Evening star., 1920-10-18
CHALLENGES RIGHT
OF HENDR|CK TO SIT
At GAS HEARING
Attorney Clayton Says Com
missioner Owns StoCk-D.C.
Official Reports 1t Sold.

ne right of j. Thliman ienOrlck
TO sit as a member of the Public
Utilities Commission in considering
gas rates was challenged by William
Mch. Clayton, attorney for the Fed
Grafton of Citizens' Associations, at
the opening of the gas hearing at
the District building today.
Attorney Clayton based his chal-
lensc on the ground that Commls-
sioner Hendrick had shares of stock
of tn company III his name. in Vlo-
lation of the public utilities act.
After a lively exchange of aues-
tions between Mr.. Clayton. Chairman
kutZ of the commission and Attorney
Benjamin Minor of the gas company,
it was finally brought out that Mr.
Hendrick had disposed of all his
stock in the gas company to Charles
]. Corby.
Mr.. Hendrick Tells of Transfer.
Commissioner Hendrick himself re-
vealed the details of the transfer. He
said he had nothing to conceal. nor
has he ever had anything to cover up.
Some of the stock, he said. was bought
for himself and some for customers.
he having been in the brokerage
business.
When the ommsSionership was
rendered him, he said, he was i,ind- %
full of the fact that he held stock
in the gas company and he told former
Commissioner Brownlow and Col kutz
of his holdings.
He also was mindful of the fact, he
said, that he would suffer the loss OF
approximately 100000 by disposing OF
it, but that he did so believing that
the people of Washington would nave
faith in his sincerity.
Commissioner Hendricks Statement.
Commissioner Hendricks statement
in regard to his dealings in the stock
of the gas company follows:
Il would like to make state
ment. l have nothing to conceal,
nor have l had from the time first
commenced dealing in shares OF stock
of the Gas Light Company. l bought
that stock sometimes for myself ana
sometimes for customers. nearly al
ways carrying the stock in my own
name The amounts owned for my
self and customers have gone up and
down as occasional transactions might
make necessary.
when this appointment was ten
dered me I was Immediately mlnd1ul
of the fact that l had 2.31S shares OF
stock in the gas light company that
cost me approximately $SS a share. L
knew that the present market was
good deal less than that. ] knew that
that would be loss or somewhere
around 100000. I considered whether
l should accept such a loss. ! also
considered whether the people or
Washington knew me we'll enough TO
believe in my integrity and TO pc
lieve that if called on to act in the
capacity of a public utility commis-
sioner I should do justice regardless
of what own now, or had owned, or
might own ten or fifteen or twenty
years from now; that my record was
clear, / believe. / thought my char
acter was sufficiently known to JUS
tify me in accepting.
Says He Lost 100000.
powers higher up were informed
as to my status and as to the loss
would incur. l also took pains to ac-
quaint the then Commi ssioner Brown
low and Engineer Commissioner kutz
with the fact that 1 did not care 70
take the oath of Office on the 10Th or
September, as I had not finished my
Individual business and had not yet
concluded the delivery of the stock
which 1 had sold in the Washington
Gas Light Company l thought 1t
over carefully. l believed that my
record for integrity was clear. / be-
more was sufficient penalty to pay to
Justify me in the minds of the peo-
ple of Washington as being an honest
and fair man. That delivery Of stock
occurred before I took the oath OF
Office and 1 have never taken any
oath that did not mean all it said. l
have never made a promise that l
have not kept"
When Mr. Hendrick had finished
speaking Mr. Clayton said he was
willing to accept the Commissioners
statement.
kutx Thinks Apology Due.
cit seems to me you should do more
hi q
Chairman kutz.
1t was brought out in th- testimony
that when Mr.. Clayton vent to the
office of the gas comLAny Saturday
to inquire about Mr.: Hendricks hold
ings George NJ. Whitwell, assistant
secretary, told him the stock was
very inactive and that he could not
recall any large transfers in the past
few months.
On the stand at the hearing today
rick's stock was transferred while he
was out of the city, and that, while
he learned of the transaction upon
his return to the city. he failed to
recall it until after Mr.. Clayton had
left his office nasss;nn Saturday y, ,,ana.o,,.s
statement Mr.. Clayton said he felt it
was far better TO have the question
brought up and disposed of at the
hearing than to allow it to circulate
quietly through the city.
"The case will proceed" said Chair
man. Kutz, after which the taking Of
testimony on the companys applica-
ton was begun.
What Gas Company Asks.
The company is asking for an in
crease from SIPS to $1.44 per thou
sand cubic feet in the price of gas to
private consumers and a correspond
ing step rate in the price to large
consumers. The rate of $1.44, if
granted. would apply to all users OF
100, 900 cubic feet or less a month.
Attorney Benjamin A. Minor, before
introducing the gas company's evil
dence. declared the company is only
seeking a schedule Of rates that will
enable it to earn reasonable rate OF
return on the value Of the property
intended to cover the Georgetown Gas
Light Company also.
He reminded the commission that
the gas company has accepted the
fair value placed upon its property
by the commission. and that, there
fore. it only remains for 1t to de-
termine what is a fair rate Of return
on that value.
Mr. Minor started to make . state
ment in explanation of the company's
request for a rate of return Of s per
cent on fair value instead Of per
cent, DuI hutZ suggested
that the company submit ito evidence
first.
Civic Bodies Represented.
There was an unusually large at.
tendance of men and women from va
rious civic organizations in the board
room at the opening of the hearing.
when Mr.. Clayton made the unexpected
announcement that he desired to chal-
lenge the right "of one member of the
commission to sit in this case"
He began by reading the paragraph
in the public utilities act providing, in
substance, that no member of the COM
mission shall be interested directly or