Stlttcs l'inally got into the ,va1·, 1110 1111t·
$ 191 ,000,000 \VOrth or rifl<.·$nnd b:tyon('(S for the nritlsh ing Uritish loans bcl"an1c a 1u.1ll<t'' of g1avc courcrll t<>tht•
nncl nlrt-ndy had r<'<'l'ivt•<Iadv,ln<'t' p11yntt•11ts of $r,o,ooo,ooo ~l01R,1n bt1nk. l)l '~pitt' 1l'pc:1tcd ur~in~s lrun1 t h<'il' 1\nt c-1h an
in S<·ptc111h<'l,l!)tt,. llul thC' ro111pa11itsfrll so far hrhiiul htui\..t•\'ll,tht• Utitish t'itht't' roultl not 1n \l•u11hl not ship ihc
in th e-ii or<lrrs und ,vt•1·cnu1ki11g so 111:i11y A·uns thnt f11i1Nl Rnldnr ~ell tht• st•r111 ltit'N n<·11'8s,t1·y to l..t•rp 11p rhl•ir P111
to n11·11s11r<' up to n1iti~h st1111d11r<ls 1h:11dtt'Y ,vt•rc•1h1c1irruccl ihnsrs l11tht• \ l11l1c:dSt,1lt•s, .ind it h<·1-.1111c 1•,tt<'lllt'I)' tlilh
,vith t·o 11t1 ·111·t<'ttll<'l•llntionsinvolving 111illions of t111lht18• Clt\tlo lloat 111111< • hlilllll t,11th1•111,\ 't•I ,1ny 11•~~.11iu11in ,\llit •d
11 1011 11111·rh11~r.i ,vouhl h,IV<"hrt •n , 11i11on~ 111ll\'l'tt•,p,111tlt·tl ,\1111.'I i
1'hr l\for1-11111 1,,,nk had 11$ 1,onn,ooo i111c•1 ·cHI in R.c•111i H
untl $11,,100,000 111Wi11clit•11tc-t •, ()thr, · hank~ .,l~o ,11<•rr ltr,,vlly tun lt1\h1M1y.
' l'h r 1111ly,v11y till\ \\•tis 1111At111·1It ,1111lc·t h11,1tit111111 \Y,11,
i111 r 1r~tr1l 111tht• r·o111p11nlr~, ,vhich ltucl rxp11111lrtl,npldly 1k
11 'l'h1·Nyr t 111111 111i11rl:' 1•vh\r1ttr 1h,11tht• 1\1111~,111 h,11
1'11111111
to take• r,tr<' or 1hr llllfi Nh 01<1c111. ' l'h c Mr111-11111 pai·t r•~
 219

218 1a£ su-ri..i:itS n t11e war, and '"~

. TH.E PR.Essu uld have ,vo an colonY•
was infonned R.E Boys rnanY ,.,o b en a Gertn h d
G some consid (bat Ger ne:,ct and e . of po,.,der a
ermany \Vere brok erable time be l)ilities are been taJ-en . WhY t11e price dividend is
~plied. The commi:~eo~ that this soluti:r:v:l~ions With u!dba"e . tic serVlce- 58-per-cent h
,\'O alla patr10 l to yield a 4 I . n't nice. T e
ce was given advance . o concluded that Sir a ~Utto be It was • h enoug 1 ask.ed. t is . th
ference ,vith McAd . information. La Cecil Sprin be J(eptbJg . ns better not . cing too, if e
00 in Janua mont, after g. to quesuo ore conv1n ' l .
ury would soon float a ry, 1917, kne\v that a con. e of t.1tose ld have been fll d ponts sold t 1e1r
oIl . ,vou h t the u · I
purposes. Out of th. $1,000,000,000 bond . the Treas. e,,-p1anau~n h d not sho,'lll t a d. egard for nat1ona
subsequent . lS, the first of the L·b issue for War . uon a "th a fine isr .
issues th . 1 erty L invesuga they could, '\\11 For example, in
where1er d fter the ,-,ar.
country were paid offe Jnvate debts of the Alli~a~s, and ~:ctions both before an aibusuki their agent in Japan
Treasury was left ho{din; !:nk;rs ,vere bailed out a:a: dil painted fl. fl. h drogen proc-
still holding. e ag for the ,var debts. It : 1925,they ap 11 he Japanese a secret y
andproceededt~ se t the State Department. p. S. du Pont,
Although th e Morgan partner . . ~ with the bless1ngofd their. messenger, Senator John G. .
stand that the financial . . f s ms1sted on the witness 1,ammot du Pont an 11 d t the State Department in
B . . cns1s o 1916 did
~1tish could not pay off their debts in ~ot mean that the Townsendof Delaware, ca _e. a . the Japanese for
Rice stated that the E . this country, Spring. a bodyto arrange for perm1ss10~ to equip
resources in gold and ::~:e :ias then_ ~t the end of its the subsequent invasion of China. k
by the Am . . . eta e secunues and was saved In the postwar years, the du Fonts scrambled for mar ets
American :~b~ declarauon of war from defaulting on iu [ for their military products wherever they could get them
andby whatever means were necessary. Like less respectable
2 companies,they used "palm oil" and "did the need(ul" -
in other words, paid bribes-where this seemed necessary.
Another firm that did as well-or better-in the war than Thus they were able through one Antonio Carames t.o
Morgan and Company was E. I. du Pont de Nemours and delayindefinitely construction o[ a powder factory in Argen•
Company, of \-Vilmington, J)elaware, which wld the Allie, I tina because they wanted to sell the powder themselves.
and the United States 40 per cent of aJI the propellent pow- . Other munition companie~ al~o have played at interna-
der• they wed from 1914 to , 918. The bill Clime to uonal . ·1ntr1f(Ue.
• The Jl.ler.tric Boat Company, which controls
$1,049,888,789. Profiu to the <lu Ponu wc,re $237,908,ZZfJ· 1"'41 " pawnt8 on ,11hma1 in,·~, not only build1 un,lc·rsca
I)u P<mt stock ~'Jld at $125 a ,liare at the start of the war <raft fC>r• ti1,. lJ nlt<'.<
. l Stat<·~ Navy, hut al110 pet rr11t11 . use of
and $::,93 at tht: end-a 374•fJ1•r-aot in'-Tnnent. JJividrnd, Ic•
~ 1lr•Mgn11-
· -fr,r •,1 c:on~IC
• Ic·rauo11
• 1,y any nauon • •111the wor Id .
paid duTing the war arnouritt:d ti> 4.58 per cent of rJ,e r~r .c1n1m:in1lt> r J1.. r.. C,<J<11r;1111•" f t 1t<' 1htil<'d Stat1•11Navy one"
11altu: of the •uxJ:. I1~11 1111>It rnl"rIty to ,·,1mpla111 • 1hr11
. all th,• l111p1uv,·rr11•11t11 <Ir
J~ut? at Jrl.·n& ,Ju 1',J11t trJld thl' Nye Ct,1nmittec:"Jf w_e v~t,,1H·tl l,y 1111• Navy it•u-lf wr11• h:1111lr.1I 1,1 Ji.Ir, 11 i, Boat "011
11
had r.11.lt1hiJ1J.ied1;1wd1·r ti, Frariu· arid f.r1~fa11d,the fJf '' I
 221

2!?0 ti:E su'fLEitS . ;., apparent

-r But1t- .
£ the United States. d in sales, not 1n
senateo e intereste
d the ple wer
i¢11taD ·0011 peo dl as they
i)le IXIIJlll bolehearte Y, .
tlJ3.'
~ NaV}' CV"
,.._,._peratedw · b"ch are beav1ly
W 1
~ .\J1XIY aod • unition coxnparues, Concerning the
'fht • •th the 1ll ~ officers.
.-;do, wi A...-nv and Navy "din a rePort
21•.,r
.<f.<I"'-ith
{orlller tu-, w.n10
.
resoluoon,
Sixnons sa1
. t the request
S!Jl'"'.:~inst the ernu... i,- • the business a
:.ht..,,~ office"''\\'e are 10 . fight, not ours."
~ tile botne aod;avy, and it is their l es to be s,vayed by
, the ;\J1llY • all ed themse " h
c;t tl~ the do Pones oW • ,vell illustrated by t e
iw- .:i.-ina- the war 1S th em to
......
tx!l" r-.
mousm .......~
ernmentin ttyUJg. . to -~,<>ile
~•""- • . d .n
--ifflCe of ~ th United StateS 1oine 1
~- _...r1 ·ona1plant after e
i,cild :m auu D ff ed to pay all the expense$
::.ea,mlia. The gO\"ern.oient o er nTofit and then to
. to advance $1,000,000 r-
d (llWU'DCtlOO. b. tion Yet the du Ponts
::,,:mr:iinefnnrre profits by ar itra . th5 because
&byal the staxt of constrnction for three moo
. did -..:.l- the tenDS satisfactory, Pierre du Pont
c:q not
u,u.»UCL f dir
aylaiotd at the rime that members of the board O ~ctOTS
ox:Jd not "'aS5C'Dt to allowing our own patno· tism to• inter·
fae with om duties as trustees." Finally, after holding out
~ I.be gm-emment threatened to build its m-,'11 plant.
the du Poot: :Engineering C-ompany built the factorY at
rl:r Dill iz:, ~ tl to aJW a:&er meSenate bad 000:
-
Z! i - ::s;
pssaI
-
i=.. Fer rhis sp1cacic senicr,. he received a. ca:x:-j•.UO-
:'°"couocm exptnse and made a pYOfit of $1,961,56<> on
ia operation_
tm .cy .. ;.c: Em L A.. Oxfd. no nti•e secraa:::; octhe The dn Ponts were not alone in demanding exorbitant
_:\;;, :• ~•lZtfllt:C !\aoi iarioo· ""Hzrs rii. to ffJU foe !OW ro:zg- P:olitsduring the war and going on strike if their t.emU
-
niSc er; s: 2,a! an t:lz. arms emh.1 oo lezn]arion ..-
.,,,
.\b-rr ill emsrlle !S'¥C Osnn,iuer obse, scd: ""Tnere 11'2.S
•tte not acapwL The copper companies. which at the
time were producing for an average cost of 13.6 cents a
lo 5iki r.,lr fX tfle jXCWl:t' and U5 e:ffet1j\/"Ol'S'i in dda~ P0and, IOIDe of them WTas little as 7 and 8, held out against
-
;-1-;c1. .-.011D,gu■1,
- "I>
<Jilt -
l\"i11rlcarr, Colt, and TL"-*<WTI
•.,~- ~ a government ofle, -,f 22 cenu a pound despite the desperate
rid§t- :tg4!nst a meas.uc: &-sgnnily in the iuraest:S of peace ~ of the Allies WT their prodoct. An official of the Ana-
and •oa ■ Bo• ,..Jedas mch by the Preridcnt. the State J>epa1f• COQda Copper Company w,ote that "it wou ld be impouible

r
 'l'HE l'Ri:ss u R~ ,•111' st
)'fl t,RS
·s 1l'll',1st .!I
, lll
to obtain the Yolu ao\ s · . •11d v\11 P' t•:;. y 1
111
near" <'0-0 clt•h·g,1tlllll, ll{ . tth1HS ,111tl lip •
o,,,1e1-·· if the .. }}etntion of th
u n,,.A p1ic-e,rere fi.,l'd . e-n1aiorit. \111t•nt,1n •til'all olg~,1111,. 'th thl' sl11p
Pr-u to ~3.5 cents. It ,lt i?l? C'ents.i-- · \ of l'lli11~ . '1ht' • . . . ,\lilt ''llllll ,v1
1 ull\111i; r p,1t1ltlll( ••' llis f()t\llt:( . ' Sht•:\\C.'l,
Jud~ .E t..r '1\-as u1uc:-h h 11,111v• I 111ttll'tl I• t"Vllft•lCC~• l,,.t•[)l Sl'tlll-
~ . o. Gar, e:xpl.tin ·d .. t e s,1n1e,,·ith It ,,~~ ,111·. 'tit'Stlf I It of l'O\ll'Sl', L\ 'Cly or thl'
'
reasonable profits in ord c . n1anuf:lc-t1n ·e1-s steel. .\s ,ht,1r1111 , inies "',ts, • to 'V .,11.1cc l .•
.
C O-Operat1011 hen,· er to do th . . 11111st h ro1n1. ' .,1 ,cst•1nbl,1nrt .
·11li11!1 . 10· tht' co11fc1clltt:,
en• d1tt, :· ~,~ ~111 , ,1,•11.. 1.:, • r . ths1upl 11 C'I
. .
m un1uon 111 ¢en the go, 'r •hi bl',,,sn . . . l,.1.•11credit tn . .. o[ the oppo
:ikers h· 3 t: nn1ent :tnd t1 II t I nl\\'I)'~ (,I u· ' lr1ss th \lln •
' ,lS 1''.t\'S bee ie Pli1';1
t h e ,,-ar. for <''\J.1npl~ h n a Ollt:'-\1-:tv :in:..• tc n11111(s,i:1~• ';1i111srlfns "tht• ,g .. the 1,ig 'l'hrcc :1ltel
t: • t e .-\rn1, fo d · • u,nr. ·\ft
po11uds of surplus rv> ·d un itself ll'ith lloo ""~ er rh,1r,11 :1c1''."'SI lc bitterly turntd 011 ·lv1ft' in~ t h.11 thl'Y
s . r•·'' er. a l:\011t "'O ooo '"""·00o ·,1·11111to ,1. ·011~ ,l'ith thc111. c • c, 1·01·
~t~red at the Old Hick.or, Po11·de1·P~l , ,OOo poundsof it .' •ringhis rot 11
\ t.'Cll ~
. . lo p:-t)' hin\
$ 25.00
O ,·t )'l':l l"
nuned rLOrn11·1·lt-lr) purpo..~es but still ant. under" ,tic ,. • • their prounsc .
nsef1 ':tter. It w:is tJiledto ..._tcP
of l.1cquers and other ron1u1e , l ti f-orn1an11£act11tt ten,c;1.rs. • hi builders p:ut · \ Slic...,t·c,· $7·•.r.,ooto.
,.-ho had sold it to the . . rc1a products. The du Porui, .\searl)·as iu~G,the s :11 . viding for construct ion or
go, e1nn1ent for ,.. • ,
boun-ht it b.lc'-. fo O
-.:, •:., ~nts a pound, lobb)through Congress :t I p10 t·r.1ccl tlt·'t he ,vent to
o r 4-- cents a pound. :\I:ison and Han r sub- . · ·rs Shearer tcs 11, "
oont~ctors for the du Pont Engineering Comp:inys;:,· con- dght 10,000-tonr1u1sc . '.. ' in 1926 at the rc<iuest
iheprtli1nioaryGcncYa confe1cn.cc ' l \V·1r
strucuon of ~he Old Hickon· Po,1·der Plaut. char~"edche of ·\dn1ir:il\Villi:11n\'eu,.ic P1-att. President of the N_a, ,1 , r~t
g~,-emm~nt ~2 1_.000.000 to build a \'illag-e and short spur CollC!!C,and th:it, iu addition, the Navy gave h1111 sec
r.ulroad in l\-art1me. These facilities '\\·ere purchased by the d.lta;o use at his discretion in his atten1pt to break up th e
du Pont Fibersilk Company after the "-ar for $650,000. program.H. R. Iltnnphreys, another shipbltildcrs' lobb~isL
at the preliminary conference, reported after a talk ,,,i th
3
Adn1iralA. T. Long, one 0£ the delegates, tl1at "tl1e yard
hasnothing to \\•orry over anytlung drastic being do11e at
Ho,\-eY"er badl,·• the 11-ar industries beba,·ed both during the disarmament conference."
and after the 'i\"orld 'i\"ar, it \\'aS the big shipbuilding com- Shearer, according to his account, put on a "fast and
panies-Bethlehem. Xe,,lX>n Ne\\-s and New York Shir '?cious" campaign at Geneva. The shipbuilders '"ere "de•
that set the pace for do"-nright hoggishness and lobbp.ng lighted" ,vith his "'Ork he said and sent him back to
\V . ' •
boldness.. They went so far as to trr-and n-ith some sue~ ashington,..,hen he returned from Geneva. His employ-
-co sabota,,,ae an international arms limitation conference m~t ,l'ith the Ne,vport Ne,..,s Company was not terminated
in order to preserve their prospective pro.fits on $53,744.o<>O ~ul 1 929. That year he "'tote a vicious article called "The
ll.·orth of contraets for new ships. l\ "I Dloakof Benedict Arnold" in ,vhicb he attacked Franklin
The companies sent '\Villiam B. Shearer, former a, th Roosevelt and others. He was paid $5,000 that year by
officrr and fanatical biu Xavy man, to Geneva to set up an e Hearst press, ,vhicb ran his piece.
o . niorts accom·
establishment where he could entert.aLD ex,--- C. L. Bardo, the President of New York Ship, explained
 'f~lE
-rtJi.RS
stJ · Ja-cs J3arncs-
by ...
'flt£ l'RESSlJRI!:
. Washington "dent's secretary,
that Shearer was novs d 1n ( I e p rcs1 . f .
. ., sent to G rcprcsentcclose friend o t, ·1ding companies 01
teport, but Shearer . cneva n1erct L ..
structions that obviously didn"t y o obscive 11cre
con1P',1_1y~ and a . ·ted the shipbUl . fred Britten of
men cut his fe:~YT:;:ther \Vas he satis~::c::1\anct hisa;:;'. siilln~
uvNfcJntyre -s ?llCl for Represent~t1veC rnittee, wl1en
committees indicates tl mony taken by two C en the shi11 ~rarv•~contribut1ons 1e Na val Affairs om
;.1n1pa1gt> irJJlanof tl . on in J 932. .
with t11e shipping com1at ~hearer, keeping hisongressio'.1a1 111i11ois, cha oning for re-elecu eeded in securing the
Navy officers, actual! p~1es secret and co-o er:o'..1ncctto11 thelatteri\13Sru Y-orkShip, . once succ
. to the
N ava 1
conference but b y did_ ~uch to disruptp d ting IVith of NCW R presentat1ve
Bardo, f a [-riendly e Q Tilson, then
h l ecame a v1ct1m of tl
e 1ad first served Th . le same sort of .
le Geneva . cnt o
ap1~1nt1Cno01rnittee
r to John ·
by appea ,ng H use Upon leaving the
th · e companies ili Plracy O
ey were through with l11m . rew hiin out , I \lflltrs d f the • • cl

- sprea d rumors tllat Shearer

tr t d B
and t • .
, o Justify themselves
was pro-Germa d
v ien

'
~epublicanfioor lea er_ o Washington
c1ouseTilson set up in
as a lobbyist an
. s on bis own. Later, ,Axel
us e • ut between the
Shearer ,vas paid $3,000 t:~e~o~;re;ce_
payments of from $r-oo t
O
n an not to be
a~~ 1929 when
him, he received
r

l
worked
'
xf
h" · g comparue
for the s ipptn
d man connecte
d with the Tilson firm,
Grave~,an 0 , orffered to get legislation through Congress
York Ship also paid ~. $0 $ 1,ooo ~very fe,v ,veeks. New
im 5,000 during iliis period. In one
year he ackno,vledged receipt of tlle entire $'05 ooo
l
was!"d to hHavee
for q25,ooo.
wasnevertried.
doenied this and was cited for perjury but
·
k L d
As far b ck ..,, ' · At one point the big shipbuilders retain:d Fr~n or
du a as_ 1921, Shearer told ilie committee, he con- th
todo their lobbying in Washington . At various times ey
. cted a campaign at the suggestion of Admiral Land to . G ver
workedthrough Mayor Frank Hague of J ersey C 1ty, O -
~crease naval pay. He said he accomplished this assignment
111 tllree months by using llis friend Ira Bennett, editor of norA. Harry Moore of New Jersey, John McCooy, Demo·
craticleader in Ne,v York, Al Smith's angel, William F.
the Washington Post, as his chief propagandist. Later, in
Kenny, and other boodle politicians, to apply pressure to Con•
1924, he fu r tller boasted, he was shown a secret order for the
gress.In 1932, the Democratic National Committee created a
sinking of tlle battleship Washington by an officer he had
specialcommittee under A. p. Homer to solicit campaign
never seen before. On tlle basis of tltis information, Shearer
contributions from shipbuilders with the understanding
undertook to delay the sinking of the ship, contending that
tbat they ,vould get political favors in return. One shipping
the arms limitation treaty then in effect did not require that
manexplained that the idea was to keep members of Con·
it be destroyed. Hearst financed this effort.
d gressunder obligation to the companies.
The small ship companies, too, had their lobbying ao
'Id of Testimony shows that Anning S. Prall , Republican Con-
propaganda methods. The Bath Iron Works, bu 1 ers
~essman ~om New York, literally s~ept with represen~tives
destroyers, deliberately circulated through the Guy P. Gan- the Umted Dry D ocks Corporauon and received his re-
e pre·
nett newspapers in 1932 a story that the Japanese wer Ward s f or d"omg so. J. W. Pow ell, president
. of the company,
· tended to
paring to attack tlle United States. It was in . sent p rall t"'15 1.50 a month regularly to pa y half the rent
counteract disarmament sent im ent. The Todd Shipbuilding

{
r
226 'fLJ!ltS
THE PR.ESStJR.E ll TitE stJ arned he said,
on ~is apartment at a Wa .
he lived with Prall
fair to h
h
w en m the capital
ovs
. sh1ngton hotel .
, explatnin
I 5epatof,
for '" I1
o!ll the legts a
realllble an
. 1 tion ,vas n
d the gen
,
eral provisions o
f

pay alf the rent. Th. . and thoo..h _& that fb' owYthe p t of its eye teeth
was wan 1· is was 1n 1 <> tit
!l'fote overnroent ou d
g ing a contract to b "Id 933, ,vhen l) only
Pow ell also saw t . u1 destroyers. ry D0c1<.s sectioll l• skinned the g f Washington cornmente .
0 it that Prall' ,,.,,d theY ...,..:Bone o
company's insurance busi s son got som f>'" }Jo!ller ~ . ·1d
"senator did" said W1 er. . Th got
mittee also found a I ness. In Po,vell 's files th Ne o[ the ... they , the Big ree
etter from "Ann. "I wouldsa_Y also discovered that etition
for a campaign contribution. Powell ing" making a
however, that lie refused to d
e yeC
to::
told the comm1'tt
1he co!JlJ'Illttee. at there ,vas no real cornp
er on their bids so th ch t marine contracts. There
onate. In I ee, coge th h. or mer an b tl
P
ate, owell said Prall h d b " a etter to an ass . eitherfor battles ipb'd for three ships ,vere opened y 1e
. a een extr I 0Ci-
1n all our Washington b . eme y helpful to scillis none. When. I s f nd that each of the Big Three
R usmess ." me . 38 it ,vas ou Ii .
Navylate ID 19 ' . b'd for one ship, thus sp tnng
obert Malone, another representa .
Corporation, offered in 1933 for a t1:'e of the Dry Docks I . h d ubm1tted one
companiesa s
thebusiness among them an
1
d leavina the government no
. o
-to get a load line bill passe; b C contingent ~eeof $50,000
required construction of at l y ongress. This ,vouldhave alternativebut to accept their pnces. d d at the time.
companies. east 50 new tankers by private Governm en t Navy Yards were overcrow l e build ships
.
\Vhilethe government bas a1,vays been ab e to
HA. ]. Joyner, also a shipping lobbyist, reported in 1928to in its own yards at a fraction of the price exacted by t11e
enry R. Carse, presid~nt of the Electric Boat Company, . companies,
private . Navy Yar d compeu •t'on 1
has never. become
that he had succeeded in placing Franklin Fort of New an effectiveyardstick for measuring · ·
prices. The Big Three
Jersey and Joseph W. Martin of Massachusetts now the havepadded their expense items, juggled figures and other-
Republican floor leader, on the House Rules Committee. wisefrustrated every effort to limit I.heir profits. On some
In 1 929, Joyner said, "all our legislative efforts have borne contractsprofits have run as high as go per cent. On seven
fruit." He added that representatives of the Navy Depart· shipsconstructed £or the Navy from 1927 to 1930, the profits
ment had thanked him for his successful efforts to push ship· rangedfrom 21.8 per cent to 36.9 per cent.
ping legislation through Congress. At the close o( the World War, the shipbuilding com-
Laurence R. Wilder, former president of New York Ship panies,verc permitted to ftnish ships already laid down nnd
and at one time an active lobbyist, told the committee that the profits accruing [rom this were not subject to ,var L'\Xes.
his company alone spent $50,000 on "living expenses_"to Moreover,a(ter the war, New York Ship bought frorn the
pass the Jones-White Act increasing the subsidies for private government [or $soo,ooo improvcn\Cnts which had cost the
shipping
$140,000.
companies. The shipbuilders together . sp~nt
He testified further that it was the sh1PP
1
.~f I government $14,ooo,ooo. In one war year alone, 1917, J~u-
gcnc Grace, president of Bcthlchc1n, rt•ccivcd bonuses
lobbyists, including himself, who lvrote most of the bJ ·
I amounting to $ 1,501,532.
•

