Conflicts of Interest

Report Outline
Ethical Standards in Government
Privileged Position of Certain Groups
Means to Curb Conflicts of Interest
Hardship Cases Under Conflict Rules

Ethical Standards in Government

Interest Conflicts Questiion in Next Congress

President eisenhower, speaking at Notre Dame commencement exercises on June 5, stressed the need “to review carefully the conflict-of-interest restrictions which have often prohibited the entry into government of men and women who had much to offer their country.” The President was referring in particular to restrictions that sometimes force top business leaders to decline proffers of appointment to high posts in the federal establishment, because they could not serve without divesting themselves of security holdings at too great a sacrifice.

Other aspects of the conflict-of-interest problem, applying to federal employees in general or to the heads and workers of particular agencies, have received the close attention of committees of Congress during the session now drawing to a close. A House Judiciary subcommittee which considered the general problem was not able to agree on terms of new legislation, but its chairman, Rep. Emanuel Celler (D N.Y.), observed on June 12 that the question was of primary importance and he voiced the hope that an effective measure would be enacted by the next Congress. The House Commerce Committee unanimously approved a bill, June 22, aimed to enforce new ethical standards in the government's regulatory agencies. Action on the bill before adjournment is hardly likely, but it no doubt will be reintroduced and pressed for passage next year.

Resignations of Certain Eisenhower Appointees

Attention has been drawn to the conflict-of-interest question by investigations into cases in which public officials either have acted without regard for the proprieties of public office or have given the appearance of allowing private considerations to influence their decisions on public matters. The vigor with which Democratic-controlled committees of Congress have investigated such cases during the Eisenhower administration represents in part a reaction to the charges of “corruption” leveled against the Truman administration by Republican campaigners in the 1952 presidential election contest.