Gas Money

The U.S. Senate could hardly have been more serene. Debate on the natural-gas bill (TIME, Jan. 30 et seq.) was nearing an end, the opposition was wheezing its last, the votes to pass the bill seemed well in hand. When South Dakota's comma-conscious Republican Senator Francis Case rose to speak, it was the signal for other Senators to burrow deeper into their newspapers or strike up desultory conversation with their neighbors. But by the time Francis Case sat down, he had shaken the Senate to its foundations.

He had been favorably inclined toward the gas bill, Case related, but he had decided finally to vote against it. His reason: he had received $2,500 as a "campaign contribution" from a non-South Dakota lawyer, a stranger to Case, who was interested in passage of the gas bill. Case refused to name the lawyer, was vague about other details, but was clear in his implication of vote-buying by gas producers.

Bypassed Phantoms. The gas bill's supporters, anxious to get it passed and rid gas producers of federal supervision, were aghast. The contribution to Case, suggested Oklahoma's Democratic Senator Mike Monroney, was a "dead cat" planted by an opponent of the bill so as to cast suspicion on all Senators voting for the measure. And, snapped Arkansas' Democratic Senator William Fulbright, Case had better be ready to detail his charges "if he expects to stay in public life." Between the time of Case's speech and the day on which the gas-bill vote was scheduled, the bill's managers had a single weekend to get their legislation back on the tracks. They were able to do so only because of the skill of Majority Leader Lyndon Johnson, who had dedicated long hours to making the way straight for the bill.

Last week, on the day of voting, Johnson was ready. With the approval of Minority Leader William Knowland, Johnson demanded that the Case charges be investigated by a special Senate committee--but not until after the gas-bill vote. "The Senate of the U.S. can ill afford to prostrate itself before phantoms," thundered Johnson. "This is no time for hesitation." The Senate did not hesitate; it followed its leaders and defeated all efforts to postpone a vote. After 10 1/2 hours of maneuvering, the gas bill was passed and sent to the President by a vote of 53 (22 Democrats, 31 Republicans) to 38 (24 Democrats, 14 Republicans).

Honor Beclouded. Then, with an august frown, the Senate turned to deal with Francis Case, who by devious but predictable senatorial reasoning was thought to have beclouded the honor of the entire body. Georgia's Senator Walter George was named to head the special committee investigating the Case contribution. Meek Francis Case (he was so overwhelmed by his notoriety that at one time newsmen found him hiding, face half-shielded, in a telephone booth) was the first witness.

Case's opening statement rambled from South Dakota weather (blustery) to his family remedy for sinus headaches (a nasal jelly). But there were some hard facts. On Jan. 25. said Case, he received word from South Dakota that a Nebraska lawyer named John Neff had contributed $2,500 to his campaign. Since Case had never received more than $300 in a single contribution, the news "sort of took my breath away." The donation was especially puzzling because Neff's name "did not mean anything to me." Case therefore checked around, learned that Neff had been asking around about Case's attitude toward the gas bill. Said Case: "I was alerted." And thus alerted, he made his Senate speech.

Committee Counsel Charles W. Steadman bored in on cross-examination while the Senators on the committee watched approvingly. Asked Steadman: "Do you claim anything illegal was done?" Murmured Case: "I don't know. I'm not an attorney." Snapped Steadman: "You are the only one who can tell us whether you feel there was an improper attempt to influence your vote." Replied Case, shrilly: "I do not know . . . All I know is that it was left by a man who was interested in the gas bill." Said Steadman: "You don't know the answers to any of those questions. You are certainly leaping to a lot of conclusions."

Scouting Trip. But that Francis Case had leaped to some pretty accurate conclusions was indicated when Lawyer John Neff was called as a witness. Neff identified himself as a $12,000-a-year lobbyist for California's Superior Oil Co., which also produces natural gas. Last fall, said Neff, he went to South Dakota to scout Case's views on the gas bill, wound up talking to the business manager of the Argus Leader, Ernest J. Kahler. Neff inquired if Case needed campaign funds. Kahler said he might. Neff asked Kahler to find out how Case stood on the gas bill. Kahler subsequently wrote that Case was inclined toward the bill.

Last January, Neff continued, he also learned from aides in Case's Washington office that Case was favorably disposed toward the gas bill. He therefore went to the Shoreham Hotel, where he talked to Elmer Patman, an attorney for Superior Oil, and recommended the contribution to Case. Patman peeled off $2,500 from a "personal" fund, which he handled for Superior's President Howard Keck of Los Angeles. Later, Neff flew to South Dakota and turned 25 old $100 bills over to Kahler for delivery to the Senator's campaign fund.

Explosive Pressures. Called in his turn by the committee, Patman told of giving the money to Neff. Said he: "I told him, when you deliver it, make it very clear this money is the money of an individual . . . and there are no strings attached to it." Would Patman have given Neff the money if Case were opposed to the bill? asked Counsel Steadman. Patman hedged, then said: "As far as I'm personally concerned, the answer would have been no!"

Up to week's end the leaders of the Senate had managed to confine the hearings to the specific Case incident. But throughout the legislative history of the gas bill, lobbyists both for and against the measure had been applying explosively high pressures. The Case case was just one--and not necessarily the most flagrant--instance of their activity. The general aroma would linger on until the Senate itself cleared the air with a fullscale investigation of gas-bill lobbying that would doubtless reach far beyond Francis Case, the man who fortunately checks the commas.

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