I
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th ·.u t-' I l.'l~ U<.> \l~ ('I, • .. .>vll ,, ,\t t\\\~ \\Ottl,l bid.ti\\.
l'hs: ~ ,e, •
0 QttuHtt<e
. .. co1t,·lu,l,'l.i th tt in bi l .
U,'1.\\)n l"t)l\trtl.C't~ the;.•s.hipb 'ld • • .
'-"-'>l•s:t: , d111g l,>1:X.111
'\-o' •tr.siOl\.. or •.t .. ' . u1 • e~ t-1ther "·e-1~ guilt) of
• • elep..,th}, ~tupbu1lders achuittt.'d that the,
t p~-d th e 1r pt·tet.•s "ht.·n ,,·ork \\'<ts plentif11I atld
1
h'
l bb · · · , a s 1p
o. y1st \\'rote h1s principals that upon the enactment of a
ship, constrttct.io11 bill there ,\'as a scran1ble for the ''plunder."
'\ hen the P, \' A progra1n ,vas launched, a combination
lobby of shipbuilders, Navy and labor succeeded in getting
$238,000,000 of it for t11e Navy. But the anticipated work
fai led to n1aterialize and the ship companies fought organized
labor as vigorously as they had before. Labor leaderscharged
that they had been "doub]e -crossed" by the Navy. This was
one of the few times the Navy has ever been able to use
labor as its lobbying fTont. But it has many others like the
th
Navy 1,cague, the Legion, patrioLic organizations ru,~ e
munition makers and shipbuilders to do its work for Jt. So
has the Army, which is so close to the du Ponts that on ofc:
O 1
sion it ha~ loaned the company chemical supplies out
. . I . f h I w Arrny and Navy
own war rc~ourCC51n vio auon o t c a · for
. . d rms salesmen
official~ have not hc8ltatc to serve as a don
(ng compensa
rivate C1,mpanic.•, some o f t I1cm acccp I • g on the t heor" ,
P I
for their pitin,J, but mo~t of tlicm honc5t Y goin

(
 GJNJA.NS
'ffl£ v1R . f{oward ,rv.
resentauve ·
. b ·ncrdone. Rep latforlll pledg111g
t is e1 o . e on a p fr
not see \vha election last uro he two Senators o1n
C311ith ran for re· public control. T d pro1.1dly represent
Slll a nee frotll d =arry Byr , d t
·ndepene Glass an >,. flout the ju groen
CI--IAPTER.i4 1 • carter they roust

The v·1rg1n1ans
··
Virginia,
property i~;;~:;~o even when
do so._ Virginia ~o:~::~ty
ofthe rnaJ with all t111s because . d Jb a poll tax la1-v.
rnen a11d Sena-
of t11e adult

get away . di francl1isc Y

Al\tl!'.RlCAN TORIES arc g· { to;;ulation of th~ state i:ilssin other Soutl1ern states but
~l:ut~1_that lh.c governn1e:;tc:r t~1:·du_ent repetilion of the ~he sarne sicuauoi: prev d nderdoo- more completely
scnt,tt tv c (lc1nocracy
(
.l
. ., .
o .1ust1{y111g acts of C
• • not a pure dem .
. '
,ongrcss or more of
iuted States is a r
. • cpre.
oc1acy. It is their way
I nowhere is
. the dtspossesse u
in Virginia.
sterilizedpolitically than l . h Glass publicly
The poll ta."- law, '" 11c
o

de(ends,
f the notion that states-
and
v l< na l CongTcsstnen
• ,v111•c h obviously.•
d
ten, acls o[ indi-
habitual acceptance
by the voters o
1 ther than their servants,
OJ)inio11. Tl1c theo1 ·y is tl at C o not reflect public
,vhat • . . 1 ongressmen kno,v tnorc abom
•.• is. •good {or tl'.c cou~1try than their constituents and
tl1c1cfo1~ n1ust exerc ise their superior independent judgment
I men are the bosses of t~1e peop e ra
frequently produce ludicrous and appa
. . cl •
llin results. For ex.-
g
ample,Glass and Byrd can operate one of the most t1g 1 _ y
· the country while
. l tl

(>tl occas1011 to save the people from themselves. At tin1es,this knit and toughest pol1t1cal ma 11nes 1n .
theory is att1·activc, as when Congress turns dolvn such an ill• posing as heirs to the traditions of Jeffersonian statesman-
co11ccivccl schcn1c as the To,vnsend Old Age Pension Plan. ship. No one can deplore the sins of Tammany Hall so fer-
More often, the Congressman '1-vhoexercises his independent vently as a Southern Senator, but actually the principal dif-
j nclg-n1cn L in (lcfia nee of the public will docs his constituents ference between Tammany and a court house machine in
n clissc1 vice. 'J' hcsc cases , however, arc not ahvays easy
10 the tobacco country is that Tammany passes out free coal
recognize. Consequently, the fighL for democratic govern· and Thanksgiving baskets to tl1e poor. The Virginia machine
. I U . d Sl L s and the lighters hasn't given anything away since the Civil War.
1ncn1 ill far frorn won 1n t1c n1Lc ac, ..
The professions of Glass and Byrd to d isinterestedness
for j t ofl en 11c·<•1n Io lo~c ground faster than they ~10 Jt, .
• • I . y of a thinner con where the vulgarisms oE politics ,vere concerned slipped from
In no 111"tc in I Ii<· U ti ion ,s c cmoc, :ic , essrnco them like a pair oE unbelted pants when President Roosevelt,
11i11tt.'ncy
. v· . .. " . er- l of the. states
than Jn ,rg1n1a. ,7( v tt • I
Congr
vcrnmenL
• 1• I I' f in popu ar go at th_estart of the 1939 session of Congress, sent the Senate
<1p<'nly b<>a•t ,,I 1lic·1r < 111 JC ,c . f rhc power• ~o~nation of Floyd II. Roberts, a distinguished Virginia
'f W t'. drum <ha1rman o .
f(.r.J>rC~!-r1tat1vr (., ' tc,n o, . '1 ll<·• rc•Jicfappropria· ~T1St,for a Federal District Judgeship. Roberts admittedly
' · wl ,rh ,anc • · d
f11l 1-f<,1141' 411hr.,,rnrr,111,·c i • I 1'11bills, has st.ate ad every qualification for the job except the endorsement
k ' f tli<" P,c,t<c-n . to
, ,
' (,Tl'I ,.r,<I ,1,n,t;,rrtly "' "'
' J •t H g,,r1c
,·r,,,
1 ti ' "' on criu,onle
0 ~FClass and Byrd. Taking advantage of the thing miscalled
, th,. flr,<-,r fh;,t fie ,r,nr.1f ,-rll, ,•111•t· whc.·rt tile peoP Senatorial courte~y, " Lhc Virginians opposed Roberts' con-
(,, • ,n ,,,,nrr1
k111t,lf Ji<1r,11liirl1-r,111 1,stH,TI ,.8',·
 233
1NtANS .
TUl:: l'REssuu., JtE v11tG ense. I-le is
,
""' """· Boys T t overnru ent ex p Arneri -
firntation OJl the ground th h \'ork City a g t {or tl1es e l.tn · d
" at t e app • r-Je'" d but no so-calle
,t l ly obHo ,i ous" to tht 'tn Th ct· . o1ntt11e11tw:is .. ,sent-dnY. u11dersta .11 • . Most of these
I , • , · ey tdn t bot! !lers0
t \t 1not1ons of findino• tl11)' t·e • r ter to "'O tli n. ofpre- te rehef, .
dequ11 dollar l
·elief bills.
b" outs1
' de agitators.
h (' ' a~on or their o ro11gh
t e t'eal one-that thev ,,·ere the r . opposition bey for~ ernl-billion·
)e, l are stuu
.a. stirred up .' .
Sm1th is a
good Demo-
a11d "'ouldn't stand for any appo~notiucal bosses of their
Th R b . ment tltey didi.
s~:td e
t.111,
libef31p .
rop0sa s
some o
f theill are.
an Ile votes co
nsistently
e o erts t101u1nation " ras rejected b 1 t dictate. plainforeigner~;has been a party m . he is a better Demo-
The clay feet under the togas of th y ~le S~n~te 72 to 9. crnt,toO-A},va)1 but that is because
have be li ti
en a t e more noticeabl
e t,,o ' '•rgtn·
ti tans nia> • RoOsevet, ty ..
• . e to 1e cit' against der of his par · . . local pol1t1CS,
Old Donu111on since that incident Th izens of the than the 1ea d roeddl1ng in
. .
conspicuous 1£ tile story of Frank B
· ey ,vould b
e even more
crat the President starte th rn states whom to vote
an able v· · • \Vhen 1 f the Sou e of
,v h o used to be ex.ecutive directo ane,
r O
f th
e
. irg1n1an,
Social secunt•y ~g
- to tell tile peop e o
Smith felt compelled
to clamp down on one
. was proprietor
Board, ,vere generally kno,vn Ban . forUl 193 , 8 . d Smith, the cousin, . .
1 . . . e incurred Glass's dis- bis cousins. Richar . lib al weekly published in
p easure by refusmg to set up a reo-ional soci·a1 . - Courter , a er Wash -
· L o security office of the Arlington dria but closer to
in ynchburg,. tile Senator's home to,vn , and by d ec~ng1· . close to Alexan • k
to appoint an 0!6-ce seeker recommended by tile ' ' irginia ArlingtonCounty, Yankee government wor ers.
inaton and the home of many . to purge Howard
Senator-she obvious~y ~acked tile qualifications for the job ~owing that the President ,vas trying_ , . Dick
she ,vanted. In retal1at1on, Glass used his po,ver as chair- . . . h the Presidents views,
Smith and sympath1nng wit William
man of the Appropriations
$500 a year.
Committee to cut Bane's salary

This is peanut politics and tile Virginians play at it. But

Smithbroke the faroily bonds and supported young
E. Dodd, Jr., a brash young roan who dared to oppase
Glass-ByrdCongressman. Whereupon Howard called a $5
a:
th

Glass and Byrd go on spouting high-minded arguments for
economy, against relief and, of course, against the unspeak-
able projects of that rabble-coddler in the White House.
Congressman Smith is everything a Southern gentle-
man and member of Congress from tile great state of Virginia
ought to be. He is a quiet, simple man whose face droops
lik.e a St. Bernard's, but into a wing collar, giving him th_e
appearance of respectable, overworked s1ncenty. • ·
dent of a bank and a pillar of his church.
. .
H uman1tar1an though he confesses he 1s, ID
how to be firm. He can say "no" when rehe• f appr opriation
. S itll knoWS
bills are up. Generations of Virginia Smiths to come,fhe
always says, must not be saddled with debt to keep e
•
loan to Dick's paper. Later some of the merchants bo~cotted
the Courier's advertising columns and forced the editor to
sell out.
His campaign workers, without Congressman Smi':11's
knowledge,of course, circulated campaign literature shoWlllg
' that Dodd had once spoken in a kindly way of an organiza-
tion that advocated doing something for Soutllern Negroes.
H e is pres!· I New residents of Alexandria, who were suspected of favor-
·l· ing Dodd, sometimes found it difficult to vote-poll tax com-
plications. Dodd was soundly beaten and the Eighth District
of Virginia was saved from Communism by a three-to-one
th loa ers
( margin of safety. The better people were all for Mr. Smith.
So were tile sweatshop proprietors, who were grateful to
I
~
1
 1 Ni A r,i s rnissio11, ~ -
v11tG Corn the
,:Hf. . power al to use
him for voting against the Vidou, w I
west Virginta tv{etallurgic a fter the
made them raise wages to ' 4t1 t oo age-1our bi)[, IVh· b.., the f r E,lectio· 1 nt. In J 9_33,d Electro·
, .., · a lveek. Arn •ch le , as o . g p a IIUtte he
gressman s most ardent supporters were th.e eong the Co,1. bliCsa 1an w nerat1n . . on per drop t
pt1 b the p £ the ge cc;illltI'llss1h and thus
Drun the construction conttacting fit.,.,... f g ~tlelllcn "iho output o leted, the
i11011g J(anaw a
fi enn1s. fr om l1eadquarters at Charlotte = - 0 v· RmehQ t and
t 11e, C 1 was coxnPur chase New
entire . 1 certificate,
• 111a
S rm truly had reason to admire andsv1 irginia· 1'his
to ~lie senri~e. . ued tl1e orig ke regt1latory
t11011~1urgical
.h rust ongress .. lllan
hm1t and to resent the interfei'ence in Vir . . Metafuge of pu 111uuss1Qfl issh eatened to ta 1 k this en-
t ose lunatic. New Dealers. Congr~ssman Smith · pohttcs
g1n1a h of subter state co . sion t r . To b oc n
man
to who
meet undentand, the problem,
a payroll. ·r·
of the fellow e SOrt Of
IS t •ho'• pow«
••" :1;: Com';;J
Rive< proiec:~, rnight
theFe.de.n over the N thority and w Dennis
haveb::d
was .P .
l·urisdictio f Federal au R' ehart and 11the hill in
Smith's co-operation with Rineha}t and Dennis well illus. h
croacm
ent o s
nsequence ' . the tunne
in I throug to the JO . b.
trates the weakness of a system of remote representation in unpleasantc~ for punching tters were up . ported
which a Congressman's constituents are not alert to \vhat he . p11ce . 11 go-ge first 1m
aprerruu~he Charlottesv1 e things. They 1 tes of tl1e
is doing and are content to accept his own estimate of his a hurry. do these from the sta l
record. Being a free agent because of the efficiencyof the '!l>eykne> ho:,:. mostly Negroes, frame ,hacks near t ;,'.
machine that elects him year after year, Smith could do a hundredsof wo h ew up io by 12 r, Negroes 1n ca
service for Rin ehart and Dennis that would have defeateda Southeast.They t r ble to house up to i ,, ty-f1vc to fifty
Congressman fro1n a more alert district, where a Repre• tunnelsite and were a . d as little as twen . cd checks,
Th men ,vere pa1 they rcce1v f
sentative's acts are subject to scrutiny and challenge. of Lhcse. e I ncl of each day tore and or
h r At t 1e c ompany s
centsan ou · d only at the c seventy-five
whichcould be ca~hc ( Lhcsc checks were tak;n .howecl 11p,
a IO•pCr•C<: lll fee. Out O l 0 ctOl'S who n1re y R r t•lt•C
rent~~ ,vce
k for ron1pany '
It liaJ)pens lhat in 1930 ihe up an cl con1ing /inn I 7~ u1ile~
of Rin<' · . . l nriy cents (pt ,l . flt'tNon) f 0111lla1k
twcnty-liv<•C'<'lll~ for ro,1' I 1 ·trkM 11fty c<•11111o1 I
hart ;111d J) c1111111 • secure, 1 •,1 (<JI
• urac1
' • • • 8· 'l'llt·
tc, t11111J1' " joli lricity if tht•y livc·rl 111· l'uht<'<
i,, rHI, 1 ,,111cha111·tl
' •
Jll t I I(• 11n1 I
tlnouo)1 ;i hill near (~;11,lc•yJ11idgr, W<'sl V1r1-1111(1.a.111n11y. II l
111
,y
1e•n1111111high t> '" ru1 · •111 ()()( cl ,11111111~ l 11 \Y'l!,\1'1
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wa110"' l,c dou,• for tl1c N1·w l\.:111,1w.,, . 1,, J'owt•1 ,or ' C:0111
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pany Rtr111•, Wh;11 •ti tl I• 1h1• llll'II
1
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w:i~ '" 1,,. IIH<'iI rodlv, •11 ivar,·, 1 111 1111
111y ' l 'l1t· 11111111·/ (' ,,,l,·y f111ir 11)\I~ 11~1111\lyw ,·111 lo Jt "Hh11k1tl1llll
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,l\ ..( h,,('\-1th.:11 lh . . I\0\'11 . 11 he c joh, .
~iIi \ <' \ tad11ct \\ ou lrl i ~a\cs1 11 I
,1 ' . ·gets ou t 1 . . I I Virgi111,1
· ca r 11allg-<'ittcl\t~ , . g·o thro,tt>h . ,irato \l the 111g . 1p;1l l
J_£ d
o t · ~<'re n1adc t r, a 11d1 1
i1 3 ies I-] fot ;i , ·lottcsv1
11e, d c}eare
u ol I he tunnel to the Fl o tra11spo1t ,vh• Veinof i,11l Lhcl11as [roJ11 Gh,U d time an
inerC'ial use. Engineers an~ cctro:l\,fctallurgicaJ pla~: Wasdug riceof 1t\c111en . .ob in recor t 2 ooo 1ne11,
p the get their J 1 ycd aboll , l
concerned \vith the . . officials o( the vario, Corco111
. .so.L, deaned.u~ 'fheY had ernP _o drilli11 g a tunn e
worked in the tunn rlOJect Well kne,v that evelS Con1panics p11u1~
~\lest"!rg1~1a-thepublic serv1ckbce
o~ders . .According to
d' e would be sub' ry lllan WI I
outo d white, in b. de sto o S nty -
isease known as silico . ~cct to the fatal . . d 10
1,1ackan f Union Car i I-I Res. 449, eveJ
silica dust-unless
.
th sis-a stoppage of the lungs i~dnustrial
e necessary p . uced b rorthebenefito forth in hearings on ;. d
it i 500 cases of
this end, the New K h . recauuons were tak Y thetestimony set the cornpanY left b_e inb 936 .According
. . anaw a Power Com . . en. To th Congress, • had died Y 1
· ·
with Rinehart and Dennis prescrib d pany m its contract four . 66 of ,vhose victuns ,, s were buried in
and dust control. Wet dr"lli e adequate ventilation 4
silicosis, 6 of these wor..._er ,.
. saroedocument, I 9 . . . A local underta..._er
dry drilling but less cond~ci::• toa pdrocessmuc~ slower than iothis . 1 West Vrrgirua. d
usty operation , · . Id at Suromervil e, . . th mass grave-pro uc-
cat e d . For the most part Rin h ' ,vasindi- a 6e ·u . v1curos at e
. . e art and Dennis ign d h" (X)ntractedto bury s1 costs Ji ld has since been planted to
provwon of the contract. The drillin ore t is
rare · g was dry except on the tionpriceof $50 a body. The 1e T nnel workers once re-
occasions when state inspectors visited the tunnel 0 Tb shacks ,vhere Gau ey u
such ,_,..~~; ~ • n <X>m . e d d A few of the survivors were
drillin ~ons, roremen ,vere ,varned to shift over to wet sidedhave been burne own ,
. g temporarily. At these times, too, gasoline engines, routedout before the torch was applied.
which generated carbon monoxide of such density that
u,urkers occasionally were ovei come, were temporarily l\ith- 3
dnwn fium the tunnel.
.\frer d)oamite blasts had so filled the nmnel with silica Gauley Bridge became silicosis conscious some time be-
dust that ~lnlity was practically zero, foremen herded the fmethe tunnel ~,as completed, thanks to ~its. Charley Jones.
.-.:n½er< back u, their jobs. Those who held back .. ere fired. Shedecided that this nmnPlitis was something worse than
Those who proosrd •at somerimcs lhteal:ffled with ax a badcold in 1932, when one of her sons died of iL Later
nio other sons and her brother died of the same disease.
hzuwrs ui the han.::s of mebossr:s.
The :'acrs z!x:mt sr'"licrJsi..•oc rnefnlly hidden floo t1x Herhn<bmd. l)eaam" Cbarlf'.S Jones, likewise contracted
;he di
1n1 iW: z,! i:=10.i.CG ht-eas ~ G.:nlrf Rr:id_.:;eTbose ~ but be li,td on, unable to '\\-ark. ,\1hen l\frs..
]aiits~seaai5e.e
~ i::l a:e::e rnrl--4
i::is.., 5<I , k' of_ dr
;;ec: 1 1u; S~
~ o:.c , ADV O • u" s that t:be-f:had....
.. «x asite c?Ily •o:::r :iZ?Sh:o pr.o-
b::t ~~ li=.rCc! ;,:?St ;"r:l 21.zihhk ~
uu
Ind
:e:~=~.1
. foandom. 501Jlething about si,icosis, she aroused the
to the n-a]izujnn that they could file damage
Ri;.,.-..~ Int' (IA,,, ..,I). Some 400 suits were filed agaiuu
- ACt -nirl D • ""·-
,~est_' -ttginia law 6::tllb sent nn1nc1s
uap:.::z.Z c:t:&,ICi '!.% drz::-:'t'2:s;; ~s-..,,,tr. as :er~ ~--1101'5-
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ins1 Ill $1,000 11 tc
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~• . ~.,, tunnel job ,\',\S tltlllt,
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h, f I ' · tc ,.,c hcrn dn,'t'n .m,,isisw.1s nut ,vlltptn$,l e. , . ,o to the st.,tt.· ttn,1
c ,nc ron, t tc r ·ourtht111se t'<'gul.n·ly h)' Rin<'h,H·t and l), • b, its n,cu, tht.•c,-01np-'ny
t•1t-1l l"'1d $98.ot I . l .
Clll[)lO)' '\. J . I Ill\\)
cc~. , t~t')' tat1tpt·r111g \\•as openly <'h,\~"t'd. In the St'<' I • l • ., ,, . \\'l\O \\'C\'C Hitt l)
$9~111ioof it
1
l"''d b,,c"- tu ,~01 {'..C~
\\\IS
onrl rase the Jury again disagi •c·cd, this ti1nc "'ith 11 jni'()1,s lallin"1-oc\..s<'''otbe,· :,ccidcnts. . . 1
.,~reed on an :t\\'ard of $115.000 :ind one juror holding out. " ·i· · · t 111,, 1nch111
l 'hc u~hot of it ttll ,1,:isth.it tll,\I\) ' s1 t<'OSlSvie s •
Finally. one of the cases ,,•ent to the ,vest \'irg-inia Supreme i11gnil the drifters '"ho lcfl \V est
,. • • Ct
11-g1n1a a e
r ,,·orkllH"
~
on
Court, ,,·hich ruled that the claim had been outl.nl'cd. 1'hc the tunnel job - got nothing. Othe1-s ' got pay1nc1,ts ?f $~0
,vorker involved had not found out he h::id silicosis until it on 11pto $1 .ooo ont of tlle "rack.ct." The Jones f.1n1ily dirl
,-.'as too late, un der the la,v, to file suit-according to the well.lt collected $800 {or each of its dead. About $l,7oo of
ruling of the court. La\vyers representing the plaintiffs th:n r this\\'llsput in to a tour-acre funn and a flimsy fran1e house.
agreed to settle all claims for $i30,ooo. Later it "ras dis· Therest ,,,as used to pay off debts, buy son1e CO\\!S and start
covered that two of the at to rneys iI1volved had received, be- a new life. In 1936, the 011ly regular means of support for
sides their $30,000 share of the retainer, lvhich ,vas deducted I the Jones family, '"hich numbe1·cd eight including the off-
from the settlement money, a fee of $20,000. The Janryc~ spring of the dead sons, ,vas $2.00 a ,veek from the v\1PA,
turned over to Rinehart and Dennis a t e
evidence on \vhich the case of the sil1cos1s v1cum
• 11 h documents an
. . . . . s was base .
· el eases to ge
d
t
I the agency ,vhiclt bas been thro,ving the taxpayers' money
around needlessly. ~frs. Jones hitchhiked eighteen miles
once a ,veek to the relief station to get her $2.00 check.
The complainants, of course, had to sign r
their share of the sett1ement money. f I west 1 One of the daughters-in-la,v took in an occasional washing
. d h 1 w firm o t ie or did janitor '-"Ork.
Rinehart and Dennis retaine t e a . before the In 1936 a radical Ne,v Yorker, Repres entative Vito l\{ar-
Virginia Democratic chairman to plead its case

r
[
 v11tGINtANS
'fl-lE . fact nothing strang e
ca · •
TRE PRESSURE
BOYS j .
e resolution-
There \.,as, in '
able Congressroan
fr Ill the
o .
nton10, u1Lroduced
De a resolution [f,l(Fedtbd ¢d snuth, the b of the Rules ColllIDlt-
. partment to investi te empo,verin"' ·t po, . . a roeIIl er h
in general and the G~ thBe_ravages of indu:t ~e labor ab011ti •. ,..;niapistrict, is tive Democrats w o
butVita~ p of conserva 1
hearin ey ndge aff · • nal dise fjg is one of the ~ou II1bling block for liber a
. gs on t he 1-farcantonio r . air in particuJ ii.le e Jie
Bridge ,vas told by witn esolution, the story f ar. At le . de that com m1ttee a stu f th Roosevelt Adnun1stra . . ·
d th esses ,vho k . o GauJ I ba1•e 1JJ3 • the start o e · 11
an e Joneses testified. But th . n~w it. La,vyers, d ey . lationever since . h held up the wage-hour b1
farther than th . e1r tesumony did , octors 1egis th IDJlllttee t at . h
. n '[bis is e co ffi . 1 of Rinehart and Dennis as
D
.
•
e committee transcri t
find it very interesting
enrus screamed murder from
R
· epresentati
n t get much
p . The ne,vspapers d"dn
1 't
f ves_ of Rineha rt and
I
I
uo-
forallJJOSttwo yea .
rs Ano c1a
freely about the way
the Marcantonio
.
resolution
h h
I talke d very did not actually retain Smitl1, e as
th e s1·Ii cos1s
· racket was b . a. sa e dist ance. They sa·d1 wasshelved.The firtnl .th h. ro during the course of the
. . .
1nv1tauon to appear before th
eing revived B
. . ut they refused an I "d but it did consu t w1 I •
sat ' C _....,;ttee hearings. West Vi rginia officials un e1-
• d .

