Misquoted

A report went far and wide through the press. Mr. Smith Wildman Brookhart, newly nominated for the Senate in Iowa (TIME, June 14), had made a speech to the Iowa Federation of Labor at Mason City. He was reported as having advocated:

"1) Earnings on capital should be limited to 5%.

"2) Earnings over and above the efforts of labor and the use of money should be turned back into the business, one-fourth of the profits to be kept to keep the business progressing and the remainder returned to the members in proportion to the amount of business transacted."

It was suggested that the Republican organization in Iowa should promptly repudiate him and his "Bolshevism."

Next day Mr. Brookhart said "Pooh, pooh!" to reporters:

"There was nothing new in my Mason City speech. It was the formal speech on co-operatives I have been making for years at farm and labor gatherings. What I advocated was that 5% would be the proper limit of return on co-operative enterprises. Nothing was said about commercial business.

"Most co-operative laws provide for 10%.

"I said the economics of co-operatives is based on certain principles. First, one man, one vote. This is as old as the system started by the Rochdale pioneers. Second, earnings on capital in co-operative enterprises should be limited to 5%. It's modeled after the Rochdale system, but in this criticism they didn't even spell Rochdale right.

"As to Socialism, the Socialists are more opposed to co-operative enterprises such as I advocate than they are to commercialism."

While the echoes of the incident were still resounding in the press, Mr. Brookhart paid a visit to his old stamping ground, Washington, to which he hopes to return next March. He was there, he said, in the interest of farm relief legislation. Availing himself of the privilege of a former Senator, he went into the Senate Chamber, was cordially greeted. He got to talking in one corner with Senators Walsh, Caraway, and Jones (of New Mexico), all Democrats, while Senator Kendrick of Wyoming was making a speech. Something very amusing must have passed among the four, for Senator Caraway poked Mr. Brookhart in the ribs and they all burst out laughing. Mr. Dawes rapped for order.