In 1930 Nelson served on a House Committee convened by Rep.
Hamilton Fish III of New York to investigate communist activity in the United States. When the committee's report was issued in early 1931, it called for the outlawing of the Communist Party in the United States, denying citizenship to naturalized communists, and other measures to guard against what it saw as a substantial domestic political threat. Nelson refused to sign it, and issued his own minority report, finding that "communism is making no menacing headway in America" and recommending that no new legislation need be enacted. He decried the "hysteria" over Communism, declaring,
"Our best defense against the red shirt of the Communist and the black shirt of the Fascist is the blue shirt of the American workingman." The
New York World congratulated Nelson as the "one member of the committee (who) was able to keep his feet on the ground". ==1932 election==