l
. e committee A d h
bl e d in their boots lest the M : n t ey trem. Labor Ouu= el alf f Ri hart
passed, forcing them to an arcanton10 resolution be stood,moreover, that Smith consulted on b l o ne
andDenniswith the West Virginia lawyers who represented
at Gauley Bridge. swer questions about their record I
I thecompanyin the damage cases . When the measure got to
Con~erning the protestations of the contracting fi M the Rules Com!Ilittee it was among Smith's friends. There
canton1 ·d "A rm, ar-
. o sa1 : great deal has been said in the press b its throat ,vas neatly and painlessly cut . No one was hurt
an . of Rio e h art an d D enn1s,
or 1n behalf . the tunnel contractors,
Y l exceptthe poor whites and Negroes who have or hereafter
d parucularly by Mr . Faulconer, president of Rinehart maycontract silicosis. T hey aren' t worth $2.50 a drove to
and D ennis Company, to the effect that these victims were a Rinehart and Dennis foreman.
practicing a racket . . .. I agree with them that a racket has
been practiced, but the most damnable racketeering I have
1 Mr. Smith is a well-meaning man. I n a ,vay he is a typical
Congressman,no better and perhaps no w orse than the
ever kno,\111 is the paying of a fee to the very attorneys who I rank and file of his colleagues. He looks out for the interests
represented these victims . ... Not only Al Capone should of the substantial citizens in his district, citizens like the men
be in Alcatraz but these representatives of the Rinehart whorun Rinehart and D ennis . T hey had a mighty bard time
and Dennis Company, tunnel contractors, should be there ~ver ~t silicosis foolishness. When they needed help in
,vith him. Moreover ... I am going to waive all ilillilunit)' ~ashington they didn't have to turn to lobbying lawyers
and make that statement." He has never been sued, but ' 1: th political influence, as they did ,vhen they were dealing

bis resolution never got any farther than the House R~es
Committee, to \\•hicb it ,vas referred after it bad received
unanimous approval from the Labor Committee , ,vbicb con·
ducted the hearings ",ith volunteer ,vimesses- • SI"de-
lt seemed strange to some that the Rules CoJl)Jlllrtee
: th the legislature and courts of West Virginia, which,
ther all, is not as old and civilized as Virginia itself. All
! ey ~eeded to do was consult with their Congressman.
This ,vas the property lobby operating in its simplest,

l
 Railroads unregenerate
been harder hit by the depression-
. Li,\JLito..\IlS ba ,·e
_\1'Wc..\.."' .
th r indUStrY· Everything '"as
~·on decadefr thantheanymomento e the Ne,\.' Era caroe a
~~ thetD - They had huge debts and consequen t1.Y
oro
crop"pc!
ht.ii 929•
1ll lcharges;
fixed competing [onns of rranspartat1~n. ale
uuotheir traffic, particularly busses, pipe }ines and inland
nterways; labor costs and ta.Xes increased. As a result of
their besetting croubles, roads ovming one-third of the na-
tion·strack. mileage v,ere in receivership by 1937. Various
palliativeswere proposed and some of them tried, including
largegovernment loans. But the railroads remained in a bad
way,and no informed expert held out much hope Eor their
financialsalvation.
Railroadmanagement, now under the thumb of the bank-
ers,did several things to save the bacon which it and its in-
ve5lorshad been happily feeding on from the time of the
~a~d.grants to the great depression, under a policy whicl1
VilhamI-I. Vanderbilt had correctly defined in 1882 as "the
public be damned." First, it besieged the Interstate Com-
I d
merce Comm1ss1on
• . Eor rate increases.
• Second, 1t• tried
• to beat
own labor's shate of the take. And third, it solicited govern·
dis assistance. Wh at 1t
ment . generally neglected to do '"as
play the ingenuity and enterprise with '"J1ich private
I ownership is supposed to endow all American busines.5-In a
tatliospeech delivered April 13, 1939, Commissioner Joseph B.
Eastmanof the ICC advised that the railroad managers apply
•4.S

l
 • 'I JI
1•c·• 11
1 N JI,It " '
, lloi\ 09 uN~ ' ·
.. · 11o·Ldll ag.1J1t\L
1?44 1·111,: l'R' .,'Ssu ,ti\ I ., . ( tile I al '

I
, , ll!J: II
l ·• nL1·corn1nuni11L"ra111
•v111L1obi>Y1ngo
son1c of thci·r Ct\ c111y.
to .... • ovs t • coug' 11·tcra a · f II
.t o g 1v1ng ll , t,1 ,989•tic_ and the co a • c lJcaring their 11
l ,vants at 1:>rices ,vhich it is ,c puLlic the k.i11t1 c1sl11P • renll Y wcr · er v-
It apparently never occ able and ,villing to o[ Sctvit•~
111
1icow11 fronts appa l1 ey were getting oo
during the period o( trav u~;cd to ,uost raill'oactp:1y."
ptl\)
r'
u1cr
,nigttson o ·ng all Lhe per10
F r durl .
• d thaL l
h
d anot er- v~
l'"""nsfrorn the Jll '
b
'G
Even after it had b ai that this might b _cxcculives rruit. o , I o( one 1t111dan d" vast sums on lob Y·
. een demonstrat d b c tn1por
in passenger rates that th . e y enforced r d ~nt. er111uet1Lbe pl railroads were spcn ing_ the lobbvin g busi-
l e increased . ffi c UCL1on pWA-t,c had been in '
o,ver charges produced substant" ll t1a lC resulting fros ~nd d propaganda. As they b ·tt the railroads knew the
in the iaEaY larger net opcratin m
revenues
. , th e o ld -timers
. uiga~ the first railroad was u1 , not so crude as tl1e
against this method of b . . st resolutely held g \ ness since
.,.Jllebetter than the u
tilities. They were
1 er were so sensationally
.
ex-
usiness improve out
manded legislation to increase th diffi me~t. They still de-
I b-Hopsonsand consequent y nev ds f the Senate Interstate C oOl-
eu· t · e culues of th · j sed.Nevertheless, t~e rehcorb o i·nvestio-ating the railroads
p ors, and improved methods of . . e1r com.
ruptcy. receivership and bank. Po . which as een t:> l
merceCommittee, e able uidance of Max Lowentl1a '
And thr~ugh it all the specter of government o"•nershi 1 forseveral:ears under ~ . th ~hose of the electric utilities.
and operauon haunted their waking as well as their sleepin: I show pracuces compara e w1
This investigation was inspired by Charles A. ear ,
B d the
f
hours . Government operation had been tried ,vith remark- historian,who o,vned a Missouri Pacific bond and got ~o
able success, considering the circumstances, for more than wondering,vhy it had defaulted. After a study of the rail-
two years during the war and jmmediate postw·ar period. road situation ' he interested Senator Wheeler, who con- .
The United States and Great Britain are no,v the only cwo sentedto take on the responsibility of an exhaustive inqtU~Y-
important nations in the world which do not own their rail· His committee since has filled a good-sized library with
road systems. After an exhaustive study of the entire railroad
problem, Commissioner Eastman reported in 1934 that "the•
l testimony.It bas never attracted very much newspaper atten-
tion, chiefly because the problem is so complex. Among its
oretically and logically government ownership and operation I
disclosuresis the fact that the railroad lobby still is the
meets the known ills of the present situation better thannd any largestoperating in Washington and state capitals.
other remedy." At that time he submitted a plan u er To support their various associations, the railroads now
'th £ · ess to all
which the railroads could be taken over wi ent aJrnsecur1ues,
.. s~nd about $8,ooo,ooo a year. Much of this sum represents

P
arties concerned by an exchange o f governm . . h ·r rospec· ldirect lobbying and propaganda cost. Between 1920 and
l,ased on the value of railroad properties aotl t ei dph nd&. 1086, Senate Committee estimates show, the total bill for
tive earnings, for out.,tanding railroad stocks;" t ~un· l '.ailroad a&sociations came to about $i85,ooo,ooo. The organ·
Sc•nat.or J~urt<m K.. Wheeler and later Scna~or •hrn~eveoLY' I nation rcachc~ into every city big enough to be a flag stop
•I · n t by the t11r1ct e f and docs public 1clations ,vork not only for the railroads but
itttr,J<l1lf'.c·d 1ucb leg•• atiort, ,,u
<11•c•n I' . rovedo
f1ftf1 ,~_,ngrrs• ,net, Pr('~iclc•11tJton ~vclt ha~ c JS,~~!;1<"d Jcnd ' rc,raon1cor their p;ood c11~1on1cr11 also.
At the rnc\ ol , 031, th e Aa1101.:itllion
puhfit , llWll''t#hip of tililroa<l11 :111d.the proJCCL~
of llail way Executives
\
lit la ffJ:ff~i'JCJ, (

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• l'\\' II H\1•11R:lta,tf I , s c·1rt•l111 to • ' l
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t l It' ,t ,ttt·s ul l\l ,1111t-,\ 'c r111nut N . 11· ' . o,~ Wt'rr f(t' l•leu·
.111cl tt''."''· • . •
)bb ,in, , ,tctiv 1tit•s. I It• 1)rt'le11t'<
, • t:\\' ,1111psh1r
v ~las,~ud ol his inunetl1ate staff "' lt ') bgf . , con1111ittces of Con
s<·1t11 , ( ,011ut·1 litut and l~ho<lt•lsla11d; to the Ne,,; )'01,'k Ct::: ,o use his stnITfor nppt•n1auces c o1t H A Sca11clrctt,
lt ,tl, Nc,v \ '0 1k ,ind ~1ichi g,111; to th e ( :entral Railr oud ol . l1enr1ngs.
gress at pub 11c · 111 a• l etl er to • · •
Nc,v .Jcisc•y, Nc,v Jersey ; to Ihe Pe11nsylvnnia R.ailroad, pre~idcnt of the l\1il,vaukcc, Judge Flclcl1er '"ar11ccl tl1~t
1,enn sylva111a, D e la\vare and Incli nna; and so on. State rail• "expensesof lobbying. ,vork s11ot1ld no t b e paid through . . l11s
roac1 associat ions ivcrc pla ced under the direction of the office,"and that such ,vork, althougl1 done u11der lu s direc -
Association of Railway Executives in Washington. tion,should be assigned to a "number of railroad men ,vh~
Natiortal legislative matters in a state were handled, first, haveextensive personal acquaintance with members of tl 11s
throu gl1 an executive committee charged ,vith the super· l Congress."Fletcher 's position was that "l1earings before the
vision of the work; second, through a chairman for each
Congressional district. At the disposal of the district chair·
! committees are largely matters of scenery to satisfy the
P~blic." In his judgment, effective work in support of
man were placed railroad officials, attorneys and surgeons. ~ills helpful to railroads could only be done in personal
The district chairman had authority to call upon such o_ffi· intervie,11s
,vith Congressmen by personal acquaintances.
. d .th t the necessity On May 15, 1934, Fletcher ,vrote 0. W. Dynes, general
cials for any assistance he might nee , ,v1 ou
of goino-o to the individual railroads. b of cotinselof the Milwaukee, regarding plans to defeat the six-
. ular mem ers hour-daybill. Fletcl1er informed Dynes that he had an active
State Senators ,vere assigned to part.IC ,, tacti.Jlg
this lobbving machine, who ,vere responsible for c~n" The cotnmittee working in Washington and that he had "pulled
,- .
them from time to uroe, as the emerge .
ncy may arise.
organiza·
I everystring which is accessible" to defeat tl1e bill, and had
d "bu1ld up an some hope that it ,vould be allowed to remain in the Rules
district chairmen ,vere expecte to
· ·
tion in their respective districts, c
. .
ons1sttno- 0
o
£ outstanding
etc. upon I 0
~ tnmittee ,vithout being brought "before the Holtse of
epresentatives for a vote." However, since he did not ,vant
. . ountry ne,vspapers, ,
businessmen and ouzens, c
r
 249
' E G £ 'NER ATE
J)S \J NR f
, . ,
l'.t-tb':
"' \-1'-~~ss
l. •~E
ti\11.i:.Or\ • tly t11e entire body o
t\ ,..t,.;" ..t11, rh..l• tt'-)\s , to contact d1rthee_k for us to establish
' ~ t.."t"" l-'te-t·h tr )
· b to "bl I 1n , f
'- -.1. l.'t..\ ~ll.~~?I~ " . • ~ -'l" ..l.~~i_ l) ifodo\ts Jo. is not ii:npOSSl e , h are real roolders o
,'-, '•,,;,
'-~ "':ten 1...,
1....
'
··~ ..., .....
-:-•,, ~• t<.,,
'
•
•
,,·1 l
•
" (>I··
r-t1 tt..:11L\ll,
'
J..
f let h
,,
,-.e-l?•t\·lth '"
membe "'
•l .. al'"'
•u• ,,ntt""l , .
"01.(,1. "'
•
't les ,
<O.t it ~ -
' ,ii_

l10
' b\ \ C it
1etu") .
~thl
•nfluenu
·a1 persons ,,, o
ch
~ " ,«.) ,,·el-e-,, ell a . c er suggested rs Oi i011tacc. . Jl ., • the assi Q'Il.Illent of ea
'- 01~~
r. i. •
..tn.d "•"·ru:. .
cqn:.u11tect , ,ith ·th"
) stista1n such .
thitt th
e me I,,. e,;
blicopifllO . far as to direct o .
• pU chef '"ent so . . dividual ,vhose duty it ,\'as
:la...\.e it ttnlik.el, th· relauons to th llluers of fJet arucular IIl .
. .\t n1embe • f em as \\·ou}d l11'
essinan to a p t of private ovroership.
th eir pl..lC'eS and d rs o Conlh"ess
~ eno1mce our £ri O
"·ould . cong pressure for suppor 1 t" n to Congress were
'\\?rote Fletcher: " In . ends as lobb ,ists .. nsein ID e);ert didates for e ec 10 • d
l'OO d a..'1Saciations .
efE,-
ect a ,1
SU~S tlna
m each state I had . . o
o
th
e
it m · d
=
OI"ganj,za .
.
non of ..... :1
• <U •
.
<\cbis request, can
cold that they ,vou
ld not recerve
. the support of the railroa
6ni 1 pledo-ed themselves to vor
fa
. p an 'lvhereby we ,,·ould be . nun pu tting into
inceiestsunless the~ de l~e- y In ; letter to Carl S. Hoff·
the inHuential men behind th advised as to ,vho ar _,1. d lecrislat1ve poM.ic1es. . Railroad Association , re·
furth e several ConITT"e e the,....,oa o·
er thought that ,ve miaht b o ssmen, and the ' chairman of the issoun
contact or by the careful d.is~bu ~ able ~ou gh personal ~ , lies of prospective members of Congress to ~
fexnngto rep · f th Missoun
ence in a perfectly proper ,.,,-ay ~on_ o! literature to influ- questionnairesent out under the spo~sorship_o. e Fletcher
upon ,vhom the several C e JU gment of the men • Railroad Employees and Taxpayers Assoc1auon,
advice. Indeed I h th ongressmen rely for support and said:"Some of them do no more than to give ~e stereo-
to et a mail·'
_nflg .
1
. ave . ought that we might go so far as
mg list which ,vould show the names of the
uential citi zens o f t h e U mted • States, meaning thereby
I typedresponse, ,vhich is that the matter will be. given con·
sideration.I think persons who make a reply of this character
shouldbe interviewed further, and that it should be made
those who are in.fluent1·al 1n · a political way, so that ,ve might
veryclear to them that ,ve are in earnest and that if they
contact th~se men through our attorneys, employees ~nd
representatives, and in order that we mio-ht provide them
1 expect support and assistance from us they will have to
I pledgethemselves in a more definite way."
with such informative publications as a:e issued by the
Judge Fletcher's organization also tried to influence a!'"
various railroad agencies and which discuss the railroad 10
• •
pointments to Congressional committe es handling bills
question m a careful and conservative manner. which the railroads were interested, particularly the Rivers
"I should be glad, therefore, if you could send me with and Harbors Committee of the House. Through the various
reference to each member of Congress and each Senator,
state legislative committees, he first determined the attitude
deaJing ,vith each separately for filing purposes, a statement of eligibles to,vard waterways. The A,ssoeiation then exerted
as to who he is, where he lives, ,vhat profession he follows, every effort to secure appointment of CongresslJleD ,vbo
what is his social and political background, and particularly Would serve the Association's interests in opPosing v.-aten'lllY
who are his friends, advisors and sponsors in each of tbe development .
counties in his conQTeSS'ional districL . . . I have long 1,een A. letter to Fletcher from an official of the Union Paofic
o fair frolll meJJlbefS -~-.-A "if he
convinced that we can secure treatment . a System stated that one Congresmlan had pro="
It LS
of Caugt~ only by :reaching the people at hoxne. ,
 .:-:s-SR-~TE
-~- £ G .,.
• i:. \ \l \1..t~\
o~ \ :s"'
- ~ard1 22. 192
s, f{ar
•-
\t"tter d:ited • • . rorn.ia
· "This
' ,, . . . ·· lo
·••tl tll \lll '-•
.l
Hir.ltll JohttSO .
n of C.a11 •
·ruesassociauon
•

,i,.l•'"··· • ,:1.,t--'r public un 1 . I

" ~
• " . ~,'¢ • r.1i\t\.~J or blic utiliues. ts
' ...' ~'i.l i.• tt..'lt :i r.lilro.'\ds or pu church
"' :l. -,~ -
,,,_, ••
'-"' u-.
-,i re~11t . . di -id11als. as v,ell as
- .l of 1t1 ' • com-
' - " ,1- , ·., .s.._-,."llltfl'-"l..-cu • _ ::inks, and insurance
... : .s., ~,~ · nS$t iund.'- S3'"1~ b::fid •~~ respansibilities to
- ~~ - ~ -I.~ •~ ,
si,:._, ·,.+.:ch ti<O''~.
of their uo.u :
alert to the urgent obliga-
.
•• ,1: .:-·nn:t :,-.- . of inJi,,duals are . to safe-
• 11¢t ~1ll$ • . be ca.\.en "·hen necessar'l
~: ,,-.n.-nucti,~
:icuon ..
o.'I!!
~.; t!lt ;a-unnes
• • th~
. o"-n. ' _,.,..;arion ,,-asthe pal·d
- :secunn Q-1\-neIS.~
· .\..~• the _ _:,....-.-.ds. Harrison admitted that
___, }obh'£15t of the r.u.&£,.... .
L.,e:it - - - ....,.t, • the name of the mvestors .
• .:,e:h his ,\s'sO(llllOD ,..,..,,.e
~ . • _ from the rail£0ad interests- The Asso-
Ul

is. wak~ 1 Jv
. _ . called T'ze Securit) Owner , "-as arge '
.
~ != ~ :-mOllS
.n:,;J!!~ ~-
ni}roads. which ,,ere charged
lilt Y cents
2w:r- 5:odho!dcrs .. e1c led to belieYe, ho"·ever. that the
;::2:.:1irrixprcsmled the vie.\-S of the investor• .
Onlmch 1g, 1~g. Harrison v.rote to O. P. Van Swerm·
~ i:m the magazine could conduct a "very . forceful. and ef.'
ftuneampaign for the railroads" by posing as an mvesto:5
a;m. Til.e lcncr said: ''This paper is being distributed tn
et"trypart of the United Stato, and we already have secured
the c.o-operation of a number of carriers in extending the
cirmtaii on through underwTiting trial subscriptions at fifty
etnts per name. The railroads are furnishing the lists of
Rlptrat'Cutives and key people along the lines. as well as
own~a of the securities of their particular roach. On the!
'ill•er hand, we ,vill r.hc:clc.carefully againit thc,c li1tt for
duplicatiQn. Copies sent ,,ut From t}1c·se lists arc not car -
I ,n~rktd a\ coming from any 11p1!cialr<>ad.''
<)n the same clay JJarriv,n w101c S. ·r. Blccl~oc, gen •
I <'Talcc111n~Iof the Atrhi110n, ' fop<:k:1 ReSant.'1 Fe R;1ilw:iy
 \
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1·1w~I'
· arth hit'" '"t 'lt" $1\tl'\\
l
0
•,t\) ha,<' I".'
\' andbt pnblt r ut1 •i1ttt·
· ~
h'"''''
f(l to \i\1ge- l\ l'\' ra1 I
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\t tht' tin,e-the local co-ope,·ating
;,'\a( ~ •
ro,u1ctls ,,e-,e bt'u\_,_o
• " , ...

