Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-09-21
SAYS POWER FIRM
PAID FOR PUBLICITY
Utilities Hearing Witness
DiscIoses Circulation of Edi-
toriaIS by Alabama Co.
By the Associated Press.

BY the Associated Press.
Circulation of newspaper editorials
III opposition to Government operation
of Muscle Shoals and the Boulder Cam
yam dam project at the expense of the
Alabama Power Co. was disclosed today
in the Federal Trade Commissions in
/veStigation of power utilities by Marcy
\B Darnall of Florence, Ala. He testi-
Med that he had sent the editorial
matter, written by him, to newspapers
all over the country through an ar
rangement with the power company.
Darnall said the editorials were re-
prints from the Florence Herald, Of
which he is editor, and that the ar
rangement with the Alabama Power
Co. had been made in February, 1926.
While prior to that time his news
service had circulated the editorials
to about 200 newspapers. He said
that 1t was now going to about 200 ad-
ditional papers at an expense OF $500
a month to the power company.
Guy P. Newburn, a publicity man for
utility interests at Nashville, Tenn, was
named by Darnall as having first sug-
gested that the power company might
be interested in paying to have the
editorials circulated. This later led to
discussions with Mr. Jackson and
Mr.. Baldwin of the Alabama Power Co.
Ito buy copies of the service for dis
tribution to list which l supply
myself"
SuppOsed Government Ownership
Darnall said that he opposed all
Government ownership and operation,
because he had felt pressure from such
competition in his own business. Copies
of matter advertising his service and
numerous issues of the editorial page
were introduced into evidence by Rob-
ert E. Healy, commission counsel, ex-
aiming Darnall, Healy developed that
editors in many instances had taken
the nti-Government ownership oplr1-
ions and had used them as their own.
Prior to Darnalls appearance, Healy
entered into the record telegram
from Bruce Barton, the writer, in
denial of reports which he said had
been circulated to the effect that he
had been paid $4,000 "as a writer of
articles in praise of the electric light in
dustry.' The telegram also took cog
nizance of the introduction of a check
into evidence, which was explained by
witnesses as having been paid to Bar
ton for speaking at the 1925 conven-
ton of the National Electric Light As
ISOLATION in San Francisco.
THE commission, I am sure" Barton
wired, wants to be fair. This state
ment is false and should be corrected.
The advertising agency Of Barton,
Durstine & Osborn, of which I am
president, was employed in 1925 to pre-
pare certain advertising leaflets for
the N. E. L. A., using information
which I believed and still believe to
have been turthful and accurate. The
leaflets, which were not signed by me,
were partly prepared by me and partly
by members Of my organization. per-
fectly normal part of any days work
in any advertising agency"
Denies Payment for Speeches.
Barton said that he had never been
paid for an article except by the editor
of the magazine or newspaper publish
ing it and never would be. He added
that no payment had ever been received
for him for an industrial speech and
denied that he had attended the San
Francisco convention. He suggested
that the check introduced in evidence
regarding that incident probably had
been paid to railroad company for
his transportation to the convention,
even though he was not able to attend,
and that the money had subsequently
been refunded upon cancellation of the
tickets.
Bernard F. Weadock, counsel for the
Joint committee Of National Utility AS
sociatiorlS, secured permission from
Commissioner McCulloch for a sub
sequent hearing in the inquiry to give
the utilities interests an opportunity for
the presentation of material which
they consider will adequately repre-
sent the situation Weadock con-
tended that the mass of documents
introduced in connection with the in
quiry had made it impossible for the
country to get complete picture of
the situation.