throughout Arizona that huge sums of money have and are being expended for the purpose of purchasing unprecedented amounts of advertising space in practically all of the daily and weekly papers and publications throughout the State, which in many instances is controlling the editorial and news policies of the press of Arizona. The statement containing the charges asked that the committee make a thorough investigation of expenditures on behalf of Carl Hayden, Democratic candidate for United States Senator, and that it Go into the details of the present general election campaign and also the primary election that resulted in the nomination of Carl Hayden for United States Senator, the primary and the general election, to all intents and purposes, being one campaign and one election. It was also charged that Carl Hayden, Louis W. Douglas, Democratic nominee for Congress, and E. E. Ellinwood, defeated Democratic candidate for governor, were the beneficiaries of the sums appropriated by the combination referred to. Because of the serious character of the charges and the publicity given to the same throughout the State of Arizona, and because similar charges had been made by Senator Cameron in his campaign, the committee believed that the investigation should be thorough and that the fullest opportunity should be given all parties to present to the committee any evidence or information bearing upon such charges. The committee was further inclined to this course because of the attitude of Senator Cameron, and the statements contained in a campaign publication issued by him or his committee, implying that the investigation would not be thorough and would rather be an investigation of his expenditures than of the charges which he had made. Senator Cameron and his counsel asked for subpoenas for a large number of witnesses, more than 60 in all, and the fullest opportunity was afforded them and all other parties to present evidence bearing upon the charges made by Senator Cameron, Mr. Whitney, Mr. Barnum, and Senator Ashurst. Many of the witnesses subpoenaed at the request of Senator Cameron resided in remote parts of Arizona and it was difficult to secure their attendance during the hearing in Arizona. A considerable number were proprietors or editors of small newspapers published in various parts of the State and it was claimed by Senator Cameron and his counsel that it was important that they be interrogated for the reason as claimed, that there had been large sums paid to them by corporations and individuals referred to in the charges made for advertisements in behalf of the Democratic candidates for State offices and also for candidates for the Senate and House of Representatives. A number of witnesses, for whom subpoenas were issued at the instance of Senator Cameron and his counsel, attempted to evade process, and some difficulty was experienced in bringing them before the committee. Their efforts to avoid service were caused, so they testified, by the belief that they knew nothing of any matter that was the proper subject of investigation by the committee; that they had been interested only in the primary campaign and then only in behalf of E. E. Ellinwood, who was one of the Democratic candidates for governor in the primary election. They contended that the Senate committee had no authority to inquire into the primary election or into the expenditures of gubernatorial candidates in such primary. Mr. Ellinwood, having been defeated for the nomination in the primary contest, their view was that any connection they had with his primary election was, therefore, irrelevant and beyond the jurisdiction of the committee. Several of such witnesses also declined to state what funds were collected by the committee having charge of the "Ellinwood-for-Governor" campaign. The refusal of these witnesses and the facts in relation thereto will be further dealt with in the final report submitted by the committee. It is pertinent to state that Senator Cameron in the closing hours of Congress, July 3, 1926, spoke at length in regard to certain newspaper articles published in the Los Angeles Times, and other newspapers, in which his alleged connection with certain mining transactions and activities, were delineated and commented upon. In the address, Senator Cameron charged that The well-known stream of gold that is now flowing to Arizona, to insure my defeat, is only the beginning and from now on the floodgates will be turned wide open. Attention is also called to the fact that the committee to investigate expenditures in the elections was appointed in May, 1926, and was making investigations in a number of States during the months of July, August, September, and October; that no complaints were made by Senator Cameron or any other person of illegal expenditures or any misconduct in regard to the primary election or general election in Arizona until Senator Cameron wired Senator Reed on the 27th day of October; that it was known at that time that members of the committee were engaged in making investigations of primary elections in other States; and that if either member of the committee was available for service in Arizona to investigate pursuant to the resolution creating the committee, it would be impossible for him to reach Arizona