' . . .. 500
ganiiedunder the spons.ot-ship of the Sec1~rit_,
dation, ,v.
R. Cole. president of the Louis, 1lle & Nash, ill~
·~o- o:,'ll
:~
, 1--larrison als_o s~read railroad p,·opaganrla through Yarious Railroad Compan), ,,'l'Ote Alfred P. Thom, gene.ral cou~
10 the i\ssociation of Rail,\'ay E.-xecuti\'es: " Mr. Harrison
l eseal'ch organ1zanons. So-called studies by the Security Own•
has evolveda plan for completely organizing e"er} Congres -
ers As socia tion on ain ,,ay transportation , public highwav
sionalDistrict in the United States ,vith a Yie"· of bringing
motor vehicle traffic and development of inland and inter•
proper inftuence to bear at home on Congressmen and
coastal systems of ,vatenva}'S ,vere issued under the name of
Senators,vith respect to legislation calculated to be hostile
Research Associates , Inc. Usin g his various associations£or
to the railroads. He seems to have met ,vith a large measure
propaganda dissemination, Harrison organized a lobbying j of success in bis efforts so far at organization. I exp~
machine for the railro ads and the utilities. the viC\vto him that there could not possibly be any conflict
In 1930 and 1931 local co-operating councils ~vereor·
ganized to bring political pressure on RepresentatJ~es ~n~
of interest between his Association and the Association of
0 Railway Executives, and that in my opinion the situation
Senators in their own districts and states to block legu_l~t'. demanded the closest sort of co-operation."
. d h blic uuht1e,.
considered hostile to the railroads an t e pu .b
1 ed The railroad. rewarded Harri son by contributing to hit
• ·1 as thus deSCT
A™>ciation,which thua derived (unda to pay his a:1lary, and
f 1·1.5 • wterest in
The function of the co-operating counci . the ra1 -1•
in Harrison's literature: "Becauae O th e Van Swrring,:na, who were particul:11 ly benefited, m.u:le
in 0 f JI induf-
ll,111hon a $r;o,oon loan and ouniglll giCr• of $11afi,O<IO.
. are •u
roada and publi c utilitie11 which arr the L,uJwark 1 a .,.,-c;iiea•
' ect w tie I')"
l>J I Duling thl' tlntl' wht-1\ I l,11ri11onw111 1rceivi11g 1lir11c1111111,
try and at the presrn t ume
• . aenring great uum I rs of ,m~I
,e
pr""ure, this a8'°CHltlon reprr ·
I
 1N\ll11'1 NI' 11A11t
I Ht, 1•111• 11AI1 1\pA \\li 1 . ,1ti11II ol
,. 1111 I III
,I l,111 -~~lltlt, I . I S1•11illt' Ill\ I. p
11•~1d,11i-l •
10 11(1\ h I rl'soh1tiPII u1 ' ' . \ 111h\01 k ii . I lt' ,vrt1l1'
" · Ull l,y ( ' <11l11,,1tt ltc,\1·
,011~icl11"11
up a ia·t' I oad e111 >.,011g 1e&s • l 'Iit· I \'a1t
lllij
io111p,,1111•
S . ~ 11',l\ i
I': 11res1
,,,11r11 •nn·d, I 1,11,i•nll 11A1t't i 11iun of ,\11u' 1ican
r n e anrl avoi I l We1 ing1:11s ii adsWf' I l of 1he ssut '
Con1me
ree Com . . l er co11I
IIHlei
, IVhn I . i,1 ro,I peUey,presh en ' ·I I' Scnil101 \,\lhrele1's pro
10I by 11_

iI
elev• rn 1s\1on th 11111t . ~Is:u'fhink I have. score '.t'~l. ad fiuances good eve
Jol'.111
ice, naturall b' rough the le ln1e1s1 •
Ila•roa . invesugale I a1 1 o, [
A5~ciation, pu:r:r1t:~Led to the hill. 'rlt~o!ding_ con1pa:; osedresoJuuon to f prevention is ,vorth a pound o
appear before the C g to represent the '. ccunty Owners P
k 'An ounce o p 11 ,vl10
ning'swor . . ' appeared to please e ey,
hold' ongress and investor I cure,"' f{arri~ons not~. d a splendid job, and hope the
ing company le . . object to en . s, could
work. ha . gtslat1on on the actment or th
voe w1.th millions of d ll ground that it e replied,"l t111nk .. you I
menu. o ars of th would
Res . e people's invest- 1 Senator stays
In ,933, put.Pennsylvania. R ailroad cont r ibute d 4t
t11e .,~o,.ooo
. ponding to the call of the V and in ,934 $25,000 to the Security owne r s -:'-ssoc1auon.
directed Fred N. Oliv an Sweringens, Harr· A, J. County, vice-president of the P ennsylvania, referred
Ov.-ners Associa . er, general counsel of th S ~n 1
F

1
.
.
ore1gn Commerce Com .
_egularion.
.
informed Harrison
uon, to appear befor
- m1ttee of th H
e the Interstate and
Oliver thought th bille o~e t~ oppose the
B . e mernonous and so
e ecunty
l in a memorandum to a $5,000 contribution made in 933•
whichwas recorded as payment for studies because the
Pennsylvania"felt that the railroad companies could n ot
• ut Harnso · · d contribute directly to the work of the Associatio n " or
plied. Ap.....,.rino- bee th n tnstste and Oliver com- "becomemembers because such action might tend to weaken
in th r-- -·o 1ore
. e House co mmittee . and speaking
the influence of the Association and its ability to act inde-
•",· e name. of rnl"·a,· ' secunty - O\\'Ilers, Oliver said:
. c ulquesuon th e e..xped.iencvof the measure and apprehend pendently."
As:in~ther reason for contributing to the Security Ow n ers
1, wo . . d ba,·e an 1DJUr1ous
· · · effect upon the \'alues of railwa,·
~1:~ generall,·. It "-ould restrict the number of people Association, \ Tice-President County cited H arrison's
.
fluence in N e,v En g1and through the Savings . B ank Assoc1a•
in-
.
10 posiuon to buv railroad securities.''
Thus the \'an S,,•eTingen brothers-through Harrison. f :on of 1iassachusetts. He said Harrison's group could be
elpful to the P ennsylvania in its effort to get conu·ol of the
their p.'lid senm1t-"·ere nble. bv re1uote contr0l, to use the
Ne,,, Ha,•en.
11nhapp, genenl row1sel of the Securit\' Owners •.\ssociation 1 O~nii.'\tions kno\\f\1 as Shippers' Advisory Boards, ,vhich
to ple;1.d their c-aseunder the prete,t th:lt the bill to res1rir
A. •1n• the name o f th<' shippers,
speak . also ,l'ere used by the
holclit~ ('('nlp.'lnies "-as in fart a restriction u))Oll 1hr lesi .
S$0Cin.tlon of ' \ mel"tcnn
• R n1-1,-onds to promot<" the railroads'
in, ('$tll\~ puhli, ·. \$ Se1':uor , \'het"ler poi111t<lout wht'll iht'
e, iden('(' of thk~ de-rtit "'US b'roll~ht • t>t-f<)l'C hi~ ')"f()n,niittt'(',
fl"\ (1\1"
1\;!~"·.e
, 1
1ot \~.. 1ct1on
PTOl:\'111"•
• of t"'" ,T
The- 1\dvi$OT)' BoaTds art" llndet' tht"
"~ ", .. -,e-1·v1le
" • u·1v1s1on
.. Q{ tht" .-\s.~icltil>n
this ,,~l,n1C\l't' th.1n n "c-:1st of 1n\ls,,'p1'fst"nt.1tn"
' \ "' ~ ,--'his-
0
,,•~$.;l D:'~enC'i\nRn\\f\~lls, ,\ lllsnlt·t '""11,ige,· vr tllt' ('.,\t' SeT, ie'<'
\l\e'l\\N'l'S
. tht Ct\\~'f:--~ . ,,f tht'l l lllh's 1,
l"•f :,it.lit'~ , .
' 'h1"\ ~l't" St'flllll' • I\ 1~\~\
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 GENERATE
l"l-l.E p
s uNRE l
1tA1LttoAP ny for ex.arop e,
~ ·
_xpen_ses are paid b
,, ere initial!
y orgaruz d
transp ortat ion re
REssuR

y the Car Ser .

. e to work out
E Boys

vice Div• .
ts1on. the B
I (ioO•
-rbe colga
te-PalrnoJive-Pee_
the assistance o
t Campa
f the Chicago, .
'
Milwaukee, St. Pau
ed legislation in
. M·nnesota
1 •
l

Started
0
qu1rements b
to use them as lobb : ut tn 1935 th
. problems . oards
involving
1
•
oblllined
30d pac!fic
defeat propos
~: use of coupons redeern:ote
ble in merchandise.
President Scan·
n January 29 I y1ng agencies
B_oard passed a n~mt35, the North,vest. Ship
gill bill to modi£ ~r of resolutions favori~ers Advisory
e Association
• i prohibiUO~e-Pa!Jnolive ·Peet Coxnpan:ffect its business. Scan ·
'fbecolga b"H would adversely
t tbat the I his representative
. ·n Minne -
1
Int erstate Comm y
hi
e long-and-short-haul
erce Act and o .
1 the Petten.
c ause of th
dret
drettrefe1re
. d the matter to .
db ck that after seeing one o
f the authors

bill
s P and various labor
t
ppos1ng government ow e
warded to all Senators and Cs. These resolutions were nfer-
ongressm ·
s ates . The secretary of the C S . en in the northwestern
or-
l apalis,whoreporte . a

The best Fletcher coul say

le .slatio n in his pocket.
of the bill, be left with tbde gi bout this whole transaction
dina of the ex pensiv· e ra1· 1roa d
· ar erv1ce I)· · · as that be thought the len g . b ble " "I do
copies of the resolution top 'd _1v1s1on transmitted w . hi ers was "not impro a .
0 res1 ent Harr1so f th lobbyingmachine to s PP " he told Senator Wheeler,
°
•
wners Association He was al
of Congress to who~ the
inform ed that ...
.k h'
. n e Security
lso _given a list of the members
reso uuons were sent A d h
I~ occurred to us that you needed something
· n e was
l not think hardly a day passes,
"thatwe do not get some kind of letter [rom _someb_ody"': 10
wantssome help on legislativ e matters of various kinds.
I

In 1932a bill for the regulation of busses and truc~s ~as

l 1 e t is• ' as coIIlillg
• dire ~ ti Y £rom t h e north,vestern public,
draftedby the Motor Vehicle Committee of the Association
to furnish you with a foundation or material upon whichto
of Railway Executives and introduced in the House by
m eet these political gentlemen on their own ground, and
CongressmanPercy H. Stewart of New Jers ey, und er the
emphasize the nec essity for their taking some definite action
sponsorshipof the New Jersey Chamber o( Commerce. A
during th e present session of Congress, to relieve, as you say, t bill to accomplish a similar purpose had be en introduced by
the present chaotic conditions of our railroads, at the same
SenatorCouzens, but it "'as considered "extremely disap •
time proving that the latter are not alone, but are backed
pointing,"so the railroads put in their own.
by solid public opinion in the accomplishment of this result." Following its introduction, A. P. Russell, vice-president
Harrison was told that in proceedings leading up to pas- of the New York, New Ilaven &: llartford, urged that every
. d b t onism on the
sage of the resoluuons there ha een an ag effort be made to conceal the true authorship. Fletcher,
art of a small minority bloc of barge-line advocate~;b11d1 ho_wever, thought the measure should be circulated among
P . d "scenery an
that this minority was occasionally use as
"performed
. ti .
very nobly in 11s case,
know it.'' In other ,vor ds , to ma e
although they o
.
k the proceedings 100
d not
k real,
d to give the
I ~!road people so that they could familiarize themselves
wit~ its terms. He therefore inquired of the members of his
l~gislativecommittee whether they saw "any objection to
the minority of barge-line advocates _,~s use c.irculating this bill, ,vith the statement that it was intro-
duced at the request of the Chamber of Commerce of New
of authenuaty.
,vhole shO\\Tan appearance d t11eir legislative JUa·
Occasionally the railroads have use1--1 and state Iegisla·
chinery to help ra roa il
d shippers on = · l Jersey, followed by the statement that the bill seems to be
 A 1' 11
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_In Jun1.'. t9~5. F. (~. ~;~i:·:•·•('ht·tl by \V,1>h
. ' c1i 1 • •le, <.:01n111illl'l' shtl\vt·tl th,11 • \ . <"NitIll
I
ih1 •1n. s1•111 to Fh'tch••I'1;11,•1
at1on re-quested ..,,eu1ge
,.. , - •t'cl hy 1ilc \Vhtt 11· •o the /\ssor1atu>11 ol
(' I of tht • C)hio l''-•hro
ll tly · ·1 •11I
IllI' I I hill~ Wc'l'l' St'I •
an1ber of Co · • 1nntll1•r. scc-,c · As'll(
•i,
Ch
.
111 opposition
1nn11 ·rce 10
to
Chandler replied ~~::h~! ..
•
.'
1ary of ,1
nppear nt Congrcssio
ir~~r~~~ocinplo.ycc. ~
p:.:~~
I ,e
,:~~i':~
1
11~
Ohio
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•nc11n
.I tl1•1t I' t•1, 11•1id the1n hy pc•rso11,1l
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Lt,11
,. ,·vith the cxplannuon
r11CC1<
•
· •

the Chaxnber ,vould b . . n, assistant sccrct·1ry u11rsc1nenL,

"
. ' e available r . 1 • to g
[D ixon] ,vould ho . 01 l tat service. "II
' " 'eve r, require coachin b c
other experienced railroader " Ch g y you or some Joseph I-1. Iiays, who [or several y.ears hns beet~ counsel
kind of • ' andler advised. "If th' for the \iVestern Association of Ra1l" 1ay Exccuuvcs, W:\S
arrangement appeal t is
touch ,vith M o· s o you, I suggest you get in prior LoMarch, 1932, active nationally in the a[ai_rs of the
At r. ixon and work out your plan of action."
the request of Pelley, representatives of Chambers of truckingindustry . He was a roe1nber of the Executive Com•
miuee of the Truck Association Executives of America and
Commerce and other such organizations ,vere induced to
general counsel of the Iowa Truckers Associ ation. In
testify against liberal railroad legislation. For example, one
1932he resigned these posts and went to work for the Chi·
W. H. Day, of Boston, apprised Fletcher that, pursuant to
cago &: North Western, the I llinois Central, the Chicago,
the request of P elley and others, he ,vould appear before
Milwaukee, St. P aul &: Pacific, the Rock Island, the Great
a Senate committee in opposition to various labor bills. Day
'\<Vestern and the Burlington. He announced that he was
stated tha t he would speak as a representative of the New employedby these railroads "to carry on a campaign relative
Eng land Shippers' Adv isory Board, the Ne,v England Traffic ~othe co-ordination of raihvay and highway transportation"
eague tl1e Manufacturers' Association of Connecticut, Inc., in Iowa. The Truck Association Executives apparently ac-
L ' · · the
the New England P aper and Pulp Traffic Assooauon, 0 f cepted his announcement at face value. Actually he ,vas not
N Bedford Board
h
Boston Chamber of Commerce, t e e,v
. Chamber of Commerce.
Commerce and the Fall. R. 1ver £ Commerce ass1ste
The Chicago Assoc1at1on o ·11b'll
. d in the I employed to co-ordinate raihvay and highway transportation,
but to harass high,vay transportation .
. With the help of the railroads' lobbyists, Hays succeeded
. t the Petteng1 1 ' its expenses in obtaining the enactment of ordinances in Iowa cities to
railroads' campaign to enac W RaiJ,vays CoJll· limit the carrying capacities of trucks and to prohibit use
. 'd by the estern
in th i s enterprise being pa1 . o[ trailers and semitrailers. His idea was to have towns at
mittec on p ublic Re lati~ns. . nt of traffic of the ASSOC•·
J. 0. Kerr, assistant v1ce-pres1de
 tJ NR£GEN ER/\ T £
260 ., ot.DS solicitor
THE PRESSURE ll Rt.XL~ I-I- Kad e, state .
brid ge h ea d s over tlie M . . . Ovs " Bays wrote s. . "I conceiv ed a
1ss1ss1ppi ·xneago, W t rn Railway, . f
so to prevent use of h pass these orct· ,,50111e
u •· North es e . late the activity o
~ ea vy trucks . inane wcago ll'- to stirnu
ro bolster enforcement of h1n transcontinental es and oftheC ose of which ,vas t of the truck load laws.
rated a reward system f sue ordinances h . traffic.
that courts be "carefull
or enforcem
h
Y sc ooled ."
ent officers and
• e 1na
ugu.
suggested
l plan,the p:iials in the enforce;ien this problern, however,
t::;ical
1ocal difficulty surrou:h1:fues or towns have equip·
I-lays usually explai ned th h 'fhep fact that very few _ofsu_ stion could be weighed.
d at e was m k.
stu y of truck transportation and . a ~ng a thorough was :h;pon,11hichthe veh1cliesin i::e cities and towns have
transportation in order to d . its relationship to r ·1 I
lllen . of the o,va , . . 1 t
. eterm1ne the l a1 ndersecuon 4995 . . ht limitauons. It is a rnos
tr~c,_ ~h~ direction of its flow and "the vo um~ of truck 1 U their own we1g h'
therightto enact . . ality to spend money at t is
po ssibiliti es of fitting the two . . evaluatton of the . • duce a mun1c1p · • l
h services together " "T . irop<>ss1ble
to m h' h 1-s absolutely essent1a .
e reported to the railroads "h . · his," hi except that w 1c
. ' as given me th timefor anyt ng . t the School Fund. Ho,'l·
turnty to conduct my activities without . e oppor- "Finesunder the state Ia,., go in o . .
th fa quesuon, althou h
e ct that I am also interested in stimulating the f g finesfor violations of city ordinances go into t~e city
ment of t h e law 1s · known only by en orce- ever, ch . . buy equipment
- • d
a 11m1te number of 1 generalfund and it is legal for su c1t1es to .
persons _and only ~ose to whom it has been absolutely neces- fromthis fund. I have therefore made arrang~ments with
th
sary to impart this information." Black& Decker Manufacturing Company, wh ich has e
He induced various state and local agencies in Io,va to patentand exclusive marketing rights for the portable hy-
carry on a vigorous enforcement campaign, and personally
trained inspectors in the weighing of trucks. At his request,
1 draulicscales and which are so usefu l in the weighing of
motortrucks. I have selected a salesman for them and am
numerous inspections were made at strategic points where equippinghim ,vith one set of scales.
l "The plan is for him to go into a city or tow n situated
great numbers of trucks found it necessary to pass.
In order to obtain passage of a truck-trailer ordinance in ona trunk highway in Io,va, to present to the City Council
Davenport, Iowa, Hays "hastily formed an informal tax· l a city ordinance with which I will furnish him and induce
payers' committee." He hired four girls to induce_disinter- the council to pass the ordinance, which ordinance will
ested property o,vners to form a taxpayers' co~mittee an~ embodythe identical terms contained in the state law and
speak their opinions at a hearing on the ordinance. H whichshould meet with no resistance in its enactment.
. . . £ th ·1r ds behind ,vhat ap· "After the passage of the ordinance the salesman wil l then
thus masked the act1vit1es o e ra1 oa
. l t 1 nonrailroad organ· coachand train the local police officers, etc., in how to
eared to the public to be a comp e e Y th most extreroe Weightrucks and how to handle prosecutions, etc. , and will
P
ization. He did not hesitate to resort to e d . ned aUo\vthem to use our scales until enough fines have been
• . O
f ordinances esig
forms of decept ion to obtain passage h'red a collectedand paid into the city genera l funds to pay for the
. . d st I one case he I
to harass the trucking 1n u rY- n •thout allY ~urchaseof a set of scales for the city, at whic h time the city
• ffi ·a1
man to pose before city o c1 s as
apparent railroad connections.
a salesman wi
' 18 then to purchase the scales at the actual expense 0£ those
 £GENERATE
Tai;: PREssu APS tJNR .
,,·ho ,iolate 1 th RE Boys
itArLllo f J-ligh,vaYAdJlllO·
e a,,. and th D parunent o ""
other city or com . e salesman th . and set up a e 1 f the Western .n,,SO-
"I ha muruty. en moves o dations . d counse o U n
ve gone over the I . n to an. oOJlll~ }le ,"35 appoUl~e bead this department. po
:.\Iotor ,·ehide De pan Ill detail \\;th th isuauon-f"~av,aY [xecuuve~ tol t out to direct and co-
. uono . 1'P'-
tJJJent, he =-=ed1ate Y se £ the several western
and in fact th
.
15 a former state .
Partment and it has th . e IowaStatt
e man who is eu- full a
to represent the .,....1 pproval
l oa
• app01n
tu,.
ordinate
Lhe enforcement
.
lJ-1.U"'

of the
• • •
act1v1ues o
ch· o Railroad Pr eside nts
icag . els
,
lil.Spector . Thu; "'"" e com I
Black & Decker Com ... man is a salesmanfupany iJways.At a rneeung 1 f the individual ra1lroa
ra th eneral counse s o . . . L d
tion with U5 wha••- pany a~d apparently has no co r Lhe conference e g . 1 cal attorneys in c1t1es s1tua e
'""'ever. Railro-->- ca nno · nnec. enlist their o d
• • •
cnt1ozed for his activities."
4\..13
t in any waybe weredirectcd to . f motor trucking to work un er
1 • ipal arteries o
on the pnnc_ . nactment and enforcement
f
o motor
The
trick "worked beautiful! so fa .
weighing of truck.& wa., concerned~' ti r ~d $llmulation of Jlaysin ob~1n1ng the c d •I ped a system of en (orcemen t
tJ•. , ayssa1 .IIcalM>organ chicleordinances. Hays eve o .
·z•d
J~ a puo• 1c1ty!" campaign, crnpJoying C. W• MC·r,3ury, for.. ~ . ·tory bMc<l on political pre ssure, espJonage
~ J m we.1tcrntcrr1 . loycd
mer y a c'.ty c, ttor of the Burlinglon Gazelle, t,,pul,li•h a
n<·w1111erv
1cc 11hccLcalled '/ 'Jut 'J'ran.,portatior, 111
, 11t:tit1.
fJUIJlic,11io11 wa11 to "deal only wid1 lcgitinrn1c n<:wa:md
Tht I ~ndtrickerysin1ilar to that which he pr ev ious y ernp
in Iowa. .
1

