Great Lobby Hunt, Cont.

The Senate Lobby Committee last week continued its pursuit of persons who seek to influence federal legislation by fair means or foul. Chief incidents of the pursuit were:

Investigator. Back into service as a Senate investigator was brought redheaded, freckled-faced John G. Holland, 30, a Prohibition attorney for the U. S. in New York. Five years ago as a clerk in the office of Senator Thomas J. Walsh of Montana, Mr. Holland hounded out most of the secret facts which revealed the naval oil scandals.

Sugar Trail. Last fortnight was revealed a domestic (beet) sugar lobby to raise the duty on this commodity. Last week the Senate huntsmen ran to earth an opposition lobby, representative of Cuban (cane) sugar interests, bent on keeping this tariff rate down. The cane men had been spending dollar for dollar--$75,000 per year--to keep even with the beet men.

Herbert Conrad Lakin of Manhattan, president of Cuba Co., a $165,000,000 holding company controlling plantations, mills, railroads in Cuba, told a frank, disarming story. Freely he admitted that he had lobbied, that he had received no pay for his services, that the job was "very distasteful" to him. Eleven Cuban companies as cash contributors had combined to maintain the cane sugar lobby at Washington and Mr. Lakin said he was drafted to head it, though he confessed that he was "a poor mixer."

Lobbyist Lakin said he had been in Washington eight months, had seen twelve Senators, nine Congressmen on sugar rates. His practice was to explain who he was, what he represented and then supply "facts and figures" to Senators who would receive them. Under him also was a large and active press-agency for low sugar rates. Cane sugar interests Mr. Lakin regretted to say, would be "up against it" unless 'they had a Washington lobby.

Into the Lakin testimony crept one famed name--Major-General Enoch Herbert Crowder, retired, administrator of the War draft and onetime (1923-27) U. S. Ambassador to Cuba. According to Mr. Lakin, General Crowder, a close personal friend of President Gerardo Machado of Cuba, had, on leaving the country, been asked by that high official to do all he could to protect Cuban sugar interests. General Crowder had gone to Washington as Lobbyist Crowder, had vainly attempted to patch up a tariff agreement between foreign and domestic sugar producers. For his efforts he received "a small stipend" from Cuban sugar mills.

"Old Joe." Most famed of tariff lobbyists is Joseph ("Old Joe") R. Grundy, president of Pennsylvania Manufacturers' Association, wealthy worsted yarn-spinner of Bristol. Last week he appeared before the lobby committee. A Quaker, he admitted that his belief in a sky-high protective tariff is "next to my religion." He made no bones about his occupation, for he has been lobbying before Congress for high tariffs since the Dingley (1897) bill. His tariff ethos:

Domestic manufacturers contribute cash to political campaigns in which a high tariff is pledged. The election won, manufacturers expect a return on their "investment" in the form of increased duty rates. To see that they get it, to insure the fulfillment of campaign promises, is the moral mission in life of such lobbyists as Mr. Grundy.

Lobbyist Grundy, 67, grey-haired, white-mustached, thick through the shoulders, said he had raised $750,000 for the Coolidge campaign in 1924, had helped to raise "almost a million" for the Hoover campaign of 1928. This year he had spent $20,000 out of his own pocket in seeing that Pennsylvania industries got back, in higher tariff rates, these political contributions.

The Hawley-Smoot bill, he thought, was "a very limited revision," although it provided for increases in 42 of Pennsylvania's industries, representing additional protection of almost a half-billion dollars. But said Lobbyist Grundy: "Rates don't mean anything. They're not worth a row of three hoots. The increases for Pennsyl vania are so insignificant that they don't amount to anything. What counts are the administrative provisions of the bill." He explained that his lobbying method included no publicity, no "press bureaus' but direct personal contact with Senators and Congressmen who write tariff bills.

He bemoaned the passing of the oldline lobbyist who "really knew the tariff." He suggested the formation of a special school in which younger men could be taught the art of tariff lobbying. Praise from the master-lobbyist: "If there were a hundred brilliant young men like Mr. Eyanson [see below] in Washington, the country would be better off. . . ."

Flayed. Silent and alone in his rear-row seat last week sat Senator Hiram Bingham of Connecticut while Democrats on the Senate floor excoriated his employment of Charles L. Eyanson, agent of the Connecticut Manufacturers' Association, as his tariff tutor (TIME, Oct. 7). The lobby-hunting committee brought in a statement of fact, in the Bingham-Eyanson case, without major recommendations. Declared Chairman Caraway of the Lobby Committee: "This transaction was beneath the dignity of the Senate and would tend to shake the confidence of the American people in the integrity of legislation." Democratic Senator Dill of Washington suggested that the Senate Finance Committee should "purge itself" by removing Senator Bingham from its membership. Cried Democratic Senator George of Georgia: "The shadow of the Connecticut Manufacturers' Association is across every schedule and every paragraph of this pending tariff bill. That shadow becomes darker and longer as time goes on. ... A badge of dishonor and shame!"

Several days later Senator Bingham rose lankily to his full height and spoke in self-defense. He shouted angry charges at the lobby committee, accused it of prejudice, dirty politics, a determination to besmirch his reputation. He insisted his motives were pure, that he had done nothing improper. Rather lamely he accused Senator Elaine, a lobby-hunter, of carrying a capitol policeman (federal paid) to Wisconsin last summer, using him as a chauffeur. This Senator Elaine vehemently denied. Other Senators arose, attacked Bingham without mercy. Senator Norris broadly hinted at a resolution of censure.