before the 30th of October. Since the election was to be held on the 2d day of November it was apparent that if any results were to be obtained by reason of an investigation which would in any manner affect the election on November 2, it would have to be pushed with the utmost energy. For that reason the committee began hearings within a few moments after Senator King reached Phoenix Saturday night, and they were continued with all possible speed, both day and night until and including election day. It was physically impossible to examine all the witnesses subpoenaed at the request of Senator Cameron, and to procure their attendance at the hearing between the opening of the hearing, at about 10.30 o'clock on the night of October 30 and November 2, the day of the election. Moreover, many of the witnesses, as stated, lived hundreds of miles from Phoenix and some beyond the borders of the State; and in some cases witnesses residing within the State, because of inadequate means of communication and transportation, were unable to reach Phoenix until election day or the day following. Full opportunity was given the attorneys for Senator Cameron to examine and cross-examine all witnesses who appeared before the committee, and Senator Cameron's secretary, who personally represented him, as well as his counsel, stated upon a number of occasions during the hearing that the committee had been most considerate and had afforded every opportunity for Senator Cameron to present evidence or furnish the names of witnesses who might testify in support of the charges made. No expense was spared to procure the attendance of witnesses suggested and to obtain the testimony of as many witnesses as possible prior to the date of election. It was agreed by Senator Cameron and his counsel, as well as those representing the Democratic State committee, that when the hearings in Arizona and California were concluded, four witnesses one living in Washington, D. C., two in New York City, and one in New Mexico-might be examined at a later period in Washington. On the 13th of December, 1926, the committee notified Senator Cameron that it was ready to subpoena the witnesses above referred to and would do so at once if desired by him. In reply Senator Cameron stated that he did not think it was necessary to call the witnesses mentioned in the letter. Apparently Senator Cameron did not regard the witnesses as being able to throw any light upon the matter, and the committee, from the facts before it, entertained the same view and accordingly did not subpoena them. The committee asked Senator Cameron and his counsel, and also those representing the Democratic State committee, if they could suggest the names of any other persons who could throw any light upon the matter under investigation, and all replied in the negative. The committee, therefore, felt justified in closing the hearings. The requests made by W. L. Barnum, Democratic national committeeman from Arizona, and Mr. Louis B. Whitney, Democratic State chairman, and also by Senator Ashurst, that the committee probe into the expenditures of Senator Cameron's campaign in 1920, when he was elected to the Senate, were not acceded to by the committee, for the reason that it had no authority under the resolution under which it was acting to make investigations of campaign expenditures in 1920. THE POLITICAL SITUATION IN ARIZONA The testimony with respect to the political situation in Arizona during the primary and general election and for some time prior thereto showed the following conditions: The Republican and Democratic Parties have State and county organizations quite similar to those in other States. The laws of Arizona provide for primary elections, and the candidates nominated in the primary election become the candidates of their respective parties in the general election. The committees, both State and local, took no part in the primary election nor did they aid any candidate or employ the party machinery for such purpose. The candidates of both political parties presented their claims to the people as Republicans or Democrats, but without the endorsement or support, financial or otherwise, of party organizations. REPUBLICAN CANDIDATES Senator Ralph H. Cameron was a candidate for reelection upon the Republican ticket. He had no Republican opponent in the primary election, and there is no evidence of any expenditures made by him or in his behalf in such election. Nothing appears in the record regarding the person named as the Republican candidate for governor nor has any report setting forth campaign expenditures of the Republican candidate for governor been filed with the committee. Judge Otis J. Baughn was the Republican candidate in the general election for Representative in Congress. DEMOCRATIC CANDIDATES Congressman Carl Hayden was a candidate for the Senate in the primary election. His Democratic opponent was State Senator Charles H. Rutherford. In the primary election Congressman Hayden received 35,500 votes and Mr. Rutherford 8,995 votes. Gov. George W. P. Hunt had served as Governor of Arizona five terms and was a candidate for another term. A number of Democrats in the State were opposed to him and sought a candidate to place in opposition to him in the Democratic primaries. The record