.
·ro radlital<' the wo1k of lohhying for motor vehi cle lcgis
<<n11pt·1c111t·di101 hll r,pinitJ11," a<:(ordi 11 g l.<Jii~ ,,wn :11111c11Hu~
- la1i<,n,
he e,nployc•clone Wa1 r<·n Wright, who was fo11nci ly
u11·n 1. Nf/L ~, w,11d w1111Mlid :du,111 1flt: JJutletiu being l1na11u•d n 1nrm hct of 1hc C~rntral Motor Freighl A~,ori:11io11. W1ij,1.lil
1,y 1111· J,,w:i 111il1,,;1d~. r, WU/I ti(•III I(/ l [,11 Jowa IIC"IV\fMJll"tl 1 1m11hu.1rcl a bail ho11d IJ11Nitt1 •~~.cln1wi11p; hi~ rlicntc·lc chit ·fly
firn111wr~on~ancfttl"d 1'01 viola1i11p;n,otor vehicle lnwR. 'f he•
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 £NE RATE
Tfi.E l'REssu
uNREG d
JLttoADs in K ans as an
recon1mcndat·
of Competit ive T
f\ss . .
' ions of a .
special co1nn1i
ransportati
RE Bovs

ttcc, set It
I tt.,.,
. States :f{ighway
No 40
c.rete bet,¥een I{a1~sas
dYof tJoited er cent of the concks I-lays' organizauon
. OC1at1on ,vas placed . on R esearch. A ct·p a Division stli d that 75 p ·1 d because of tru . d hotograpl1s of
in charge o( the W in charge of the E ircctor of ti 11101iC eka fa1 e d enlarge P .
est, and · ast, 1-1:ay. ie . itYand'fop ,. of the study an ut t11e conclusions
to take char()'e o{ h
d. o t e Sou th R
another direct s ie1uained
or '' 'as a .
I C resulll" to " set o
. ir cctor, reported t h . . . J. Littlefield PPointed re1 1'1-otea in such a v1ay as . hesitant," J-Iays wrote,
'f o t c nation 1 ct· ' the E I higJnvaY 1 " "l was a little f tern per•
!\ r. C. L. Bardo f th a trector that I " aster11 I ie . [orceful sty e. f such a degree o
H b . o e Ne,v J er T te talked ina vety. ·culating a pamphlet o " arranged to change
e el1ev es his associ . sey axpayers' A . . to .. bouten I have no, . .
,ve ho auon ,vould sponsor ss0Clat1on. 1 a er our signature. . p otective Association
pe to have Pr in ce ton U . . the studies wll' I 3tureov Tri -State Highway r . ·ation'
• n1 versity Ill k .. 1c1
0 CC':lSlOn 11e \\'Tote iliat "ili d a e. On anoth the nan1eof the, . nal Highway Protective Assoo . '
Et1gineering Econom ist, ~:;~eJs ~:de. by 1,Villiam D. Eru1: to be kno,vn as N~uo over t11e signature of this or ·
Hoboken, N J for ilie Ass . d stttute of T ecl1nology andthis bulletin ,v1ll g~ out that tl1is group will be useful
· ·• OClate R a1·1roads of N ' ganizatio n. It is also believed l . men to st irnulate e11-
"":lS released Janua r y <>8 It sh t1 e,v Jersey, . . 1 · g publicity, emp oying ..
· - · O"'S lat th ck ·
Jersev arc subsidi ed th e tru ' S in New m orcu aun b f ther general purposes.
z to e e..xtent of about $18 ooo t and for a nuro er o o
forcemen, . £ . d not because of heavy
annual!,. and that the small ttuck should pay additi~= The truth is that the bigh,-.,ay a11e - . in its
t:t..~esof about $25 and the largest ttuck $1,4go annually. rruck traffic-but because the concrete mixture used
1 minutes of a meet -
On the strength of these findings, mileage ta.x and port• construction,-.,asnot good. Nevert h e ess, .
of-entry bills ha,e been introduced in the Ne"· Jezsey Legis- 1 ing held by the Western Association of Railway E:xecuuves
·
lature. To keep the railroads in the background as much as indicatethat the consensus of the e:xecuuves was th a t " such
pos.gble the New Jersey study has been sponsored by the studies"were "of great value and should be given the widest
Xe't\· Jersey Ta_xpayers' •.\ssociation." distribution possible." Of course, there ,vas no hint in the
The Divisi on of Competiti, ·e Transportation Research not pamphlet that the railroads paid the engineer or financed
f
only 1cceived reports of deception from its eastern director the printing.
- • • ·1 · rts from Hays. In a Hays believed more effective work would be possible if
b ut also continued to rece1Ye 51m1 ar repo
railr ds oper· menof prestige could be induced to participate. Accordingly,
letter dated ~.\ugust 15, 1934, Hays -wrote that oa mote
. . South Dakota bad devised a scheme to pro the Transportation Association of America was formed. P el-
anng m eral of ilie State wasper· ley approved the venture and obtained the support of such
enforcement. The Attorney Gen I e who 1vas men as James L. Loomis, president of the Connecticut
. railroad emp oye
suaded to deputue a young. f sca}es. This was Mutual Life Insurance Company, so that the Transportation
. ped by the railroads with a set o the Tri· ~ation of America could be sold to the public as an
eqmp rgaoization kno1"11 as ·1
accomplished through an o . . n financed by the rai. independent rather than a railroad-dominated organization.
State High,wy Protective As,sooaoo ' Donald D. Conn, who formerly was manager of public
Dakota. . 5 ._a Jllade 3 relations in the Car Service Division of the American Rail -
roads of Sou th gineer on bis c.a.u
Hays also reported that an en

f
 ~66 S tJNflEGENERATE
THE p
road ·-\ssociation REssuR.E Boys RAILROAD • Railroads.
Association of .Amencan
Board
th ,1 • k
or •' ,\·as and l\·ho ,vas
d eSign
.
.
active · Shi
111
nips in the
directors . "railroad att1tu
. de" was satisfactory they were
r .t their
e ne,v org-;uu . 0 ated to hancU PPers· A. .
v· o zauon He e the dv1sor p1ess their ·1roads went so far as to so ia .
ice-President of the T subsequently b promotion f Y {) d over. The ra1 b. ·n the .Association, although it
The plan call ransportatio ecazne f:x or I 1'355: f [Ileillbers ips 1 da th
by the 1if ed for public pro n ~sociation of ecutive erJJP
ioyees or ro a nda opposing the six-hour y, e
. e and casualty . motion of th Allterica d P P ga h
(lissellllnate b·Jls designed to benefit labor.
s1dered the b insurance com . e organiza . . . . law and ot er 1 h d d
est ,vay to gi h PcUties Thi uon crain1un1t . labor as a target on the one an an
appearance.
would deternu
It was l ve t e organization.
~ anned, however th a non-railroac1
ne policy and '
s wascon.
at the railr
1 . teIII of using h cost either in the form o f contn "bu-
fhlS sys .
lling it to pay t e
compe . d d wages on the other was condemned by
employees to th . procedure fu . oads . or in re uce f R il
e organization ak. , rn1sh full . uons "Vb" ey president of the Brotherhood o a way
publicity machinery d " , m e available th . ·Utne A. F. • itnbefore
' . di B oar d a p-
f h an stand th e railroads' . the Emerge ncy Fact-Fin ng
o sue publicity,,
. . ·
T
o secure the su
e expense of d" .
. istnbution Trainmen, . 8 Whi
Pointedby the President in the ,vage dispute of_ 193 . t·
pan1es, it was stated that pport of tnsuranc
was t " another object f h e com. ·d· "The record of the Wheeler Comro1 ttee showed
o reduce high,vay hazard " o t e organization ney sa1 . .
that the railroads, ,vhile making a plea for wage reductions,
In accordance with Hays' _s._ had wasted millions on lobbying and propaganda. • • · Hav-
officers and directors . l d or1g1nal plan, the organization's
. inc u ed pro . ing thus ,vasted their resources, the carriers now come fo:·
industrial, aericultural fi ·a1 m1_nent representatives of
ward ,vith a demand that labor, the very target of their
H t> ' nano and insurance
arkrader, director of traffi A . groups. T. T. propaganda, pay the cost thereof in reduced ,vages."
became chai c, mer1can Tobacco Company,
. rman of the board of directors. T B Huff
dpresident p of the American · S erum Company, became · · presi-•
4
ent. elley and H. G. Taylor , chairman of the '\Vestern i
Assoc.ia uon . of Rail,\"3.f. Executives, became directors after "Public alignment" of the insurance companies and the
the "public alignments ,\.-ere established." railroads in the Transportation Association ,vas not surpris-
Fred Sargent. president of the Chicago North '\Vestern ing. Community of interest stemming from the large invest·
ment of the insurance companies in railroad securities has
Rail"4-:i y. resented the o.~ of the new organization. He
existed for ,ears. Railroads frequently have found the highly
protested to Pelley, ''Frankly. I cannot see but ,,hat the
respected big names of the insurance ,vorld useful props.
?nrposes and funcrioru of the T ramportation AssCJciation For some reason ..,-hich escapes explanation, insurance exec·
of .\:rne::i.ca are direct dnplirations of m~ of the branches of ut:m!sha.e come to be regarded as the bon ton of American
"'-od: n01F co~ hT the _'\.ssX:iarion of ...\.mericanRaiJroarls- business personnel-aloof, enormously wise and somehow
•
TI!-e ~ ~ct;!;:E !O m;JOY !leW ot 0 ,,nizarioo:>. and die ~~ benign. They are the sacred cows of American business.
- - ~ ~ . rJO'I'
tuM!J"f ,I::X:: ~ ;re 50 ru:m:;etOUS. t:r:;tt dJc hc;:cen IS Although ~ immanet companies ba,·e been exposed
~ep:-a,cdlf ;is bweaocratic lnuoan mganizations which cb;uge
 tJ N REGEN ERA T£
!?68 tti\1L1toADS o le crislative proposals
THE PRESSUR 8 analyzing abo_ut 10,':ce f~r or against sorne
exrt•ssi, <' rates ;ind ini . . • E o vs
open, and offering ad testimony before
n\ert'c.' l · •
. Ht1ng and scr:nchin
h,1los S<'<.'n1to h'
a reason for it. \\ ' h , ,
' 111
the rou gl
.· l and tun1ble
. g ,, uh the best Of
c t1111arn1shed d
p . an u ntarnishab l
then1
of coni.
· their
:~:r~
• t.11e
11
1egisiati~~isy:::ot all it does: :~::::ttee
· 13ut -...
u1elfl 1auonal Econorn1 h
bas disclosed.
tl1at the insuran ce
or
•
ance director. Coot 1·do .
c 1 a resident
t I1e kindlv rolt ' of ·ld .
c: e1 statesn1an I b
,,;c and Hoo . b
steps out of offi
e. Th
ce and i
. . ic cco,nes a lif . nto
ere is
e 1ns1 .
' p0rarY'"
,11e'felll tllittee's record a re
1 ady s o,.\Ts
'fhC Co!ll all the dodges. It has P
b \(l!O'"s . •
aid a reporter $100 to
di o-s of a state
on the procee nt> . 'al

,
..l l n1ost e,er . 011·1 • , er oth did . 11. tob y . ·de inforroauon . d d crbters of Ulfiuentt
· e, superpron1 · It. So I
ly 1nS1 th ,\Tlvesan aut> f
c-ountrv is not in the l b" tnent citizen. l\Ioreoye las iuPP entertained e l . lator with loss o
• • 1a tt of lookinn- r, the
Ol'g:\lllr.lt lO llS \\'1th $28 000 ;:, too searching!) •
1egislature, threatened a doctor · egis d " . ht "
• .000.000 of a at stateJa,vmakers, . . on fees unless be vote ng '
O<l0,000 C'U$tomers. • ssets and 6.t-00o .. h·s insurance e,xaro1n_au ts elected to legislatures,
But for all their reputation of . • . business to agen 1 f
co · piousness th • throwninsurance f 11· f the entire personne o a
mpan1es operate on e of the
lobbies and ~ - bo
. . . e u1surancc
most realistic and efficient of indexedthe r.01'bl es and o ies o . d letter telephone an d
, • to a ut the sam . statelaw-making body and organize '
roads. The, . e pmcuces as the rail -
C3.0 co-operate \\"tthout ·r relegraphcampaigns . . s ,.,,.en as operation
Operating under the n:une of the ,\ _so~ing fea~h other. And it is capable of petty conspiracy a f
311<:e Presiden . • SSOCJauono Life Insur- in the !rrand manner. There is, for example, the case ~
. ts. organued after Ch:u·les Evans Hu o-heshad
e'-poscd the "clandestine" methods of the insuran,: . HaroldoDobbins, a member of the Georgia legislatu~~:
1,...J:.
~-
th l . ~~ men 111
e obbv maintains a Hying squadron ,,·hich can be 1 1934.In December that year, D eputy Insurance Co
. . ffi · l ,,.,.. te to Robert L.
sioner Le,vis A. Irons , a state o c1a, v• 0
.
~ed to ~v one _of th: 48 state capitals or to "\\iashington t
as need for its sen'lce anses. GroYer CleYeland, incidentally, Cooney,Ne,v York Life Insur ance Company lobbyiS , sug-
l\":lS the first manager an d general counsel of the organiza·
gestingthat it ,vould be a "good investment" for the co_m-
tion. He gave it the respectability it needed to live down pany to pay Dobbins' $10 insurance occupation taX- Dobbins
the scandal brought to light by Hu ghes. had complained to Irons that "he found himseU unable at
The job is held toda y by \ "incent P. "\Vhitsit t. He and his the time to pay the cax levied against him." As Dobbins was
large staff are supported by the insurance compan ies on a co- slated for chairmanship of the Insurance Committee, Irons
operati ,-e basis. Chief legislative trouble shooter for the felt that the mighty Nev,r York Life Insurance Company
organization is Robert L. Hogg. personable former Con· might need him. Certainly his price was not excessive.
On another occasion, Cooney reported to bis superiors
gressman from \Vest Virgini a. Local lobbyists in the sta~e
that he bad induced the First National Bank of , raldosta,
capitals are recruited from the ranks of agents for the big
Georgia, to send orders to "the Honorable Nelson," a mem-
life insurance companies. \Vhitsitt . Hogg and company make ber of the state legislature, to withdra,v a life insurance bill
it their business to see that overzealous state legislatures ~o Nelson had introduced. The bank "'as considered the proper
not try to solve all their tax problems by levying ~teavtl~
on insurance premiums. The Association boasts that tt oper
l agency to command Nelson because it was his "financial

t
 UNREGENERATE
JtA rLaoADS ce formed the Fue l -
TH.E PRESSUR
backer" c E Bovs
ber of Coxnroer S
· ooney b r . the Ohio Chatn . nal Foundation. Samuel .
this le · 1 · ' e ievin g that " £rte, . Educat10 · al
. g1s atlon is to kill . .. the easiest '" o1e ..,.ransportauon d thorized to prepare mater1
friends.
Th
it, appealed to N ay to hanct1
elson' o11•cr· ~ put in
. charge . an au through the schoo 1s. W yer
e Association has s banker
e r,vl'e
r was ·bution
. and (iistr1 .th the Srnitlisonian. 1nst1tut1on
· · 's
blicat1on
extension of term in spent much time and rorP 11 onnected w 1
pr . surance ivhich . money fi I msprevious1Y c es 1·n pennsvlvania. In 1923 t h e
. otecuon at less mon . ' gives policyh 1 g Hing w• l"sourc ' th
vised by former Justic:y ,Lan~ the l\Iassachuscttsos~crs equal slndYoC naturad W er's work and recomme11ded that e
pense ,vith the se . o111sD. Brandeis i )stein, de. utilitiesfin~ll~ailro!d add a transportation chapter to the
rv1ces of ag·cnt n 1908 to d' 1
cost of the standard . s and thus brin is- pcnnsylv~111abklet and distribute 25,000 copies of the en-
circulated an,ong, thep~~~cy .. In a statement co~1::~11n_ the su1itl1son1anoo .
cd version in Pennsylvania schools.
\Vhitsitt boasted that ... t e i_nsurancc c-on,panics 1. cnua\iy ln!cneral <.,V.vV. Attcrbuxy, late president of the Pennsyl -
SIX savings J'f . n 19 3r.
t~ th : l\!aS&'\t·husctts la\\•, f.liled . ~ :nSurance bills, sin~il;;
• 1
. . d to get the eastern i·oads to pay tl1e cost of a
\'llll\1\ 1 trlC } •
st1tuuonal an1cndn1ent in "f' in . , c states , as did a co 1 chapteron transportatio11. Failing _in that, the Pennsy van1a
b l\ 1ssour1 1-0 • • n-
, u~~ anks ,, ,ith or \\'ithout 1·t- .
s.'\Y •
per1n1t creation of undertook the task itself and contributed $37,500 so that the
Dt l Ju : 1nsur:in d
te to t 1e extraoi-ditl""" ... J c oency of •J ce• ep:irttuents •..
ffi . booklets would be distributed. Of course, nothing ,vas said
.and the help it has l'<.'«'. _ _. .r...... t ie 1nsur:tnce lobb) in the printed u1atter about tl1c railroad's contribution or
f 11 • ' l\cu u~,n, tnost ll'
c.\rc u ' a,-01d p11bliotion f • c\\-spapcrs. ,vhich
nboutthe utilities' involvement.
of the (,Id line ronl=l . o ron,p,'lr1so1\, bet,1·een the rntes
hanl::s. the Br..11\d . , , r: tncs .,nd the 1\f;is-'l:lchusettss.1Yi1•~
· et~ ;s\ ten, h ls spre d · "
1 The same n1ethod '\1'3.S used in the c.'\se of the so-called
Fuel-Po,l'er-Tr:i.nspo1·tation Educational Foundation. Its
sr.tte--~e\\· \ 'or t... F(.'Cleral l .. : . :i. n, soyears to onh· one printed n1attcr specifically stated that the Foundation ,vas
('('tnp.,ni , • · egi.sl.tuon to regulate insumnct
ft-.rtl\ of l on ., n~tt<--.nal~ .tie .,nd to rnake .,,-:iil:ible S(lllte independent. As a matter of fact, it "ras financed by the
• ~ • ('\~'-('t~t ll\.~Ur.\ll('(' I:() 'l\'~)T'l-en, ll0\\' vic:timired by milro3.dsand the utilities.
n,~.u~tn.al fl'"lic, S-'l.:-si,,en ~nl to be in the offing. ho\1-en-r. In the sumn1er of 19!!7, Bernet and Elisha Lee of the
Th• l!\$\lr.ll'l.«'
• k,bh, pniu.\, .........
•,, 1s . u1 .,s
. fur ahnost tuuch rou.::h Penns\"l,·.uua Railro:id p1-esented to the eastern railroads
• :'\IX\_~Ul _the •~,t f<',1\~.\~ ~s its old .llh. the railro:1d Jobb,. the question of financing the transportation campaign of the
h:as h.ld 1n the l.\st tt\\·. Found.'ltion. The Eastern Presidei1ts' Conference decided
that the financin~ of the Fo\u1dation should be left to the
5 indi,i.dual nil~ds. ..\ccordinglv. the Pennsyl,-ania Rail-
~.\lth..~ ~nerul, ..-~utter ~nd n\Ott scrupulon.s in their toad. the "Ne\\·York Central. the Erie, the Nickel Plate , the
l...'lhbTin:£:thm the ('kctrk utlliti~ the railro,ds could ~ \\'heeling&: Lake Eric. the \\"abash. the Akron, Canton &
~ :a~ w tt,mpoti,1i.1 tt'l di~minate tht!ir pro~,:ind.i Youngstown. the Baltimore &: Ohio. the Chesapeake & Ohio
~ the ~w than o.-mhl tbf: lilot,-:ttt ~D- On ..\pril and the ~odoTh. &: \\"estern agreed to share C."-penses on a

f. 1~;. at w ~ oI J. J. ~ . then president cJ pro Tat\ ba5"-

 273
"'vENEttATE
s oNll-"'
n j\tLlloAD
.... ,, were pe ortn
rf ed by the
Tl-IE PRESS
In •9 3 1 B IJRE novs ·f the wor,- "
t , ernet sou ·h . than 1 . f their own-
o finance the Edu g_ t further funds fr ore elfeeuve h an orgaoizat10? o f the Committee on
memorandum in thec~:onal Foundation o: the railroads fll throug
railroadsti E E- Loonus, c
· hairrnan°R ·1roads opposed secret
road, it Was felt tl1at es of the Chesap~akeccordi~g to a ,..,tfell Y • Eastern ai '
J\Pr I tions of the ·1 oads in the long run.
year for five
D .
Wyer should ha
years to carr
an1el Willard that a " . ~ out his program
on the work" m11111numof $40 o
& Ohio Rail-
ve at least $
40,000 a
. Bernet Wrote
1 poblic Re a dangerous to the rair h
""nda as
propar,--_- d the railroad ex.ecu
ti ves t at 1
.
·t would be a mis-
ney in such under-
J-leadvise d spend their mo 1
done" the coal
I
was a sm II
. a amount for the "
-carrying railroads
, oo per y
ear to carry
good that can be
t takefor the railroa s to the Ohio people is not the o~ y
,.· gs "The plan of . "d "Others are planning
ta,.1n · . t " Loomis sa1 .
W
t was first agreed h
' . .
.
t at the annu I
yer s act1v1ties would b e s I1ared e a cost of support·1ng 1 111overnent
lO lllake a sum
of this sor '
. ·1ar effort
0
ur
study of this situation, how -
. ·1 ads make the greatest progress
ern and the eastern railroads Af qua 11y bet\veen the \vest- . di tes that the rai ro 1 .th.
( • ter app · ever,m ca . ublic relations work absol ute y w1 in
a ion, the western roads be an rov~ng the appropri-
whenthey keep their p k . hools and colleges has been
but the Van Sweringen r g . to oppose it and finally all . hands Our wor 1n sc
ines ,VJ.thdre,v their su 1 the1r_own di. during the past two years and our speak-
ever, L. W. Baldwi·n , p res1.d ent of the M. •pport.
. How- steadilyexpan ng h "th many
sold on the idea and his road .d h i~sour1 Pacific, ,vas ing engagements have brought us in close touc wi
N f pa1 t e entire ,vestern quota
leaders in educational institutions. We find ~hat the one
one o the Foundation's pamphlets or advertising circular; l thing they are inclined to fear is the introduction of propa-
ever showed that they ,\'ere paid for ,vith railroad money.
~yer was confronted by Wheeler with a letter from 1 ganda."
In 1927, when the idea of the Foundation was first ~old
Elisha Lee to S. P. Bush of the Educational Foundation,
to the railroads, Arthur Thompson, president of the United
suggesting that the pamphlets should contain a statement to
the effect that the railroads were "contributing to,vard the
prep arat ion and printing of this material." T his, Lee felt,
' Gas Improvement Company, stressed the value of concealing
railroad propaganda behind an apparently independent re-
I search organization. On June g, 1937, he wrote General
\ll'OUld disp el the notion that the "railroads are a party to
Atterbury: "iir. Samuel S. Wyer informed me today that
any secret pr opaganda ." Eventually even Lee came to appre-
11:r.Robert Binkerd, vice-chairman of the Committee on
ciate the value of railroad school propaganda in the guise of
Public Relations of the Eastern Railroads , is to have a con-
i11dependent scientific research. .. , ference with him in Columbus, Ohio, on Friday, June 10,
On June 8, 193 1, he ,vr ote General Atterbury: . I recentl~ to take up the question of proposed tran.Sportation educa-
discussed this subject ill'ith 1\Iessrs. Cro,vley , "\Villard, and ti.onal program.
th th railroads shoul
Bemet and it is felt by all of us at e . sinct "I understand that the Educational Foundation of the
conti nue their suppart of the "·ork of th_eFoundau~ds Ohio Chamber of Commerce is ready to handle this matter,
. . ~ ..-rfnnn.ino- such a meritorious sei,'lce for the. ed e and am writing you this note simply to give you this angle
u1 accomplish ar
1t 1.s .....-·- :.
and it is our thought th at the res ts so 1
I
 TIii>. Pll"'S "
-"-•.,UR.rt nov 8
of the situaLion· ' 'and if you l 11t11k . Wt•II r .
ntntter be handled that w·1y . o II, N11H g<·s1 ii .
" () ' • l,ll 1111
111CXpt·t ie111·c• j 11 p,Cllt1Ny l va111·1 . ' lH .
•
opt'( I 1lu11 1h1· ll.i11N11011111 '1011 HIC)l ',y ', you • will 1<·1 ·'•dl , I Il'Vf'I CJ(AP"f.Ell 16
pt<1tclt'11t n1-11 •n, y, iN not only 11 , <01111111-1 f10111 i111 i1 I
I I ltll( 'll ( "((•>tll Ht•
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S v,11 OIIH c·d11t ti ' , rflie Labor Front
• 1'11111111' Wl11•1·lc•1, N11111111111n 1111 I ,1 1111,111-1 1111111~"
" l 11' li 'Nli111 '
I
1111111, t I u• ,vh11h• 1111NNihlli1y,Ill< I p111JIONt•, 111 o11y, Nilhl : " 11I r the New Deni, when labor was all
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, • ()1 'ly • i
lVI' 11111111
• • •
the largest single unit in lltt• ,\ . F (I~ , ' ' ' 1~ th.I I • • •
j
ol w111kpro ~c>I.:1rrcpt the •111,lo c·d .111lV-11cl11
, ,•.11101111 of I lt 1•
lor several years that I he F\•d•·r1t'.ol I ... h,1d l>t't·11ch•111t111·
.· d . ' . ion s11h111 .. . . . ' inR
t 1es an . organ ize th e mass prod11c1 ion i ~ i gc ,,_sn aft t ivat. ••• V-lt:C••:::11i11u1in ,111 ,11,ny of/'t'.~~1h~lct~'C nud di1111 ll11t Io11
perpendicular uni ons taking i·n . II rlus11H's i1110I .
11 • ,011s1 lY
1 11t Fear' u lack o • 1"
Th · · a ,vorkcrs · K, 11ncJ1l, • • • l he l c1110VC( • •
is r ea listi c approach to th . L tc·gardlc•ssof c1·1r

