The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1928-06-28
Democratic Nominee for
Senate on Pay Roll
in 1922.
FIGHT TO FIX LAWS
John MeIIett Tells ProberS
How Teachers Accepted
Propaganda.
BIZ Times Special


WASHINGTON, June 2s.-Albert
Stump, Of indianapolis, Demo-
cratic nominee for the United
States Senate was paid more than
$1,000 in 1921 and 1922 to make
speeches in behalf of Indiana public
utilities, it was disclosed today when
the Federal Trade commissions
probe of the power industry was
directed to Indiana activities.
John G. Mellett, former executive
secretary of the Indiana Public
Utility Association, identified rec
ords showing that Stump had been
paid $165.69 in 1921 and $1,116.51 in
1922, for services and expenses"
when he was being questioned by
Judge Robert E.. Healy, chief coun-
sci for the commission.
What we're the services and ex-
penses?" Judge Healy asked.
He made talks before Rotary and
Kiwanis clubs and business organi-
cations of various kinds" Mellett
replied.
"At how much q talk2"
Il think $25."
Were speeches delivered before
clubs other than Rotary and XII
wants clubs?"
Addressed WOmen's Clubs
II think, perhaps, he addressed a
woman's club or two and such or
ganizations they call open Fo-
runs"
WAS he billed or known as a
speaker paid by the utilities?"
Absolutely he was"
"In every instance?"
eyes"
Expenditures of Indiana utilities
to influence State legislation were
disclosed by Mellett, who verified
payments totaling $15,900 to lobby
lists and checks for 81 $50 to obtain
copies of bills. Mellett is a former
utility publicity man.
Mellett, former newspaper man
and teacher, was hazy about the
exact purpose to which the money
was put but admitted it was all
used in connection with legislative
matters.
Most of the money went to w. @.
Frazee, Rushville, who is registered
as utilities lobbyist in the State
house Of Indiana. Copies Of all bills
introduced were supplied by H. c.
Adams, Indianapolis.
Educator Was Paid
G.. L. Kirk of the Citizens Gas
Company, Indianapolis, was paid
$500 for Legislative work
Bills in which the utilities were
interested included proposals to
equalize the valuation of utilities
for taxation and rate fixing pur.
poses; to abolish the public service
commission, and to permit cities to
construct municipal plants without
regard to existing utilities.
Mellett testified to payment OF
1889 to Dean Ralph Heilman Of
the School of Commerce of North
western University, for making thres
speeches in Indiara. Two of the
speeches which dealth with Gov
ernment in business" were delivered
before teachers associations, and
the third was at Indiana University
Frank o. Cuppy, Lafayette utili-
ties man, was paid $2;500, also for
Legislative work." Mellett said He
could not say whether the money
was for salary or expenses.
William P. Evans, indianapolis
lawyer, was paid $28 for making a
speech.
Traction Companies Bill
At the outset of the hearing uues-
toned, Mellett was question closely
concerning an item of $5,270 paid
by the association to Frazee in 1928.
Mellett said he thought the money
had been paid to Frazee by Charles
Perry, now dead, former official of
the indianapolis Light and Heat
Company, who in 1923 was treasurer
Of the association.
Financial statements introduced
into the record by Mellett showed
that Frazee had received 1926 from
the association in 1925 and $500
in the first nine months of 1927.
These payments swelled the total
Frazee received during the last
three sessions of the Legislature to
$12,O56.
'The traction companies, which
were trying to make some money.
did not like the idea and did not
think the tax assessment should be
as high as the rate assessment" Mel
lett said. The bill was defeated, he
said.
Propaganda in Schools
Disbursements by the association
averaged more than $4,000 an
nually during the past three years,
records submitted by Mellett showed.
These expenditures were contributed
by various public utilities of the
State.
Pamphlets on various utility sub
jects prepared by various branches
Of the National Electric Light As
ISOLATION were distributed by the
Indiana association to 210 high
schools of the State, Mellett said
Mellett said he mailed copies Of
the bulletins to high school prin-
cipals and asked them whether
their professors on physics or other
sciences desired copies.
I'VE received requests from about
one-third Of the schools usually. I"
Mellett said.