Watergate Hearings: Senate Select Committee on Presidential Campaign Activities, June 6, 1973 Testimony of Hugh Sloan
Watergate Hearings: Senate Select Committee on Presidential Campaign Activities, June 6, 1973 Testimony of Hugh Sloan
Watergate Hearings: Senate Select Committee on Presidential Campaign Activities, June 6, 1973 Testimony of Hugh Sloan
Watergate Hearings: Senate Select Committee on Presidential Campaign Activities, June 6, 1973 Testimony of Hugh Sloan
Sam Ervin (D North Carolina). In view of the fact that Senator Talmadge is the floor manager of the Agriculture bill which is the pending order of business, I am going to waive my right to question the witness. I am going to swap it with Senator Talmadge. Herman Talmadge (D Georgia). Thank you, Mr. Chairman. Mr. Sloan, I get the impression that you are a forthright and candid man from your answers and your response to the questions that have been asked this morning. Exactly what were your duties at the finance committee? Hugh Sloan. It varied somewhat over different periods of time, Senator. In the very early periods of the campaign, it was really an organizational function, setting up the multiple committees that allow gift tax distribution of contributor's contributions, organizational work, hiring of people, staffing out, budget planning. As we went on later on, it involved all the banking, handling of the bank accounts. When we came up to April 7, when we got into this new law period, just prior to that, we hired a full-time, qualified CPA. I m not an accountant myself, to handle the new law period, the increased volume of administrative work with regard to that. I would say at that point in time although I carried the title of Treasurer I would say that most of my duties were administrative and liaison with various state committees, educating state committees on the new law requirements and so forth.
Watergate Hearings: Senate Select Committee on Presidential Campaign Activities, June 6, 1973 Testimony of Hugh Sloan
Herman Talmadge (D Georgia). I assume you were familiar with the Campaign Disclosure Act that went into effect on April 7th of that year. As you know at that time all income and disbursements had to be very stringently reported. Were you aware of that fact? Hugh Sloan. Yes, sir. Herman Talmadge (D Georgia). Now, you accumulated, I believe, large sums of cash prior to the time the April the 7th law came into effect, did you not? Hugh Sloan. I was the custodian of a large sum of money. I did not personally collect it myself. Herman Talmadge (D Georgia). You had on hand, I believe, about $910,000 that you disbursed in cash at one time or another. Is that substantially accurate? Hugh Sloan. It is close to a million dollars over this entire period of March through the end of this period. Herman Talmadge (D Georgia). Now, much of that money was disbursed subsequent to April 7, 1972, was it not? Hugh Sloan. Some of it was, not the
Watergate Hearings: Senate Select Committee on Presidential Campaign Activities, June 6, 1973 Testimony of Hugh Sloan
Herman Talmadge (D Georgia). Then why did you not comply with the Disclosure Act that went into effect on April 7th of last year? Hugh Sloan. For a variety of reasons, Senator. One, I was not treasurer of those funds and they were not identified to a committee, so I could not personally file them with my committee. Two, I understood them by our operating practice to have been essentially committed in prepayments to individuals within the campaign along the same guidelines as the $5.5 million that had been made in prepayments in terms of check disbursements. Herman Talmadge (D Georgia). Well it can't be prepaid until it is delivered, can it? Hugh Sloan. My difficulty with this, Senator is that it is an assumption on my part. I was not part of the decision as to, in fact even whether these funds were committed. I approached the problem from the other side. I was told precisely what to report and what fell into this committed category.
Watergate Hearings: Senate Select Committee on Presidential Campaign Activities, June 6, 1973 Testimony of Hugh Sloan
Herman Talmadge (D Georgia). Did you understand that on midnight on April 7, 1972, that all expenditures thereafter had to be reported in detail and subject to audit by the Comptroller General of the United States? Hugh Sloan. Yes, sir, but my understanding was these moneys, a decision had been made and as far as I was concerned they were considered expended prior to that time. Herman Talmadge (D Georgia). You took the view then, that if it was on hand and someone else told you that it had been committed and it absolved you of responsibility under the law? Hugh Sloan. Yes, sir. Herman Talmadge (D Georgia). You were following higher orders, higher authority, not making decisions on your own accord? Hugh Sloan. Sir, I would not want to be put in the position of passing the buck on this. I may have had a responsibility here. I do not believe I did. All I can tell you is that in my understanding of the law, I believe I complied. That understanding, particularly given some recent developments, may in fact be totally incorrect. I concede that.
Watergate Hearings: Senate Select Committee on Presidential Campaign Activities, June 6, 1973 Testimony of Hugh Sloan
Herman Talmadge (D Georgia). What officials at the Committee for the Re-Election of the President and the Finance Committee for the Re-Election of the President, knew of these cash disbursements that you made? Hugh Sloan. Officials of the Committee, I would say, with the exception of Mr. Liddy, who received some of them himself, but he would not have a comprehensive understanding of the total picture, I would say Secretary Stans was the only other official who had a complete listing because it was to him that I made my reports on these cash funds. Herman Talmadge (D Georgia). Who had authority to call you up to deliver X number of dollars to X individual? Hugh Sloan. There were various authorities at various times. Prior to Secretary Stans coming, Mr. Kalmbach had the authority for a while. He passed it to Mr. Mitchell. I was told I was never to make any cash disbursements without Mr. Mitchell's approval. That subsequently was passed to Mr. Magruder and we came up into the April 7th period, and the proposition of the request for cash funds then went over that period. At that point in time I went back to Mr. Stans in each instance to ask whether in fact he agreed and acquiesced in this continuing payout of cash funds under this basis of a budget that had been presented to him. Herman Talmadge (D Georgia). In other words, from time to time, four or five different individuals had authority to tell you to disburse the cash and you did so? Hugh Sloan. Yes, sir.