I
k
d
. .
wor ers in indu str ies where ma I .
.
p ace skilled craftsmen was resent •d I
cp 1oi lc111or .. ..
o1ga111
c 11ncry Jon . .
g since had re.
·•·
1.1ngthe
l covent of business] ... Ulllll
'fhCp10
Aftergiving dccc11L
C tl\C 'll)l 011

·r . •luctallL· l1p !IClvu.;

ly ()llt ' clllll !-\•
the p11r. nou11cctnc11l could hav_ , ' . ·c to the Ad111i11l11
- : '~re for labor th ou any other_ ill t 1~•
. I
•

unions, whi ch enrolled workers ace c d' ly leader~ o f the old

.
occupation~ rather than th eir attach
.
or in g to the k'l
ir s i ls and
ment to any O 1 • d
l ,rau·on that has done m
. LhC ruling .
c1·iqu c of the J1'(,.
dctal ,011had
.
T he chiefs of the craft unions were rel
.
payin g members, upon wh om th .
.
I .
~ c in . us1ry.
uctant to give u d
e1r sa ar 1es depended ,
p ucs- I historyof the nation, t r.,1·stto clcset L whal jt rcgal'clcd, 111
decidedto
be among t11c ''
the light of the igg c
. k'
8 lecdon returns, ,111a ~111 111g ll up ,
ti1c w ·1y up the gent lc1ne11of I he
I.

gardless of the lo gic of Lewis 's arguments for • d ' ~e-

. ·
uruorusm. "\Vhen he was again turned down at th 1
· f •
1n ustrnt
e 935 con-
• l . h N w Deal was on
Wlulet e c . h .
. C unc1lthoug t it po t 1
Executive o •• l .
• ' •
l't'cally incxr,cdicnt to con1t
t'll a little afraid of 1l1a1
•

vention o the Federau on, Lew is, wi th the United Mine

'\,~orkers and seven other industrial uniom, formed the Co.m•
ro•ttee for Industrial Organii,a tion and invited expulsion
I . en opposition. T 1cy were a 1 ,
?ut in op B t they co uld safe)y abandou scc·rclivcnce~ aud
In 1939• U 'J•J •
run their true colors at lcaAt part way UJ>Lhc rr1a11t. icy
which C3roe later, from the A. F. of L .
In the bitter rivalry ,-.,bich en.rued, the A. F. of L. gravi-
'
l could again afford to be themselves, the aristocrat~ o~ labor.
Bwinesshad to be given co11fidcncc and to hcl_l wit~, the'
tated to tw> side of hnsioess, and the C.I.O., trying to improve
the Ice of the m)(nganized and the urukilled-its prmpective
mcmben-allied itself with Pr esident Roosevelt and the ~ew
' unemployed. There wa, not.hing new .about thu1 att1I udl' .
WiJJiam Green, pruident of the Fedt:ration, Johri Frey,
headof the Metal rrrade1 D epa rtment , and Will ii•m If uu:hc
Deal. One of the resolu was that labor Jost mud> of its f.ora m, prc,ident of I.he Carpenter•' Union, alway, l1:1d l1·Jt
.IS a Jol,l.Nw UiSh O mentality. lYherea. a1J onioiu had jointd rnore kinship with Jioovc-r than with .R~vclt, ~I ht" ut1•
bas to
I ::,

;,matlnough the l\.,,agncr •.\a, th.ey 1eau.ere.dtheir

•

ttriployed and the unorganir.ed 1weauht.1pJ,er,, carritd w1,,.,

&eon r;q,1 1 cl the Piet:-'«½1t', snbit:quent Je~lati~e J'f'J- rJt,<.ardt and paid no duet, nc-vn u,ncerned tht:rn much .
J?Ola's,i;:>-¼111::25 the i111taraat wage and hour bill. ___..;, 'fheir indiff'ncncc r,-, the plight uf the 1.1r,t1nploytdw,t
E • ·e O'J1PJ....., d;e t~ of the Fedcrati()n into ,eri1,u1 tr,,ubJe after tfif.!
~ ~ on_;a,ae .o,:19;q,k:re .-hen the ~U\ ~
d ir.zc A. F. d L ,,,,, ri;iz ia J.f'm:ni ezririn '~h , b:i1t ~lief Bill of 1939 had been JY.utCd,Jl,,JJ,,wing the Miarr1i
ltrie, they made m, dfcctivc: protat at the •l11trp redur.ti,,n
- :n:::fi=:tirn:,.!,ir!:i ~-;: bare htt:n and, ~- r::r,,J ,
A#(,r rn the 111..e r-,,fthe appr,,p,iatic,r1-<'mly .f•,447,<J(J0,<><1<,
for tht-
...:1 ·tcr bJ' ~ y:-=Nioq a::iG.
'"' " • rA}3
cx,,.::i ~" we·~
(.I{ ·;~k
~ ..-we ;at: ru-1 t'fitire fu<al yea-r 19w-40 u Cl'nr1parcd with $2,2y1,<>f,<1,1><,<1
:id#,, .. d Jh=3a, .e:£- .It ~ m : ~~ rs,,t1Jtin the previtlUf yt-ar. While Jnivarc ~ploymt.'.rit h:uJ
- a ~ - ¢iClt!.~ ~
<:J ;. ¥.'.I:■ ·•: ~a
L.- d ~ s;r..6:;:g,
':L'ffi...&z<e TJi.it ftkJ'c:ate:dmaurially, they apparently felt that 1hc rcdi.u;.
..d5e:: - ..,.__ ~ _ ,. ----'
~ ::3!'
_.-1- _ _,,~ .,
?54 =-r:-¥ :ii,, J d "C ~ ~....----
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'1
 TflE LA.BOR FP.ONT 281
.,.11
.sor• \V IH<
• ·h w I " ,. n 1,.!lsonr,
,. novs
the bash, The Burke amendments, among
orr d I . 111ertarsleY (O--<YT
r ,..,n no-1nterference
• • ker,
-fro m-any -source JO
W<'apo11ag:ii11s1 invc n1ndc it '
Willi ti . orga11i·,t•d l·il
1.•sc : • ' >or at
isclcss at hcst
· a11d •"" PJlt !llosS·e,·0
,.vy-handed for anyone to ,upport---unlesshe said
o J,. t·lii cf~ . <rrd1111·11t.s
1 1111 on II 1 worst. a deadly
r I r11n I ', 1111 "" to<>0 be opposed organi,atlon of labor. Most Con·
tl.at
,.1111 . glt1 I >c ahlc to • •· c. sta
• ,( WIii Oltl ( r I lC,1l11.c'l11tc
ti . hook s, lhc A fri!Ol<lY
eJl.were not w1l• 1·1ng to do t hi's even 1n
. 1939.
rn lht • l1a11<1 11o f ·u, > f H1si11css · · I',ut . theic1r fonclcst· amt>".. Jl.
.
1Ili on gr
rh•
esslllfederation's thfee " ro~t " amend menu wonld not
ir.~c•cl in no·oO<I lun . •e t 1111l't(•nclly A<Imini sc same . ·1
'rncndn • bC",,.,.;nation- Th• ,ugge,uon of a five-managencyhad
o11nd the r l o sn ia sla the· A F strauon , also cnL,, l
f11nio1111for •cc. cratio , n a sa ti sfact
· '· of I could 1
•. as ,veil. Em - le
,.. purpo,<O' to get tid of the old B":'<d,wh"".''."embers
a Li me, considc . ory suhstit11tc f
ring it th c Icsser of t or co mpany.
ploycrs had incUr«dthe enouty of the Federauon by u,,unng upon
,vo evils. •-••t of the law without corner-cuttingor fa,oritism-
'fbis device also would have let the Federation come out

l1
2 [rolll under the embarrassing necessity of going through
withits campaign against confirmation of Donald Wakefield
a That the w alsh amend smith, the member who had been most friendly to the crafts.
' mendments could ments were actual .
Nebraska submitt ;ot be doubted. Senator Ed ly industry's Smith's nomination for reappointment had to be ditched
but no one in o e some even more destruc;ard Burke of because of the Federation's opposition . The story ,..,as told

l
them Th r out of Congress pa'd ive proposals,
that A. F. of L. leaders started their fight against smith
cha~ ey served thefr pu,pose wh.'. much ,t,endon to
to denounce somethin . they gave Green a under the misapprehension that he was Edwin S. Smith,
and so to count er th e charge gthobviously h worse than h.1so,vn another Board member, who favored industrial unionism
try. The Walsh amendments at e was stooging for indus- . most cases on the ground that it ,vas best designed to
m
Houston convention of 8 ,vent s~ much further than the carry out the mandate of the law to promote effective organ·
• 1 93 authorized th t h ization and thus equalize the bargaining power of employer
tion was secretly called to d a t e Green-Frey
eral council membe ·r t M. o: er by some of the more lib-
fac and employee.
sa 1am1 for betr · th The story might have been apocryphal, but it was told by
mandates. Neverthel ess G reen went throughaymg withe convention
his de• Joseph Padway, A. F. of L. counsel. In any event, the Federa·
man d f or three ma·JOT amenUUlents: .._ (1) substitution of a tion put itself in the position of punishing the Board mem·
five-man board for the three-man NLRB; (2) a requirement ber who had stood by it most consistently. A five-man Board
~t crafts should be certified as the proper bargaining units might have the additional virtue of providing green pastures
m ~ _cases where such classification is requested and (3) a for a couple of the favored Federation ,vbeel horses.
The craft union aroendment '"°uld virtually outla,v 1n·
.
1
proVISton that the Board might not nullify existing labor con·
dusttial unionism, It ,11'3s,of course, designed to kill d e
tracts. Actually, these three amendments ,vere enough to
C.I.O. But ,vou\d it have helped the A. F. of L,? The f~cts
destroy the Wagner Act and ,vere al l the A. F. of L. moguls
were that after the inception of the NLRB, the Fcderauon
ever really wanted. Other hamstringing Walsh amendroents,
including a provision for immediate court review, ,vere
1
'
 1,Anoit FRONT
TliE d thus to foreclose
I contracts an f
TIU! l'RESSURl•'. IIOYS le closed s 1op . I d been done in scores o
wang dy this 1a . h b ·
uskc<l for recognition of inc . Iustn:11. units 1trst0 , ansiOll•Alrca . ten contracts wh1c o v1-
( 17::1cases) than for s11ictl t't'"l(t . inorc frcq11cn1 1 cJ,O,clllPthe Board had nulhfic~ between the Federation
ic cle111a11d<.'<l broader or y .' lllHts (84 cases). F1·cquc1 \y s nn' f coll us1on d
CI O ., o11p1ngs of ,vo,·k . I It Y c,1~ werethe products o C I O contract also was cancele .
. .. . . l!self. 1 'he record clcarl , sh ' c1s t 111nhas the
istu versus horitontal nnioni ·111) , O\\cd that vertical union ::~ ycn1ployers. one .sucl;od~1~ts.case, in which the company
F i · ~ w.is n fake iss · Nntionnl Electric P . the A. F. of L. after the
t'< erauon ,v:IS ron.t-efl'"(i 1'11• F l . nc so far as thn ,.Iic I contract wit 1l
signedn closed~i~:~ the plant, ,vas the first and most famous.
l " · t:: t'tcra11 I '
l>t' led by the sheer ne-cessitic:-s of inoder~ on . iad bcrn pro-
inethods into ,t<:ceptnn4-e·ind d . belt-line produc1io11 c.1.0.hnd orga . . cndn1ent been in effect, the col-
. I , n option of in<l .. ·. . 11d lhe i10-nuU1ficat1onam d
1m1. t h,td no ohiectior1 t . d . ustt 1.1\union.
. . J O 111 IIStl'l'll 1111• • a_' \. F. o{ L. contract wo1-1ldhave stoo . . .
ob
el~.
1e<.·u011
\11\$ to the C'Olltr(llof l . ton1sn1 per sc. Its
t lC ne\\· uuionis1n by son1conc
ht$1\C t . w·1r Green and Lewis G. Hines,
On August 18, 1937, l iam b d Ind11stry acting
. S etary of La or an ,
• •As• for th e ch :n1.,"'eso often p:n'l-otro by the ,\ F
lnttr Pennsylvania ecr < • dl · esident
.... I ' F oEL and F. D. Coster, late sw1n ing pr
its ~ - \ ,:\[. :lilies th;lt the ~LRB f. . • . . of L. and ,vr t 1et, . • ·• ' . • k for the com-
- • ,nored the Cl Q · of1lcKesson&:Robbins, and Frederic W1gers y,
~unow on the fu~ '
of th e ~,u...., Early in ti·· , • •· 1t ,,'!Is . " I tipulnted that all
&.~ni adopted the SO<"alledGlobt" d . _. • ic g:tu1e tht' pany.signed a ""•ork1ng agreement. t s
~-- "lied octrn1c: tl1at cr:ifts had '1-IcResson &:Robbins branches ,vo1,1\dbe placed under local
to vc «-ru
.L- as the prope u · . . units in nil
r co ecu,-e b.'ll"§l1111ng A. F. of L. contracts providing Eor a ,vork ,veek of not less
c:a.~ "ucre the, h:.t,-e311, historicd claim to ••
subst:\nti:tl be . . : recogn1uon. run· than forty-five houn; (one hour above the ma.ximuro per-
St" . mem rsh1p _and :u1, inclination to be clas:-ified niitted bv l:n\'), that there ,vould be no strikes or locko~ts
p.u-atel, •• \s l ~ult, ,n the si.,t,· c:ises "·here there hnd
during the liEe of the agreement, and tbat the Federauon
httli a sub.st:1ntial di~'Tttment bet\\·t-en the C.I.O. !llld t11e
would do "all ·within its p0,ver to prevent imposition up0n
•.\.. F. of L o,-er the proper unit. the Bo.,rd has found for
or interEeren~ "-ith the business of the employer by any
the F«ltt.ltion in t\\-enty-nine ca.~ and for the C.1.0. in
other labor bodv not affiliated "-ith the Federation." A L.ibor
t1\~ty--thrtt. In onl\" elev-en cases h:td the Board tun1t'd
Bo.ltd e~-lmincr in Senttlc snbseql1ently folmd that this
do"-n :lppliotion.s for craft unit cl..i..~fic:ttions..In :ill ol
agrcen,cnt had been rep~ntcd to l\lc:Kesson & Robbins em-
~ ~re 1\-eregood ttl..~ the most COm.nlOll beit\~ that :1 plo,"ttS Ma c:losttl shop oonttact and that the,· bad beell told
Ul.')~n· of o:aft unirs in,'ol,'1!d ""-need to join nn indnstri.11 to join the ..\. F. of L unio11 or ~t out. If that "-asn 't a , t"llo"·
union. d~ oontract_, it ,,'3S out of the ~,ue litttr. 1·et the pro}>O-~
The ~cut ~in.,'t in\"31.id:ltionl~f n~nrracts \\':.IS tht"
arn.endment "'011\d n1.'\l;.eit inviolate.
all)St ,-icious of toose ~ by the ..\.. F. of L Ill' pur~,~ ln the 6.nt o~ of contnet u11lli6c-.2ti.onin the Labor
1ll':.ISto ptttent the 6o.i:rdfrom ups,ecting •.\. F. of L rontr.t,"t$ lk\.~td's ttrotd. the ..\.. F. of L "'3S the coiuplainant ~'r.\in~t
in~~~ a::::.plo~~ ~lped ~ Federation 011,,":lni.~ the.it the Clinton Cotton ~fills.. The Fede~tion quitt propcrh de-
wad:ers to had Oli C.I.0. union.. Feder.ition leaders "-;inted m:a.nded th:lt a contrac:t bd\\'ttU the nulls :ind. ;i ronlp3ll'
ru t21:e Jrl:1,ct>.:;t: ofrheix pcda1Ni $0.tm ._-1thX _.\._\l . 01~
 TJ11r l'I eel Columbian Enameling and Sands Manu-
•
1111ionI • <essuRe
. Jc cance led to aovs 111the ans t '
• f coropany decisions, handed down in February,
Aflcr
. . . Lhc w ay f or an A
that ' t I•e Fed clear
11111oni s m
· on its . Cration went 1n. fo . F. of L· cont I ractu~~ court roade the roost of its opp.ortunity not only to
adopted em I own hook. But h r. a kind of ract. ,939, the Wagner Act but also to point out to manufac-
contract~ wi~ho~~rsdagain would hav:d I~ amcndm;~~~any weaken ho,v they could use 1t . as a weapon against. . d
organize
fr eeze out the A inF ependent unions'~us ed into closed sleen 1
b In outlawing the sit-down
turers . .
strike, the Court opened the
th · · • of L OJ and a · op
. em in the Fed er . . ' . d-time trade .gain sought t Jaayor- · ·
for labor-baiung emp l ayers to escape t h e1r. o bl'1gat1ons
.
inevitable and at1on s rank and fil u~1onists, man o
leaders . resented the course e, taken
realizedb that th.is y,vas
of :oder the law by goading strikers into commission of unlaw·
fill acts, as Girdler tried to do in the Little Steel strike. In
Wagner Act ame d y Federation passingon the adequacy of the Labor Board's procedure, the
of C ongress for several n ments got nowhere at the court deprived this government agency of the po,ver Con-
ll?me of the steam reasons. Pr esident 1939 session
11am I~ciserson out of the campaign b Roo~ev:lt took
ciJiator t h , a moderate with lo y a_Ppo1nting WiJ.
l gressintended to give it to determine the facts in any given
case,The Supreme Court, in effect, invited the lower Federal
, o t e Labo B ng exper1en 1 courts to reverse the Labor Board when they wanted to by
tion officials made r oard in Donald Smith's te as a con-
disputing its findings of facts. This same device was used by
CommitLce; and o~ poor ~howing before the ~ea~=;Federa-
the Supreme Court years before to devitalize the Federal
bctwccn the Fedla d:nL;:;• c!::oduced evidence of :,~:::
Trade Commission.
in g the amendments. Neverthel ployer_ organizations in draft-
out of the Wagn er Act w·11 ess, legislat ion to cut the heart 3
th C 940 session . 1 come up · in
• some form at
again Shortly after President Roosevelt's re-election, the Federa-
1
Labor also ran into le al d. . tion started to ease itself out of the New Deal fold and to co-
Unitccl States Suprem Cg iffi~ult1es early in 1939. The operate ,vith industry against the C .1.0. and the President.
. . e ourt, which u fl th
1nvnr1nbly upheld th N . ' n 1 en, had almost The McKesson & Robbins agreement was only one of many
. e at1onal Labor R 1 •
interpretations of th W e at1ons Board in its e~ples. The Federation co-operated with McKesson 8cRob·
Chief Justi ce Charl:s E:~erHAct, suddenly changed over. 1 bins, ,vhich opposed the chain stores, but then as ,vil].ingly
shown that he · . ughes, who has frequently ~ve support to the chains in their fight against the Patman
. re~t to cl1anges in
not 1ndi:ffe
helped to• beat 1sthe . public opinion,
bill to tax them out of existence. The Great Atlantic and
. PreSldent s Court reorganization bill by
Pacific Tea stores, the largest chain in the country, launched
th onstrat1ng in d eosions
dem · · favorable to the Labor Board
an expensive publicity campaign in the summer of 1938 to
at the Court ,vas essentially liberal. But with the threat of head off the tax bill. It retained Carl Byoir, recruited Mrs.
. ourt reorganizat' ion removed and the 1938 election reveal-
C Virginia Jenck.es, former Congresswoman from Indiana, and
in g a gro~ nd swell of reaction , Hughes reverted to his former bought space in some 1300 ne,vspapers in thirty-nine states
conservausm • tak 1·n g "1\11
"th h.1m enough of his colleaCTues 0 to
to put over its propaganda,
st ap do,vn the Labor Board.
 OR FRONT

i?86
-raE LAB . c systems" and sup-
. tic chain stor
TRE PRESSURE BOYS
"l.1lonopo 1is
It sought co-operation not only from cons111ners• ,io11
co11delll;:~an bill- F of L. by r etainin g Ches·
ers. ,\·ho "·ere told that the chain-store tax "'ould ra:d ;nn . partingthe_r played up to the AW~shington lobbying firn1
but from labor as "·ell. The A F f L . . P ices,
fi h . . . o . iushed into th corl ~yo1 and Associates, a tobacco companies and
g t. exactmg as the price for its co-operation a p . . e
•.\.. & P. employees could be organized by A F f1Lm1se
0
_that ,er \\fr1ghtdlespublicity for sevberalNewsService. Byoir also
As 0 · t1n1ons
•ch11an • l La or h
a resuJ t, the Food and Field Reporter · trad
·
. . wl11 I e Internationa
bJ"shest 1 . f consumer
leagues throug out
f th ch . . , e magazine
pu _1 d the organizauon o end field representa -
o e am-store industry'. ~tated in a late 1938 issue: "So
far as kno,\rn, all the organ1zmg [of chain-store empl . insugate H is technique here was to s en excited about
b · oyees] 1s thecountry. unities to get wom . .
e1ng do~e by A. F. of L. unions. This has led to reports of . ·nto various comm £ ...... their organ1zauons.
an unofliaal agreement benveen leadin g food chains and the uvesi d help them o,,u "d d
the chain-store tax anof course, that they were being -gu1· ens
A. !· of L. whereby the former will permit the latter to or- ld
They were not to ,. • men Some o £ these organ1zat10
gan1zt> store employees witho?t opposition. In return the by chain-store publ1c1ty . paying dues for the
A. F. of L . would use its influence with its affiliated state orti ng, the women
became self -supp h · stores.
organizations to help the chains fight the tax and other re- - · b for the c am • f
privilege of doin g a JO . the long campaign or
strictive legislation which might have the effect of raising The Federation's performance_ in rticularly repre-
prices." h l aislat1on was pa .
Federal wage and our eo- th" b"ll 1
was held up in
Editorially, the same magazine said: "It might be said two years 1s
hensible. For mo re th an . J hn O 'Connor
that the chain is basing its fight on three broad fronts . It is the House R ules Committee
· b Chairman
Y
°
• . d that he favored
malting it easier for organized labor to ,vork with it and has . . O 'C or always 1ns1ste
and his associates . on~ . This may have been
made heavy concessions to that movement. It is, in a meas- it but could not control his committee . . es be was
ure, subsidizing women's organizations in the country which ,. d th t on other 1ssu
true, but it should be note a . t e maJ·ority. The
are interested in studying the growth of taxation on the foods . . th ·d O f the comDllt e
almost 1nvar1ably on e si e C mittee to ob-
which they use. It bas, for some time past, aimed at agri- 1
A. F. of L . made it p ossible for the ~u e~thomh CI O in an
- ·om wi t e - • •
culture though in this direction official U. S. reports, on the struct the legislation by re fu smg to J d nly after
whole, have done a good deal of harm."
T o carry out labor's end of the agreement, Louis P. Mar-
1 attempt to dislodge it. The bill finally was ~asse byoa major-
. had t,vice been peuuone
it .. d ou t of the committee

ciante, president of the New Jersey State Federation of ity of H ouse members. . C - favored wage
d th Execuuve ouno 1
Labor, proposed the formation of a National Council of Ostensibly Green an e h laced every pos-
. . b they nevert e 1ess p .
Labor Tax Committees in twenty-seven states. C.I.O . unions, and hour leg1slat1on, ut . d the Senate m
. obstacle 1n
s1ble . its
. ,vay. Jus t before 1t passe. them to vote
on the other han'd, showed a disposition to support the chain- . to all members urgmg .
19<>7Green sent a 1etter fli - ntly cirasoc
store tax. The United Rubber Workers, at its 1938 conven- " ' d · was not su oe
against the bill on the groun it b ·11 but not the bill ,vhich
tion in Trenton, Ne,v Jersey, for example, adopted a resolu- in its provisions. Green wanted a 1