shows that Governor Hunt had no campaign committee, and in the general election his interests were cared for by the Democratic State committee. Mr. E. E. Ellinwood, who is a lawyer by profession, and one of the leading men of the State, was induced to permit his name to be placed before the people in the primary election. An "Ellinwoodfor-Governor Club" was organized, but Mr. Ellinwood refused to make any contribution to the club or affiliate with it in any way. He knew of its work in his behalf and undoubtedly was willing to be the beneficiary of its support. The evidence shows that the candidacy of Mr. Ellinwood was not connected in any way with the candidacy of Mr. Hunt or Mr. Rutherford or Mr. Hayden or any other person; that it was independently conducted and that any expenditures made in behalf of Mr. Ellinwood did not inure to the benefit of any other candidate in the primary contest or in the general election. The evidence also shows that those who actively supported Mr. Ellinwood in the primary election took no other part whatever, other than voting in the general election, nor was any machinery or organization employed in the primary election carried over into the general election. Upon the defeat of Mr. Ellinwood in the primary, the club bearing his name ceased to exist and its funds had been exhausted. Mr. J. J. Cox, a Democrat, was also a gubernatorial candidate in the primaries. There was a spirited contest upon the part of the three Democratic candidates for the primary nomination. As stated, Governor Hunt received the nomination in the primary election and thereupon became the candidate of the Democratic Party for governor in the general election. There was also a contest in the Democratic primaries for the nomination of a candidate for Representative in Congress. Mr. Lewis W. Douglas was an active candidate in the primary election and a club was organized by his supporters to promote his candidacy. It had no connection whatever with the State Democratic committee or any other committee, organization, or person, or with Congressman Hayden, who, as stated, was a candidate in the primaries for the Democratic senatorial nomination. RESULTS OF ELECTION In the general election, Congressman Carl Hayden received 44,951 votes and Senator Ralph H. Cameron 31,845 votes as candidates for United States Senator. Gov. George W. P. Hunt was reelected, receiving a majority of less than 400 votes. Louis W. Douglas received 43,725 votes, 19,223 more than his Republican opponent, Judge Otis J. Baughn, received. PRIMARY CAMPAIGN EXPENDITURES The election laws of Arizona require all candidates to file within 10 days after a primary election an itemized statement of all expenditures, including money and other things of value. No candidate for Congress may expend in excess of $1,000 and a candidate for the United States Senate may expend not to exceed $1,500. EXPENDITURES OF REPUBLICAN CANDIDATES The record shows that Senator Cameron organized a "Cameron campaign committee," the manager and treasurer being Hoval A. Smith. Mr. Smith was traveling throughout the State making political speeches during the greater part of the campaign, so that the active management of the campaign headquarters was largely in the hands of E. W. Campbell, Senator Cameron's secretary, and John R. Towles, the collector of internal revenue for the State of Arizona. The accounts of the Cameron campaign committee were so loosely kept as to make it difficult to determine correctly the amount of money received and expended by the committee. A number of loose. sheets of paper containing various figures were presented to the committee by Mr. Smith, Mr. Towles, and Mr. Campbell. These various reports and exhibits show some differences in the total amount of receipts and disbursements. As to personal expenditures, Senator Cameron presented to the committee a sheet, listed as Exhibit 15, containing the following items: Personal expenses from Sept. 8 to Oct. 21, 1926, inclusive, viz, hotels, meals, etc._ Transportation, viz, auto, railroads, etc.. Total. $324. 75 690. 21 435. 00 1, 450. 01 And in a final statement, submitted to the Secretary of the Senate, sworn to on November 8, 1926, the following items appear: From Oct. 22 to and including Nov. 2, 1926: Personal expenses, viz, hotels, meals, etc...--- Total $115. 00 234. 00 183. 50 532.50 making a grand total expended personally by Senator Cameron in his campaign of $1,982.51. John R. Towles, according to his testimony, expended money and incurred obligations in aid of Senator Cameron's candidacy, amounting to $1,360.65, which was not reported. Of this amount $600 was paid for the services of a publicity man employed by Towles in behalf of the Cameron campaign committee. The balance, or $760.65, was the cost of advertising in various newspapers in behalf of Senator Cameron. Mr. Towles was very active in the campaign and received and disbursed money, acting as de facto treasurer with respect to a considerable part of the contributions and disbursements. The record shows that the postmaster at Globe, Ariz., collected $595, which was expended in behalf of Senator Cameron for advertising purposes. No report was made of this transaction by Senator Cameron or his campaign committee or by any person or committee. |