Defensive Investigation

"As many as are in favor will rise and stand until counted," ordered Speaker Byrns.

Figures popped up all over the House. The Speaker peered down at the floor, counted rapidly up to 240.

"The ayes will be seated and the noes will rise."

Only four Representatives rose to their feet. Thus the House last week adopted a resolution to investigate and determine whether the Townsend Plan to grant $200 a month pensions to all good oldsters was a racket, operated for the benefit of its sponsors.

Representative C. (for Charles) Jasper Bell of Kansas City made the chief argument for the investigation. Said he: "The late years of depression . . . have been a fertile field in which these quacks and charlatans, these false prophets of social reform have promoted their schemes and rackets representing vast sums in unholy profits at the expense of tens of thousands of good and faithful but deluded followers. . . . I cast no reflection whatsoever on Dr. Townsend as a medical doctor. . . . but, as a doctor of the ills which afflict our social order, he is a charlatan and a quack."

Declared Verner W. Main, a Michigan Republican elected to the House last year with the aid of local Townsendites (TIME, Dec. 30) : "I am in favor of the investigation but I don't think we ought to spend $25,000 or $50,000 cutting down a beanstalk to see why Jack doesn't fall. . . . You are attempting to do that which Canute of old failed to do, when he made his futile gesture of commanding the ocean to recede."

Cried Representative Martin F. Smith of Washington, a Townsendite Democrat: "Certified public accountants have approved the plan's finances. . . . We welcome the investigation but we fear we are fiddling here while Rome is burning." There was no halting the tide of 240-to-4. That evening Robert E. Clements, secretary-treasurer of the Townsend organization, scornfully declared the investigation to be "pure and unadulterated political persecution. . . . These monkeys have played right into our hands. They are giving us the biggest piece of publicity we could ever have hoped to get. We shall be exonerated."

Finances. The interest of the House was addressed not to the pensions the aged hope to receive but to the dues they are hopefully paying to Townsend Clubs. Grandiose claims have been made that as many as 8,000,000 persons have joined Townsend Clubs. Members are supposed to pay a 25-c- initiation fee, 10-c- a month in dues. There is also a Townsend National Legion for well-to-do oldsters, who pay $1 a month dues. More money rolls in from the sale of buttons, badges, medallions, pictures of Dr. Townsend, and the Townsend Weekly, with possible revenue adding up to millions. According to Representative Bell there are just three officers, directors and stockholders of Townsend Old Age Revolving Pensions Ltd.: Dr. Francis E. Townsend, Secretary-Treasurer Clements and Walter L. Townsend, a brother of Dr. Townsend. The ostensible purpose of the House investigation is to determine whether Messrs. Townsend & Clements might be using the mails to defraud their followers, whether any of their income is being spent in political campaigns in violation of the Corrupt Practices Act.

To the Press, Secretary-Treasurer Clements recently gave a more modest explanation of Townsend finances: He and Dr. Townsend get $100 a month and expenses; many members are behind in dues; much money goes for organization, printing, postage, radio time and pay for 600 employes; up to last June $628,000 had been collected and all but $51,000 spent; collections are between $75,000 and $100,000 a month; sales of buttons, literature etc. have grossed about $175,000.

50-50. Significant fact is that, unlike other committees of the House, nearly all of which are top-heavy with Democrats, the committee to investigate the Townsend Plan consists of four Democratic and four Republican members. This Democratic generosity was due to the majority's desire to have Republicans share equal responsibility for the investigation. Republicans were glad to share the responsibility because, practically speaking, the investigation is a move to defend sitting members of Congress from the attacks of the Townsendite candidates.

The election of Townsendite Main in Michigan threw a bad scare into politicians of both parties. In many a Congressional district, especially in the Pacific Northwest, well-organized Townsend Clubs may hold the balance of power in the next election--a power which they have freely threatened to use against Congressmen who refuse to endorse the Townsend Plan. Representative Clarence McLeod of Michigan added to the panic of his colleagues by predicting that the Townsend vote would upset election results in at least 100 districts next autumn. Representative Chester C. Bolton of Cleveland, richest House member, publicly admitted his apprehension. Senator McNary, who is up for re-election in Oregon, may have difficulty in winning this year because of Townsendite opposition. Representatives Isabella Greenway of Arizona and Earl C. Michener of Michigan have both sought political safety by going over bag & baggage to the Townsend camp. Senator Borah has so antagonized Townsendites, by advocating pensions of only $50 to $60 a month, that he wrote to a friend in Idaho:

"I am well aware that my position will be disappointing to many friends, which I deeply regret. I am also aware that it will likely defeat me, should I be a candidate for re-election."

Significance. Within the last year, blind enthusiasm for the Townsend Plan has grown to such proportions among U. S. oldsters that not a single Congressman today escapes the political pressure of this organized minority. A wholesome majority of the House considers Dr. Townsend's $200-per-month pension scheme, based on a 2% transaction tax, a financial monstrosity which would probably wreck the country's economy. But the same House majority also realizes that a clear-cut statement of their views would do each & every member inestimable political damage in home districts. As a matter of political self-preservation, therefore, the House last week started its oblique counterattack on the Townsend Plan, hoping to show it up as a ridiculous racket and thus deflate its importance in the November elections. As the spear point of the counterattack, Representative Bell could afford to take the risk of sponsoring the Townsend inquiry because back of him in Kansas City is Boss Tom Pendergast with his redoubtable political machine. To other Congressmen their lesser risk seemed well worth taking: Jasper Bell, at the worst, would probably be able to discredit the Townsend Plan by showing that a lot of oldsters' dues money was going down a hopeless drain.

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