1
'
 -rl:lZ LABOR FRONT 289
'/ H Jr. l'kE.,~1• • order to take surpluses off th e ma rket , keep
the s,~,,a1..1::. ,J<J< H<1v~
w.., 111'' {..,.J<>i rv •~ g and sustain prices. Later David Dubin sky
11eltlPJoyed,
l I u: l l ' JU~
. ' (,ru ..'tn
.
x ,k gt ht.<, adr, p t. It got th rr,ugh .
t.< tbt !l1ills runo1n
11
national Ladies Garment Workers Union . ne -
,~t1cm of pr ,,va1on, for c: t.arne p <Aition, dcrr,a "? yway. 1n
o we Jnter -... ;Jar purchase for 1..: • d ustry. H 0s1ery
lus 1n . wor kers
an d tJ1e Soutl1 1r . ,. wage di ffere n tials l . nd1ng clirnj. f
• nc:w • d'
1 <: .... JCtwee:ntf gotiatedka s1.....
the boycott on silk stockings,. .
started by l1bera 1
rr.i.e.uur c w uld no t be , a4 id eve ryo n e else ti tc North
allyi n g iL~Jt . L ~_bC<l because the S ' tat such a al50 ~rotie ns trying to protest the Japanese invasion of
w 1ti 1 tJ1e R . t li outher bl
D em ocraLS w uJd cpu , can s an d react1·0 n <X, by organiza.0th the argument that the campaign would throw
, command . . . n a ry N h
The real reaso £ a ma1ority. Ort crn China, 1v1
n or Gree n ' • . 'Ile.workers out of employment.
otl 1er c1a ft union m s opposition was that h s1 •
In roost cases of union co-operation W1
·th t b e emp loyer,
wages and hours a doguls !eared that Federal re c a~d the both parties immediately affected have gained at the expense
nec essary for work ne wor_k1_ngconditions might !uklau?n of of the consumer. Consumer organizations are the weakest of
f rs to J01n u . a e it un
or the unskilled might in . th en1ons lo and that higher w ages. all the Washington lobbies. In the NRA days General John-
wage rates for skilled unionists J Ing run_ bring down the son went through the motions of listening to consumer repre-
on the other hand, recognized tha~ 1n Lewis and the C.I.O., sentatives, but never paid much attention to them. His
necessary because the . wage-hour legislation "= contention ,vas that there was no such thing as a consumer;
. unions had n d ....s
at tl1e1r height, before the I ot ~ne their job. Even that every consumer was an employer or a worker, and his
and the C I O had 1 937 -38 recession, ilie A. F of L most vital interest ,vas served by protecting his sources of
enrolled. · · · on Y a small fr action · of American workers· ·
income as a producer rather than his expenditures as a
The C. I .O. as well as the A F consumer.
through Congress bills h' h. . of L . has fTequently lobbied In spite of their rivalry, the A. F. of L . and the CJ.O.
w ic the affected · d ·
selves never could h in ustr1es them- have necessarily stood together in their advocacy of some
1937 . ave passed. The Bituminous Coal Act of I
kinds of legislation . T hey have both supported public works
' grantmg a government commission broad price-fixing
Po wers,
port of Jnever
oh could .h ave b e~n pa~sed without
. the active sup- f appropriations. The building trades in the A. F. of L. and
steel workers in the C.J.O. have been to a large extent de-
. n L. Lewis and his Uruted Mine Workers. Lewis's
pendent on government construction for their jobs. Succes-
reputat.J.on
. as a l ab or 1ea d er w1ili
. influence
. in the Adminis-
sive app ropriations for Secretary of Interior Ickes' Public
tration
. and a wa Y o f tak'1ng care of the industries
. he organ-
Works Administratio n program were therefore accorded
ued, helped him get contracts out of United States Steel
labor's united support . P owerful business lobbies, notably the
Corporation and large units of the automobile industry. Associated General Contractors and the American Iron and
. When ~e textile industry was badly depressed in 1938, Steel Institute, also have backed them. Ed Harding, the con·
Sidney Hil lman, president of the Amalgamated Clothing tractors' lobbyist, is one of the most persistent in Washing·
Workers of America, persuaded tJJe government to buy ton. Even ,vhen Girdler ,vas president of the Institute and
$ i 5,ooo,ooo worth of surplus clothing for distribution to the
 N'• \H~ l'i-l-''s1'\' ,
~'I- l\,\ \ s
,: ,~lc.' o\U\t'1 o\tl ol' tlu.• \VJ.l,\ .,llot111cnts it received
nd • a. 1-lc
f '-1' 11ll,I\.Lt>•~ I likev,1isc l.'Ollcctcd $1,860 out of the
lln\_\l' ' ,'>l \ ' \\"-Al\\t'<' I':\ \\ ('\\' ~t\\\\lt i l , . ' 1 193
~
r.,tt,1n "-~ ,t,,in~, "1,'"'t t't ,,,,1l l I \-:l · t,.,,
. t'\.',,nn1n, · tl 1 tt · l!l~5• • .,tlotted
a 'by the P\ VA for construction of (our school-
The ,r ,
~\\'('l1l\H~l\l sr-:·ndil ' l
h.
\ X' \\l\d. th (' S\'<'I\ • • O\'~;i n .
\_, l \l'<)U,l(h the P\\ " ·\
'd • , •'
c:sto pron tot
('
111
1uo11cY . • uthougl1 he voted ag:u11st
rf'cdings
1 never hesitated
• almost all Ne"' Deal meas-
to take advantage of their pro •
•
I (1\ ,-..S l-1"'-'l'(''•
~~ ~\ .... 11\1 1\ l 't . • 11ouses. .
~
l
>-.Ul-S. a though its a) . . ia tton und er . ~•a1 . •
ing, "·ere not so popt plropr ~at1ons ord inaii l)• <Mtl{Iab1 ry Ii op- ~jsionsoncethey had been passed. At various umes he secured
u ar l\t1th th b ' ~-- a orb
governJJlentloans on a ~o,vn house a~d. a herd of cattle and
. n t11at most of th e money , e 1g busin
reaso . ess lead crs
. Corack-
tl
gotthe government to dig a yacht basm 1n front of his Havre
" ... 1·lt tl e mat .al \13.S paid out iu
pr o1ects requi=d . \\'age \ ,e
contractors. In 1909 tl A er1 and \\·ere not carr· ds. VP.<\ de Grace house-handy for his mother-in-la,v's yacht.
h . . J te . F. of L al ie out b
opwg to divert part f th e rel· f. so turned a,,.,; ;s=nst th y puring the 1936 campaign even Secretary of Commerce
0
"'orks
Th but fail'mg to do so. 1e money into
· em,
heavy public Daniel C. Roper , usually on Tydings' side of the p0litical
fence, was forced to confirm the charge that the Maryland
ere have been p· ki
and WPA programs A1cthngs for lobbyists in both th P Senator bad personally lobbied him to prevent cancellation
N . . r ur F M 11 e WA
at1onal Committeeman from .N bu en, former Democratic of a contract under which the Boston Iron and Metal Com·
O
ee of -w 41:
5,000 for getting loans e raska ' nee d emanded a pany, a Baltimore firm, had bought discarded merchant
f 17
$18,400,000
• for the Lou P R'1ver and andC grants amounting to marine vessels for scrap at $1.51 per gross ton, when the
1
servat1on Authorities in Nebra o umbus Water Con- domestic price at the time was $13.75. Roper had abrogated
the Mullen fee to a smal l fr s~a. Secretary Ickes cut do,vn 1 the contract after delivery of thirty-four ships. Tydings, on
ced'tng that the Nebraska I action of th e ask1ng · price con- behalf of the firm, demanded delivery of the rest. A com·
for purely legal services. b:;!er_ "'.as entitled to som:thing ~romise was finally negotiated under which the company got
coming for lobbying. Ickes f ;7s1st1ng t~1at he had nothing forty more ships at its own price, but waived its claim to the
ncction ,\tith the Geo . . f. o o,ved th1s precedent in con-
,. 1g1a ee demanded b "Cl 11. " other [orty -six.
"_Senator Tydings came repeatedly to my desk during the
<"11.C~
rcarn1n.g. once cnncclcd •11 p1•OJcCt •• •
at R1vcrsicl, YC lif P .Robert.
I
th.it the city
I
d . · c, ,a or rnn, after
f<lrliCcurina the hl'\t\ .,,'~ paid Glen E. Ivlill er a $ 1,000 fee
, ~ . ·. • 10 ~rant . 14'c• n11no1u\reclat the s:nnc
' sp1· 1ng of 1934 and took the position thnt I had no right to
a~rogatc th e contract.'' Roper said. 'fydings' explanation of
flt\\<' th:tt 1'1illc'
l \\t,lS ()Ct'SOl\ ll no
\\ '.11 nt'tt othc1• citi<'. .. .
., •
. n_gt,1u1 ,v,th the PvVA nnd
1 lns co1\duct ,vas th,\t he \vantcd the ,vork for Mnryland labor.
ll O\\ICVCl\ 1nost of the ships nctn;\lly ,verc junked at Chester,
·1·1 I s .1~.11n~t ft't;\llllllf\ ' hint . l'cnns ylvania, .lnd tr:,,·yland 1,,bor benefited but slightly.
:,,r li1111
1<' fee'~
<'('ivt-<l • of Sr111to1
: · -r. · ~ 0 r l\ fat'ylanrl lllsohns 1·c •
• ' 1-t11 ' \Vlth the division of labor cutting do,l'n the effectiveness
~t't'l:ut ,,.,,·
' 11\ n,111H'<'t101\ '"hh hoth \ Vl,,,\ nnd P\V·\ . of o,-g,u,i,cd ,vo,·kcrs ns a liht•,•;t\iting influence on legisl.t·
t ;\\lls . The \ Vl'
" ,\ n<,t t,nt, ht11lt . \\'h.1t :Hno11ntsto a private , pt o lion, l'rt' sidc11tRo1.'l.,cvcltintt'\Tcned in the spring of 1939in
hut hi~
t ,-$ "~ . •••.ano
, to 'T\ i\ II •~$ · ,,-i.n't.'1\t,tl
• ,\hcrdt•t•u cstatt", h.111nony., \'hilc his o,ovc ,1ins
111\,\htn·ti, ·c c:rto1·tto 1-cstt>l-C
•. t'IJtll\l't \ Rohc\'t .\r·thl'\ \ <")ll<'< 't<'ll a ft-,• of one tl('t ' •
~ncr1,lly 11\tCrtn'<'tcd:,s p;\\·t t'f his business :ippcasc1ncntpro-
u,
'"''\t ,,,111,n•ti \,n ,~••it I' t t\<' •l'-'\l, ,\\ '\'ht'\ ' 8~t $11,(lOO in f~'t's l

1
. ii it
11111 111 1 \ \;\ lo
111 t II Il l I 111, I II
h1 •ll , .. _,, 11,~
\ It \ \llll111 t I I I
1111\\1 , 11 I
I , ,1 \ 111111 '"' I~ I 111111 ll\1
I\\ 11111,11, ' I I 1111111111 111 111111,,II\
. ,11,,,, \\ •11111 11• 1
l • ll 1tlh 1 11l 1h , 11 .11111111i hh 1 , li111111111 11111
\1,p11111 ''1•h1 • 111 p1l111111 lh1
1,)1\\\\\1 ' \\II ''' " \Ill 11\ l.1h111 II j.\ll \ 1•1111111 •111 \ ""ln\111
1111
' 1'" 1h • I ' ' • !,11 \
11,,11~ 111,\lill ,111\ ,1111,
, \llr1 11111•
' 111\,, 111 lih1 •1,1\1111
11 "
1
'\ "1'\ld l\ \' I\J' ,\11\ll\\\ .1~h111
~11111
h1l1l11
· I \ h•w 14
1111111
th,• l' 1•11p l,,'.l\ ~
h •lll~1

b ,1::','~h
,,~
~, 1'11 I\ I J ' 1 111111
11,, 1\ I\.Hln c, l ,111
• \\ ' 1 111
~1 i'11:;;',
:\\Ct' c . . .ohhv. i\ N1\tHtu vV1'1\ ,vo1kl'l 1101111h1· Sru n11I t :0111,11t·s~i111i.1I
n,~
,\ a l'<'sca,,:h c \ u
,\le
. • o,
~\.'I\ ll '
ll ,1bc1t ~l ·111
. ,11~-111i,,1
{
11icl of t; <-'u
114it1 vculnl l'tl i111.
o thl' Un ited Stt1lc~ Cap1111l 11
a ppca ,in g beL-
o. c·n lcg 1sla1i, c d1·1lt' • La 1r11ncuc t
~ c s1onal L'01n1u,itt ces to .) • las bcc11
. . i e ,onor • .· • tng •l.g'Cnc , I o Lew clnys be(o1c a rellct ll JIP l'll()I ialiou hill wa~due l01 10 11
a1g u 111c11~ fo1· an d ag1 i1 I sklcration by th e l lo11se in the sprin~ ol 19~!)• I le was
scl 1ola r ly and con ,,·ell
• tst
,. d pt'\'.lposcdlegislat 1.on :tl'e
t years.
. llis' escorted by L\VOu1e1t1bcrs of the \Vo1kcrs Alli.1nrc, 'f ed
over looke d Th . s1 cre d, bu t t h ey ar . u1variabll' O:unun and Clem All en. Th ey asked a page to invite Cou•
Th omas
.
and
th aSt is_tl~e fate, too, of state m: alsobi nvariably1
e oc1al1st part y Tl C nts Y Norma, l gressman Eu gene Cox of the Second Georgia DistricLinto the
· h ead s in \.Vash · · 1e omm un1sts
rai se tl 1e 1r · occasional! corridor ,vhere he could lislen to an appeal from his con·
ca u th in gton to tl d . Y sLituent £or support of the relief approp riation reco1n mcndcd
ses ey esp o u se , althou ah fo . le eu'lm ent of the
front line , they have usu a ll t> ' llo'_V1ng their recent united
1 by President Roosevelt. This procedure being regular and
liberals. y st ood wi th the nonrevolutionary customary, Judge Cox followed the page to the corridor,
where the three men ,vaited.
Finding his petitioner a Negro, and a reliefer in the bar•
gain, the gentleman from Georgia bristled ,vith righteous in·
dignation. He delivered an impromptu speech, embellished
1 ,vith suitable epithets, to the effect that the place for a field
hand is in a field, and ,vound up by slapping one of the
I Alliance delegates in the Face. The incident received slight
notice in the press. '\\lhat con1ment appeared excused the
C1>ng1·cssnlan's uneonu-olled anger on the ground that ~s
attempt lO "intiinidate" hiln ",as clearly a case of lobbying
its ,.,,n-st. · Ch bel'.S
1 :ll
,\l><1nt•' "•eek lat<'I sonic 1100 n1cn1bersof Ohio :un
,,f ( :,,1n111<'1-.."t" ,lcsC<'t1'1~lnp(lll '\\'a~hington, !he, s~1·J.~~03
. . \ , ~ ,( th<' c.1pit<)l ~u11nnon1ng their St'
\ I11,\\1~ 1
\I \ lIC t'\)l t l<' • t ll$S
 t, ,,, l\ ll, 1 ~' ~l'' , , ' 1\1,llt\,,
. 1' ,,,11t.•1,•n,, ,,
1
'I,~, · I . \,tn,•1 • ,,,.., • \ 1 h,il ii ~t'r11H•1l dt·i.lint•d 10 be ,vrillt'H dcn1•n to a fragineni of
"' \ \, l th'll,. I I · l\1.1\tl
,,;.- " ' .u t lt.• \' '\~I\\ ' \ •\ \ I\ \ \h\\, \\\¢\Ill • ' \\\\ ' ('\ :,, fll\ntt·1 st•lr. Sin1il.1r p1t·ss1ne fo1 lt,-gislation to lift the
' '';, .,...,, ' • ... ' \ I \\ ,\;, h\ b,• ,\\\\('\\1\ "' l I( I, t\f l \111
\istribult'(l prolits tax aHd ce1t,tin other levies on corpo-
"'I',11. ,\\ (' ~'1 ,- ,,, ..n\t..l
~,. l • • ' ,,t \\\\(' ,,t lht"tl\ , 1
•
H
l'ltl\11ht"'' 1101
1,lle business proved so irresistible that the President, con-
' :'1,11~l 1 'h;, \1\( \ \1\t l . i, t sl,tpp~,l , ,
1 , h , .u1,,n bv ti · -~('t 1
' ~ ..11th,
t ' '"-'lll ,..l
,' the' l'l ~ h 'l . \¢ 1\\,1~ k,bb, f-.....•
' ,\\ "'i lt f, 1 ,,,t\\
r,,)nted ,vith a rt'volt in the ranks of his 0,1111n1ore conserva-
~ ll\,n , 'l-t,1ti,,,, ,,f hus in ' " ,,r t ti;' ntust P.'ltt th e ;1dvisers. finally capitulated to it.
,, .. ' b' ~ '\,e1 :\nte-nt. t:~ une1'-'St in th . L\S time for the I g~o election approached, Roosevelt and
e n~q
'"'
e- .!''\., ~. intent
,
,,-lS
' ' .SU1.~~f,1l th.tt th
bis liberal allies il'ere definitely on the defensive. The 1938
election. ,vith Republicans gaining eighty seats in the House
.l . ~ ::.uh.~ t\ent 1' held .:-imi l:u- ' e C'.il:lnl.berof
and eight in the Senate, had indicated a righn1•ard 5'\ing in
,1t~~r-,· :ite- de'~tion.." but fin:tllv it banquers for se,·erai
public opinion. to be sure, but that alone did not explain
'' he,. :it i,s annu:il co11vention : i ov~rshot the mark.
den.anded outricllt ....... ,._.,1 f thln ate sprmg. the Chamber the disp0sition of Congress to go back on reforms ,vhich polls
..:- • '-_r- ..... o e '''1<:,<>e-h of public opinion still indicated ,vere popular v.rith a major-
Ton p~ denounced ·is l d our la"·• e,·e.n the
..._- • l ea ers for reaction . . . ity of the people. Lobbyists and propagandists for the prop-
-, either the unemplo, ·ecl _an stupidity.
th O . organuer "·ho irot sla ped erty interests, renelling their efforts after the first Roosevelt
~ hio businessmen ,,·ho did not "" . "" p nor reversal at the p0lls, provided the rest of the explanation for
important. Both . ere m themselYes very
sla • prov1decl dog-bites-man stories. Had Cox the reaction.
pped an unponunate s,veatshop o,,-ner from hi tha Behind the move for revision of the 'iVagner Act, for ex-
uld h:t s state, c

="':' ,-e been ne,,~ Had an Ohio Senator protested coer-

bv a mob of Ohio husinessmen, that, too, ,\·ou1d ha,e
unusual eno¾ah to desen-e headliof"S. Even so, accounts
ample, lay the combined efforts of the Chamber of Com•
merce, the National Association of 1fanufacturers, the Ameri-
can Federation of Labor, the ne,vspapers and magazines and
of the one-man lobby from Georgia and the 200-man 1.obby other media through v.•hichconservative propaganda is con-
from Ohio, taken together, tell a good deal about what goes stantly disseminated. Their system, after years of experimen-
tation and persistent effort, is as complex as a Rube Goldberg
on daily in "\\'ashington.
device for putting out the cat. Tom Girdler tells the N.A.}f.
1\.ith the labor lobby split and the A. F. of L. hall of it
what should be done, the N.A.M. passes it along to the big
already gone over to reaction, the voice of the underdog shot in community X, ,vho, in turn, smokes up the superin-
in 1\'ashinzton is little more than a feeble ,vhine. Only tendent of public schools, the banker and the ne,vspaper pub-
the efforts of a persistent group of liberals and their implied lisher at luncheon in the cl~b and th~y spread the gos~
threat of a filibuster saved the "\\Tagner Act from mutilation ,vhile at their daily taSks, It 1s drunk m by the substantial
st
at the 1939 session. The wage-hour Ia,v, probably the m~ vho are predisposed to resent change in the first place
peop 1
popular piece of NC'\v Deal legislation, was first stalled lJl d e' believe in the 1n · fall'b'li
1 1 ty o f th e local b.1g;\Tlg,
· to
committee for two years and then, when .finally passed, s~b- anh to ition they aspire, in the second. The well-fed upper-
th rty lobbies w ose pos
jected to such pressure for change from e prope
 "I

296
THE PRESS PRESSURE FROM THE TOP
2 97
bracketeer h as b een l.JRE Bovs
. successful in putting
patriotism must mclud . 0 ce to the Senate, where there is a chance for nc1vspaper
well as to the e 1oyalty to th ver the id v:licity and where every member, at least in his own mind,
third rocks and rills
of the people b .
e slums and ea that
. He resents th· dumps a ~u a potential presidential candidate. Assuran ce of re-election.
he resents still more the1ng ill-fed ' ill-h ousedis talk d .about one.s is therefore the price the average Congressman demands for
a out it. He take . e experiinental effo an ill-clad a11d his services. This is a price which, under ordinary circum·
bAn s it out th rts to d stances, only the owning class can pay. It is paid in campaign
~
d since he an at e moment on o somethin
the balance f . those over whom h Roosevelt. g contributions and in even more valuable exercise of owner
. 0 pol1acal po . e has infl
is Congressm wer in most el . . uence hold influence on the electorate.
h an someon h ecuons h
who conforms to hi e "' o shares his o,v ' : ~electsas Thus constant sniping at the Wagner Act by the big and
,vith but fe s standards of America . n op1n1onsand little men of industry, spurious as most of it was, undoubtedly
w excepti . n1sm. c
served well th ons, are middle-class ongressmen, had turned public opinion against the law by 1939. The same
I e owners of th . men ,vho h cannot be said for the wage-hour law. This appeared to be as
a~ers. Occasionally the s . e1~ communities, usuall ave
popular as ,vhen it was passed. Yet Congress seriously con·
latmSg b~t more often his ::;~:~ ~1mself takes a fling at l~gi:~
sidered amendments ,vbich would take 1,500,000 workers
ometimes men of v· . piece goes to Washington
i 1s1on and ind d . out from under its protection. Having failed to convince the
gnore pressure from th e1r . top c epen. ence are able t o
public in this case, property interests used the direct ap-
enator George N . . onstituents. Men rk
S. h 01r1s of Nebrask 1 ·e proach. The ne,vspapers, through their lobbyist, Elisha Han-
wit out compromising with h a manage to hold on son, went to work first. Then canners' and food processors'
the exceptions rather tha tht e Rotary clubs . But they are
ril n e rule The . lobbies in Washington formed an alliance with the £arm
na Y finds out after h" fi · young idealist ordi- organizations to demand exemption of every 1vorker even re-
ball." He becomes is :st term that it is easier to "play
. a conspirator in th . motely connected ,vith the handling of farm products any·
ing the low-income . . e great svnndle, assur-
,vhere bet,veen field and consumer's kitchen.
interests, but behind 7:1;1ty tha~ he is furthering its best Led by Ivan G. McDaniel, Los Angeles Ja,vyer, ,vho de-
. d" . ack selling out to the big men in
scribed himself as counsel to the Ag1·iculture Producers
h 1s 1str1ct. 1 Labor Committee, the lobby sho,ved such po,ver that it ap-
Hde does n?t, of course, sell out for cash. That is a crudity
peared only a matter of tin1e before it ,vould have to be
se l om pracuced at this stage 1n • the country's moral develop- given its way. Actually, the committee is merely the lobbying
ment. We are beyond all that. What most members of Con-
gress want more than anything else in the world is to hold
, [ront Eor the Associated Far1ners. At least four of the five
committee members listed on its stationery are active in the
on to their $10,000-a-year jobs indefinitely. If they can live Associated Fan:ners, including W. E. Spencer, one of the
lo~g enough, the unwritten rules of precedence in the House most vocal of the outfit. l\fcDaniel not only organized proc•
,vill land them eventually in committee chairmanships and essors and farmers for an assault on the ,vage-hour Ia1v-a
t~ey are assured of a footnote in some particularly exhaustive project in ,.,bich he \Vas greatly assisted by Congressman
history. They may even be able, ,vith enough breaks, to ad· l
j

