G. O. Problem

President Hoover was disturbed last week. His good friend Claudius Hart Huston, for whose presence in the chair of the Republican National Committee, he, as the party's head and front, is primarily responsible, was in serious trouble. One Senator after another came to tell the President that, for the party's good, he should ask Chairman Huston to resign. Chagrined though he was with his old friend's behavior, President Hoover was unwilling to turn him out precipitately, seemed hopeful that the scandal would, somehow, subside without his direct interference. In spite of Mr. Hoover's attitude, betting men about Washington would give long odds to anyone who thought that Mr. Huston would remain G. O. P. Chairman for many more weeks.

This new G. O. Problem was the result of the Senate Lobby Committee's investigation of Mr. Huston's activities in behalf of Muscle Shoals. A Tennessean, Mr. Huston long headed the Tennessee River Improvement Association, which maintained a Washington lobby to oppose Government operation of the Government's $150,000,000 power plant, built during the War to make nitrates for gunpowder. The T. R. I. A. favored acceptance of some private bid for the plant's use. Mr. Huston collected cash, sent more than $156,000 in four years to his Washington headquarters. In 1928 he had a large hand in writing the Muscle Shoals plank in both the Republican and Democratic platforms. His association lobbied for the Muscle Shoals bid of the American Cyanamid Co., under which Union Carbide Co. would get a share of surplus Muscle Shoals power.

Last September when Huston became the G. O. P.'s national chairman--highest party post in the land--to succeed Dr. Hubert Work, he resigned as head of the T. R. I. A.

Last week was disclosed this set of facts:

In February 1929, Mr. Huston had a stock margin account, under another name, with the Manhattan brokerage firm of Blyth & Bonner. He was $19.381 short. From Fred H. Haggerson, head of Union Carbide, he urgently solicited $22,000 on the plea that it was necessary to keep his Muscle Shoals lobby alive. He put this sum into his stock margin account. In June he obtained from Union Carbide another "contribution" of $14,100 which also went to Blyth & Bonner, as margin for the purchase of $46,000 worth of stocks, from which he secured a profit of $526. Not until two months after he received Union Carbide's second contribution had he paid over to T. R. I. A. the full $36,100, in instalments.

On the witness stand last week Mr. Huston tried to explain away the appearance of stock trading on his lobby's funds. He said the Union Carbide contribution had been made for Muscle Shoals maps and data--a statement Mr. Haggerson denied. He insisted that the deposit of the money in a stock account instead of in a bank was only "a business convenience." His $526 profit he claimed was really unpaid interest on sums he had already advanced to T. R. I. A.

Mr. Huston has not been a successful G.O. P. Chairman. He has been sued on private debts, which he settled out of court. He has closeted himself at committee headquarters, refused to see the press or visiting G. O. Politicians. He has few friends among the 48 Republican National Committeemen. Many a Republican Senator eyes him with disfavor because of his noncooperation on patronage.

These factors, climaxed by last week's revelations, lent substance to the belief that he would be eased out of the G. O. P. chairmanship in some way that would save his and his party's face. Joseph Randolph Nutt, G. O. P. Treasurer, called on President Hoover last week, presumably to tell him that the party could collect no funds for the 1930 campaign if Mr. Huston remained in office.

"I have no intention of resigning. Why should I?" was Mr. Huston's defiant retort to those pressing President Hoover for his removal.

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