Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-10-03
TRADE BODY HEARS
LETTERS At PROBE
Close Cooperation of Con.
ference With Utilities
Groups Indicated.
BY the Associated Press.

BY the Associated Press
Correspondence between J. A. Switzer
of Knoxville, Tenn. secretary of the
Southern Appalachian Power Confer
! ference. and w. j Baldwin of the Ala
bama Power Co.. Birmingham. Ala. in
PRODUCED today in the Federal Trade
Commissions investigation of power
/ utilities. indicated a close cooperation
between the conference and utilities
groups in the South
Writing to Baldwin on August IS
1927, Swltzer said politician to whom
he had shown the printed proceedings
of the two previous conference meetings
had remarked that nearly all of your
members are representatives of power
companies"
This gentleman was somewhat mis-.
taken" wrote Switzer, but it is true
nevertheless that large portion OF
those interested in our organization
are power people" Switzer's letter was
in connection with arrangements foI
the 1927 convention, and he suggested
that attendance from the power COM
panies should be supplemented as much
as possible.
He inclosed to Baldwin a copy Of the
tentative program and proposed "for
the power companies to use their in
fiuence with the larger power users on
their several systems to attend this
meeting"
Switzer informed Baldwin that Presi-
dent Coolidge had been invited by let
ter to attend the convention, and that
the invitation would be supplemented
by the mayor and the Chamber of Com
merce of Chattanooga. Il don't sup
pose there is much chance of our bag
ging any such big game" he added.
but there is no harm In making the
effort"
Ignorant of Affairs.
Edward Y. Chaplin, conference treas
urer, and president of the American
Trust & Banking Co. of CHATTANOOGA.
Tenn. testified that he knew nothing
OF the conference affairs prior to his
taking Office less than year ago. He
submitted recent financial accounts of
the organization, which were reviewed
in part for the record by Robert E.
Healy, commission counsel.
Other witnesses were Thordike Sa-
vile of Chapel Hill. N. c., former con-
ference treasurer and a member of the
University of North Carolina faculty,
and j. A. Switzer of Knoxville, Tenn,
conference secretary and member of
the University of Tennessee faculty.
Saville testified that the organiza-
ton was originally sponsored by geologic
cal surveys of various Southern States
and that subsequently power companies
had become interested in its work and
had helped to support it financially. He
denied that the conference had gone
on record in opposition to Governm, Mt
operation of power utilities saying that
he could recall no instance of such &C.
ton. Records of the 1927 convention
disclosed, however. that resolutions in
opposition to Government operation of
utilities and of the Muscle Shoals prof.
ect especially had been adopted.
Illness prevented the appearance of
DR.. Joseph Hyde Pratt, also of Chapel
Hill, chairman of the conference
executive committee, but exhibits upon
which he was expected to testify were
introduced for the record.
Chaplin testified that approximately
1900 had been paid to DR.. Pratt
within the last year for services and
expenses and he promised to submit
vouchers showing in detail for what
purpose the payments were made. He
warded $500 to him through DR..
Pratt early last August, which he un-
derstood was intended as an advance
payment on expenses for convention.
Denies Payments Made.
Questioned by fIealy, he denied
knowledge of payment by the con.
ference to a legislative representative
OF the Alabama Power Co. in WASH
lngton of 5000 in the Fall of 1927. He
likewise denied knowledge of any pay
ment being made to the conference by
the Chattanooga Chamber of Com
merce.
3. Chaplin was followed on the stand by
Saville, who said that power companies
in the South had financed about so per
cent OF the conference expenses be-
tween 1924 and 1925. Prior to then,
negligible. He said that the conference
had been formed originally by State
geological surveys and that the subse-
quent interest manifested in it by the
power companies had led to financial
contributions by them. The contribu-
lions were estimated to average be-
tween 500 and 5000.
Saville said that, to his knowledge,
the power companies had never taken
part in the formulation of the confer
er1ce convention program and he could
not recall any action by the conference
in opposition to Government participa-
ton in the power business. When
Switzer took the stand. however, Healy
disclosed through the record of 1927
convention that resolutions had been
adopted in opposition to Government
operation Of utilities and especially the
Muscle Shoals project. The record
showed that Saville had been a member
of the resolutions committee.
Tells About Publicity.
Details of publicity arrangements for
the convention were brought up by
Healy, who developed that j. r,
Hornaday had been retained to do
publicity work through an arrangement
between DIR. Pratt and w. j. Baldwin
and G. Beasley, both of the Alabama
Power Co. SWitZer said DR.. Pratt had
told him that Hornaday was not en-
plOyed by the conference and that a
$500 check made out to him was in the
nature of IAN advance"
Other checks for payments to Norma
day were entered on the financial rec
ords of the conference, but Switzer said
he had not known either of these or of
any payment to DR.. Pratt by the con-
ference before today. Examination of
SWitzer revealed that he had published
several articles in opposition to Govern
nent operation of water-power projects,
and that he had appeared before con-
gressional committees in regard to dis
position of Muscle Shoals
He said some of his articles had been
examined by Baldwin and Beasley for
criticism" before publication, but that
this was done only to assure accuracy
in the use of statistics involving the
output of the Alabama Power Co. He
said he had also conferred with Baldwin
and Beasley regarding the speakers be-
fore the 1927 convention.
They approved your views, did they
not?" asked Healy
They did," Switzer replied.