1
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11 I ,IS '1!'11,')lj
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ti l
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'
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l'l
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I •
I
·d. 11111 • 011,·1· 1h,11,11\a R1,1111H,1thc·1 N11v1•clfro1n lh<' 1'1niu of his
lahor co11hlht• Nflt'nt tiy a R' ;111dso11. It u p1 ohahly tt lit' IQday
· l I n 111,·:1111111•h111 11)I 1
l 111• 11\tldifit'tl f,j,
I11•,. 111·1 l ' t1'r.t1tM' h1• ,v.,s inolli orv1•1y n101l(•1.1a• rn1 t 11nes. It is 110111uc or h111-1c invested fo1
' " • 1 ttt <' 1111011 I •
':1111111g lh.11 ~o,n,·,1r
o111siJe.,0111,·,·s )f . . • his tunes un<l,•r JH'CSt'lll co11di1ions. They not only perpc111a1c
. l llltOlllt' \l ' t'l't' lllltlt'l i11,,-.~ti)\aliu11.
tht•n1s1·lvcs.They p,1·0,11.
"This is bt•c:1use they nrc no,11so tn·gt:. A riotous lh ·ing
heir to one of our lnrgcr fortunes ,vonld exhnust himself
be(ol'e he could exhaust the inco1ue nlone of the estate.
rl,c \~• for. I h('£ t:l'\. hi 11hr 0 l 'S'I lt to the floor of the l]ouse co11"'rd F11rther1norc, such estates are lnrgely perpernntcd in trusts.
. c....1oseth o ch"c i-·e···
"'" 11111• rh e pressure for its p:1ssn"'e repre- and every legal and economic obstacle to their dissipation is
:-entcu. e co1ub 11· 1 c"<l "or,.,, of the prop.'lg:indists "'and the cniployed. They are invested in the enterprises of d1e coun-
r-- • •' d t,,
l o.) bb \ ISL~. \\'bO n.-1-s11· ... Sec-1·etan· of Treasur, Henn· 1\Ior- tl')' "•here the income and management arc not dependent on
-~enthau. -Jr ·• to ~•11pport t h err • cause eYen thou gh President.
the judgment or industry of the heir, or are in, •ested in t.a.x-

Roo...;e, . elt en'NI co h old out for d1e undistributed profits Ie,·v. n-ee government securities.
":\fost of the large estates as at present managed , "'e find.
The nse of repeal sentiment "-ithin che •.\.drninistrati on dates
from the time that John Hanes. "·ealtbv Streeter . c:une ,,·an not only perpetuate then1seh·es but are larger as they p.'ISS

into the Tre:isUIT 35 an as.<:istant 10 :Morgentb:iu and started

 PRESSURE FR01'1 THE TOP 301

aJl-de\'en labor ,vas not solidly behind it.

'f]le Roosevelt revolution, for all the hullabaloo, has made
Jjght change in the basic color of the American scene. What
5
change it has made has brightened it. Always easily fright•
ened, chronically suffering Crom a sense of insecurity, always
on the verge of panic lest they slide a no LCh do,vn the scale,
rniddle,class people, ,vith their decisive political power,
noeked to Roo5evclt in J!)!J2,They hacl liulc reason then to
believe thal he was not "snfc." Sonic of his ca111paign spccrltcs
K<>IITl<iecl
vap;utly raclic:il, h11I 111<• of I lnov<·•·s f11111
i11cp111ess
hlinK wa~ ~o <1hvioll~1hat I h<• 1na11wit Ii 1hc s1nilr and 1111:
vol<<'Ht•r111rdpirf<·•ahh•,
1o1oldr•11
Pli•,tHl'dhy l~oo~rv<·II'~ 11pp:11r11I ~111rfnotc•clt1t•~~. a 11mjnii1y
urtht• 111lddlc•<l:tN,,joining wllh the• hy 11in1d11u· solidih<•d
111iclc•1 ~1ood hy lloctst•Vt'lt 1111n:1ti, I Ir h.ul tt1t•,111
do1,11-11111111,
while• p111ov1•1 t hr ' l' t 11th ttt Srt ttl it i,•~1\1 l, 11•q11lii11J,1
,1 111odi
ct1t11nl hcHH'Sly i11fi11,1111r , 1t11111tht•d IIH•' t'V1\11<1,l)',11clstict..
111
ll\r,,~1111•rxtn1 d111i.11r11til11y 1,11,•,1;hrlp1•1l tht• li1n111•1shy thr
:\,\:\ p111~1,1111 nf r1111,1l11'tl p11)ch11 tl1111, 11pc1l11,1hru 111111.1).\<'cl
11•,1i11111 h111M'l\1'1 I it~ p111pc\\t';\.111111111•.t 1hr ill l,uc·cl NR \ 111
hlihr \1'1,ill<''~ ,~lth Ii, ,•11,I' 111ti, p1 i.r~ i11t11p.n in~ 11',ll.\<'S
sli).\htly ,1hn,1• 1\11•,1.111,11lnnh•1t'l; h11111l.\h1 h.11t..Mllll<'ll<'l.\1<'1'
,,1·l''''\.'\"'1i1, h, 111111.1!.111111\it 1hr h11,l~<'t,f«,1i1"~p1111h.1~i11~
p,,,~t'l 11\1\\ th<' ~,,tl"II) tl11,1\1~h~11\l"\'111111'111 ~('1'l\11il\).\ 1111 l't'-
\il't ,Hl<lrnl1li<' \\,,,t.., llr h.1,l ~,,n<";1 111i11i1111111111f tht' w.1v
"''~'"'' 1hr 1~ht<'11h1-. ,,t $,'- i.,t ~,,,11"'' 11('(.'<''-';\r, h\ \.('c.'J'
1 ·'l'i1.1lh111 «lh't': l\\ l\<'1\ \ iti\('1\t lll<',lllt
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;j('("t<--l,\':i1 l"-'1'' ~,,, in ii , • ~11n,..._,. ,,, ~('t th<' ,~in ..~ l~ l- in
1,, .. ''" ll h1111.l--- t 1h<:h\'lf:' ,\,"('t\\T h11,\l\"\ "~\ th<' 'I. -- \\'h<-11
d'I("\ ,tt,\\l"-i I\ N" ,,,,,~ ~\\t th('\ l,\ ,m, . "· !lt~I '' ~m:'1
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 IHI \'l\l\\\ l
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,,, ,,, \\,,\ 1h II 111
'\\ ' \ 11\1'\\I 111,,1 II \ 1111,l,th
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,,111 11 ' '
' ,' '"'''''' , ~ t\1 .,:,,; ~11\I:ih1• , .1,1,,,1111:,::1~ w1111I,\l,,,1~ 1,,11 ,11,,1
111,•
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\\'I'll ' ., !1111•1111111('1 or
"""' \1\\, 1h \,,,\'I t,,, 1h,• \I ,, \\ 1,11, l'\\1 I ,,, ,11,h1wr1 1111111 1'1h1•~ ,H1tl th,• ,r,,-.~~11111:11•,11 uf tht• rily
\ ""''"'\\\\ \\ ,,,, ,, I t I,, \ \ •\\ 1,1',\ l ' I II ,~,• h11111,II\I I \\ '1\\I 11111111•~
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'h ' \ I II\ "111,'
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1111y 111 Nrw Y111I..111111Kc·ll)'N.,~h
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• " S' I 1\ ' I\\ ,,,,, ,:\\' I s,\'\\ ,1,111.' 11111,1,1,,•111' I ' Ill11Chh,1~11 1\1•1,\IISt' 1h1•sr 11111\ h1111•~h111l 1tlli1·1Ill11•111M'lvc•s
\,;'\, ~11,,\\. ,,t ,1, ' ' "11, \\\1\\\ ,,\ ,h,• \II ' ' ." I\\ 11111,111 ,111\11hr\~111'" ''1•1! ,\ll111i11l~1tn1ic111, llu· vn11•1s,1tr1•1111·1I 1h1·
t,.,\ \\\\\' ','\. I'\\:,' 11\,\1\1 \1\,11\,', ,,I •I \.II'-\ :\1,\11
~I\ h, ,\I\ 1111
• ~11111\'lll 1\1111h11lh w1•11• 1111111pt,1\r111:1II)'th,· p,1111111.11-11•
\ \ ~'l'-''\\l1 ' l\\ \ ,Ill\' 1,
1t'·
, I\.'
...' ' ,... l ~,, 11
,
' '" '"'"
' \ 1, "'' ,h , ' \\ ,I ,l, •111II \11\,1\11\
11'1'' II \ ~1111111~ \111111,\1h11i11i~l1;1tio11 sp1•111lill)J,
W,IS 11\0ll' r1cq111•11tly
' \\\<,l l:-.--\\l,'\i t \ >.xll\\ll,ll\,11\ ,,r,, \ . \ h\1,1111,11
, lh1• I I1I llo11:1<'11•h
11,,~\.1t,1,1\11~t th,1n fu1 hhn. 1"01th1• sit down, 1hc1c
-" ~
" • \ \lh,h\ 1 ill~ \ 1\1 '• l l 1111,111
,\\\~ \llt\\t<'ll,'<' 1 1 ' \\>, 1\.1~''" pl,,, .ttinl( .u1~w1·,-. lt \\,,,s n•vulntionary t:1ctic 11nfor-
l~"' I \'{" l \ t l'" IX'\l\ '$
1,11n1tcl)n:snttt•tl to b) so111eck•111cntsin the t~.\.0. to counter
'' ~ ''" ~1 \ll\<'-thh,l ,,f d\('
,,t th ' . l"-'l"ll,111,,\\, -

~~
,':l.\l, t\1l C$ti1•1.,~ ,\1'\'\\l,lii the \,1wlcss,1ttack on 1hc \Vugncr 1\ ct by 1hcn:ilion's cn1ploy•
I'\\ , , ''\l'~ll('
.. ,
'ik -. l'l '<'It\' ,\l\<l(' h,lppin
N,\1\(11\,\\ R<'Sl.1\1\,'C' (.~
, . ~ ,01111111tt'-'<'.
hi c,·s. U11t the opinion of the 1,ibcrt)' League's legal conunittcc
1
, ) ., , <',u-. }\,t: 1nost o{ thc~t' le~~''" 11\l"\lll\<'Sl,f t,s.~than 1hnt the l:n1• ,l':ls illeg,ll and even the massacre or strikers in
.as. k()•X'l~
•• • ,\s t l\e ptn1'1uit 'of l)e()l' ,, hi c lt• is a Iiopl' less pu1'l\11it. ' the Chicago 1Iemorial Day riots 11tercsoon (orgotu:n. The
rabbit The best thit\~ in .\ineric pi-£ts after a n1ech:1ni(':1l sit-do"•ns became grist for the renctionnry propaganda mill.
romfurt, securitv .1nd l • . • an I Ii' arc not free. Health
Thcr . e,~urc oo111ehigh. .
h e may ebe 1s no reaso 11 to b e 1.teve that · h 3
in _ ro . r.•it Roosevelt out-as
1941 Through various media of publicity, property continues to
the middle, will nofb pebrtyl • again leading the little men in
e a e to retrace f make ,vhat passes for an appeal to reason. Any proposal for
steps he has taken Th D . most o the forward
. . e emocrauc part' ' . ·a1 economic or social refonn is resisted on the ground tbat it
tt ,vas before tl1e N D al ' is essenu ly ,vhat •
e,v e as demo d b does not conform to "the American ,vay," that it conse-
elections of 8 h ' nSttate Y the primary
Ed Smith f19 S3 ' ,v en the P resident could not beat Cotton quently is "Communistic," that it would mean "regimenta-
and Walt o Geouth Carolin a, M'll 1 ar d Tydings. of Maryland tion." lf President Roosevelt happens to be the sponsor of
its li • er
al orue
O
of Geo rgia,
. Th e N e,v Deal has not sun k the reforms, "that lunatic in the White House," that "traitor
po uc fence posts belo,v tl1e frost line. The Tom Cor- to his class," that man ,vbo "hasn't even been able to control
. .
corans, Ben Cohens , H arry H op k'1nses-the able, industrious his o,vn family" is "arousing class hatred" again.
Through the ,vhole Tory argument runs the supposition
visionary young men "'bo have done the work of the Ne,;
that it is somehow un-Aroerican and unpatriotic to suggest
Deal-are not po li t1aans. · · The Democratic party will be its
that the hungry be adequately fed. Anyone ,vho is \\•orth his
old self again if Roosevelt moves back to H yde Park at the
fnd of his second term,
 PRESSURE FRO:l\f THE TOP
THE PRESSURE 'SOYS
s.1lt "ill be too prot1d to . it appear that he is mad at his audience and gives him a great
se1..,es to starve • ,.,_n
' d a 0 accept
. . relief and ' i"f h e 1sn·
. reputation for vigor and virulence-the Senator came out flat-
Freedom f
, or exan1ple
'
i
~"a,·. n1oney is
.
t, de.
not e,·erytl . footed for "free enterprise and free men." That is the case
\\'hat this freedom . ' . s more imp ortan t than fo d ung . l)lllde by property interests through its protectors in public
,,·ell ,vorth the pric:s•o:u:~r::~t is _so precious t:a; i~u:t life. Some of them are more subtle than ,· andenberg, but
Presumably it is Ereedo uon, is never entirely cl s the substance of their argument is the same. It is the same,
ne,vs m to read the ear.
papers, to listen to Stum property -controll ed too, in the propaganda of the Chamber of Commerce, the
these h
speec es happen to be ..
P speeches-uni
A . ess the makers of editorial page of the New York Times and e\·ery other de-
tll . d r UU•
. e1r e ivery happens to be Jersey Cit
mer1ca "
: ~d the place of fender of "the American ,vay."
Jury, freedom from unreas bl y- e right to trial by Tbe possessing class relies upon majority acceptance of
th • ona e searche d
e right to o,vn property. J h s an seizures and ounvorn tl1ought patterns, habits of mind hanging over from
b . ust ,v y a mor .
utJ.on of the nation's OTO . e equitable distri- the free land era and an amazing mass patience to keep con•
. "• cer1es ,vould int f .
nghts is unexplained . er ere "'•th these trol of the ,vealth of the nation. It also relies heavily on con-
fusion and disagreement over methods.
The . so-called case for the T or1es . was admirabl
.
It can be assumed that a majority agrees on the desirability
up, ,v1th the tried and true cliche . y summed
Republican manner in . s and in the most approved of better houses, more comfortable clothing and an adequate
Vandenber . , . a campaign speech by Senator Arthur food supply for everyone. But ho,v to get them? No poll, in
" g of M 1ch1gan before the people of the inevitably all probability, ,vould find a majority in agreement on any
gre~t state•: of S~uth Dakota on October 11, 1938. The program for achievement of these objectives. Presumably, the
add1ess received shght attention even in the ne,vspapers of general outline of the Ne,v Deal program, in so far as it \\'aS
substanc~-much less than it deserved from them-probably understood, was acceptable to the majority, Maine and , rer-
because 1t was made m · an out-o f· th e-way place 1n
. the course mont dissenting, in 1936.
of an obscure campaign. Said the great Senator from the Yet the Democratic Congress that slid into po,ver on the
President's coattai ls in 1936 balked at putting that program
great state of Michigan:
into effect. If anything ,vas implicit in the pledges of the
"Man cannot live by bread alone . What profiteth it a man
Democratic party at Philadelphia it ,vas that something
if he gain the whole world and lose hls own soul? Those ,vho ,vould be done to regulate ,vages and hours. Nevertheless,
try to trade liberty for security usually wind up by losing within a year after the election the House of Representatives
both. Eternal vigilance is the price of liberty. Every journey refused to pass the indicated la,v. But for the success of Sena•
to the forbidden land begins with the first step. These new tor Claude Pepper of Florida, in a 1938 primary election, its
frontiers that are offered to us are anticonstitutional, anti- enactment might have been delayed for years. His nomina•
democratic, antiliberal frontiers. They are the potential tion produced a temporary panic in the House, caught the
lobby off guard and the measure passed in the resulting con-
boundaries of the collectivist state."
In bi~ peroration-delivered with the belligerence which fulio n.
charactCriza his style of oratory, a belligerence which makes
306 THE PRESSURE BOYS PRESSURE FROJ.1,f THE TOP

It
r is. idle to argue that th e people m
. . h hypnotic pc,ver to m~ke sophistry look like truth, the argu-
po iuoan does ,vhat he does h b ' _,v ose name ev Jllents appeared to be exactly ,vhat they were: the sheerest
d · b· · , ar ored m, • . ery
esrra ility of legislation to UJ1. c... fl
a oor bel sgiv1ngs about
. th
e nonsense.
cou ld . not fall and a ce1"lin g above ,vhicb h ow ,vhich wages Jn cloak rooms and offices the real answers could be and
not nse. Every poll, every election i o~s of ,vork could were given. Congressmen had factories in their districts
,vage-hour legislation was a facto . d~ ,vh1ch sentiment on which were paying less than twenty-five cents an hour and
· r, m 1cated th
wante d it. To the rank and file of vote at a majority working their employees much longer than forty-four hours a
was understandable and sens1·b1 N rs the proposed law week. They would be hurt by the legislation even though
h e. o emplo
t an twenty-five cents an h yer could pay less their competitors were forced to adopt the same labor stand-
our or work his em 1
than forty-four hours a week Tb. . P oyees more ards. It was "the textile mills in my district''; "the shoe fac-
. . · ts, 1t was said by
au th onues and believed by th . competent tories in my district, you know." While this attitude was most
would increase purchasing e proverbd1alOmaha milkman, general among Congressmen from the deep South-the back-
power, re uce pov t
work and generally improve economic con . . er y, spread ward, low wage states-it ,vas shared by some northerners.
it would actually do these things is beside th:~::· ;hhether Even after the legislation was passed the Congressional
conspiracy to protect home-district sweatshops continued.
plc-tbe voting majority of the people - thought .so ~~e?"
Noncompliance was so general that Administrator Elmer
representatives in Congress, according to the civia tc~tbo:~:
Andrews received more than 20,000 complaints of Jaw viola-
an~ t~e Fourth of July speakers, arc the servants of this
tion in the first year. Yet Congressional committees system-
ma1or1ty. atically cut his appropriations and enforcement beca1ncim-
:Why, then, waa there any question about the enactment of poasible. Representative Malcolm C. Tarver of Georgia,
I
1~1~,law? Why_ did iL take a spectacular politica l victory in chairman o( the Appropriations sub-committee in charge of
I•lorida to get 1t though the rTouse, the more democratic and wage-hour (unds, boldly tried to use the power o( his posi-
rc~pon,lvc to popular will or the two briinchca of Congrcs,? tion to club Andrews into granting nn exemption to the
Anyone litt<!Oing to the wnge-hour debate• in the rr ousc candlewick bedspread industry, which was paying n101111tain •
woul<I hnvc pr1c:c•lvtd1hat opponcnl.8 of th e J('glslnt.ionwere wo1ncn in his district !i¾ to 12 cents nn hour. Failing, he
not on#wril11g the~o <p1cAtln11ft, Thcrt' wnA lo1Aor tolk nbouL ('111A11drcwl 19!19appropriation to $3,176,000. President
thr Amr1lrn11way, 1hc l11nll111111hlc right of rt free people 10 Roosevelt.flnnlly got (I snpplcn1entr1Inllotn1ent of $a,ooo,ooo
w,uk ro,lrA~1hn111wrn1y,Ovcc:rntAun hour 1r1h1•y ,vnnred1:r,, 111the do,c of the session.
11n!11Mlflr1l,lc l11tr1frrcnC'<'hy f.fOV<'.r11111rn1 111th<' nITrtlr3llf D<.'11\0Cl'IICy'S
prrscnl wnLcryconsis1e11cy rnust be nuributcd
111111,ltl,111~ 111c11
who 111lgh1,vn1H10 work lonf,frrthnn forty• 10 n con1pkx ('0111hlnn1ionoC £acto1·s,scnnc circun1su1ntinl,
fo111hour" n Wtst'k,' t'h1we ,1111~tht' lncvhnhlr olljrrllou 10 sonic ln11cnlouslytlesi11ncd.To r1uribulc it nil to the prop·
111rtl1<HI hy 1111'1111h(lrA
,vlu1rnllrcl 11po11C.orl 10 ,vitneA~how <'l'IY lohby wo11\clb<'Locxnggcratc Lhegenius o( the po.~ess•
In~ cln~,.1\111to cllsn1lssthe infiucn<'eor the syst<'tnof propn·
•l11cc•1rly thry hrllrvc·d 1111hrohlrr1lvrAor1hr hill, In nn nj\t,
,vl1r1111111101y h Ii IOAIIll I, ,vht'II r('\\I (:(ltll(l'l'~Allll.'11 p0-181.'S,lht'
~;tn,t, . ._,,~~tni.t-..ld«'<'it, skill£ul p(.'\ ,ersion of tlt·n,ocraiic
pt'-"-"""&'(: .,nd I uthlt•ss e,e1'l'ise t)f c<.'l>\\lHl\ic
power 10 arhievc
political ends. \\',.'uld be to le.,,e the phencnl\cnon unex-
pL,ined. \\"ilhout the lobby, its force of hired agents in
\\'ashingtou and all its bnck-hon1e ra111ilications, property
\\-Ould tu,e been unable to hold on this long to its plenty in
the midst of ".mt and to justify the American paradox.
Yet democracy has ,vithin itself the antidotes for its own
ills. It is still the most satisfactory system of government. The
Chamber of Commerce is right ,vhen it calls Americans the
most fortunate of the ,vorld's peoples . The trouble ,vith
America is not democracy, but its constant perversion by
selfish minorities ,vorking through lobbyists and propagand-
ists to mislead both the people and their representatives into
the belief that great ,vealth for a small number ,vill some-
how trickle do,vn through the system to the humblest citizen.
It doesn"t ,vork that ,vay .
A la"' requiring lobbyists and propagandists ~o reveal the
sources of their income and the identity of their employers
. h h l but it is not the ,vhole an.5\ver. Attorney General
nug t e P· bich vill ke
Frank Murphy is tr}ing to devise a law w '. ma
_,..,. lobb..,.;n.,.-acceptance o f fees to influence legislators .
or
di '""'' :--o . . -•-~ · nns...ible p,oJect. The
o1Jici;l1s-a crime. but 1t is an if.l.ll.l'J'>t llllr--
of the last. few yean ba,e been
must ~ful dc'relopmcntS _ ... . ~rion with the
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o:n ::toirasionsof. a•-1aualwut en.. - onl'II(_ if ..-ell
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 328.368 Cravt'ord, Xeuneth G.
C899p The pre118'\JN 'bo711•

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NOV IS 54 S 3907

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 Cra\ltord, Kenneth G.
The proasure boya •

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The pressure boys •

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ScLur1cud•r, N. Y.