Evening star., 1928-06-21
SHERIDAN ADMITS
FALSE A.P. CHARGE
Missouri Utilities Man Says
He Had No Authority to Say
Stories Were Ordered.

BY the Associated Press.
A public utilities press agent who
made q false statement about the AS.
Sociated Press in Al letter. apparently
with the idea OF impreSsing his aSso-
ciates today had TO admit on the wit
ness stand before the Federal Trade
Commission investigation of utility
financing that the statement was fig
ment of his own imagination.
J. B. Sheridan. who was shown yes
terday to have severely condemned busi-
ness methods of his public service en-
ployers while being paid by them as
director of the Missouri committee OF:
public utility information. admitted
that he had no authority for a state
rnent he made to J. S. S. Richardson,
on Nav Is, 1923. that word has gone
down from headquarters" of the Asso-
ciated Press Ito take care OF the COM
raittees or public utility information.
Had No Authority"
sI only had an idea" Sheridan
fenced when Robert E. Healy, chief
counsel for the commission, asked him
on what authority he based the state
r,ent. Il had no authority.
Richardson at that time was head
of the Pennsylvania utilities publicity
committee and now is publicity olrec,
tor for the Joint committee for Nauonai
Utility Associations.
Sheridan testified that when any OF
his information was carried oy the
Associated Press 1t was because II mac
a news value, and his letter 10 Rich
arsson said only that canoer OF HioI-
nation was submitted
The letter was written to Richardson
shortly after he had become director
If the PENNSYLVANIA bureau, and said
that "the Associated Press viii prove
Invaluable 10 YOU. think that word
has gone down from headquarters 70
take care of the committees on pubic
utility information. In any event the
local managers are very warm TO pup
lie utility information. OF course, this
is a great advantage. and we 90 not
uress it too strong in Missouri. We
avoid asking them TO distribute any
thing except real story.
Wrote to Texan.
A letter Sheridan wrote to the late
George McQuaid March 90, 1925, also
contained statements calculated TO I'M
press the Texan. 1t said: The Asso-
ciated Press sends out practically every
thing we give them. They nave 50
newspapers in Missouri. We get matter
printed in from to 25 newspapers on
one story. Out Of the S5 we VIII aver
age about 13 newspapers printing stories
sent out by the Associated Press.
How does this average strike your
Does it correspond with your average
In Texas?"
Interrogated by Healy. Sheridan de-
ciared he considered that the matter
sent by his organization TO the press
association contained enough news to
Justify the Associated Press in carrying
the story"
Sheridan testified that he mailed the
matter to Kenneth Clark. st. Louis cor
respondent Of the Associated Press, at
infrecuent Intervals up until 1925. but
that since then he mailed 1t weekly.
Tells Of Rail Deal
Things were lively in this State
Until February. 1927. Then an un-
popular railway company demands q
huge valuation and increase OF rates.
Another company gets thirteen million
dollars added 70 its value and publicly
promises not 70 ask for increase OF
rates. Three months later this COM
uzny petitions for readjustment OF
rates, which in effect increases slight
~ the rates Of 155.o00 Of zoo, 600 Gus
TONERS. Then the controlling group
sells out with q profit of from $4,000
900 TO sl4.OO0. 900 on so per cent OF
the small issue Of common stock.
Huge profits for the bankers IN
crease rates for customers.
This was an ideal State for public
utilities. What it win be in the future
do not assume 10 forecast. No doubt
90 per cent Of the business in the
EtsM is honest and rates correct. But
the 10 per cent smears the 80 per cent.
Urges Honesty,
1.-TWO years ago In ChicAko, Davis and
! asked that the industry declare itself
On speculation. The hired publicity
men had fit. They'd lose their pre-
clous jobs. A year later Jim Davidson
did say something against speculation
before the Electrical Board Of Trade.
st. Louis, but when asked him TO
repeat for publication he declined;
Aylesworth said something. Sam insult
said something about it, but no one
drove II home.
"Unless the industry is honest and on
the level II will kill itself Ninety per
cent Of II is honest enough 1t must
be 100 per cent honest. And 1t must
come 70 recognize that public utilities
are not private dice or playing cards.
or chips IN a poker game, but public
trusts TO be administered carefully,
cautiously, economically, with the tn
feyest of investors in fixed securities
and public. which are identical, coming
before profits on common stock or upon
imitation Of securities.
whats the remedy2 Why, hang the
offenders high as Hamon upon the
gibbet Of publicity. Tell the world what
they are doing. Admit your own sins
and repent
Most people Will say that I am a
damned fool for this. but don't be-
beTe that you will"
Writes Of Rates.
More AZ Sheridan's personal thoughts
of the utility business were disclosed III
q letter introduced into the record arlc
identified oy the witness as having beer
written by him. but never sent u
Tnorne Browne Of Lincoln, Eebr.. sec
retary Of the Midwest division Of tf1t
National Electric Light Association,
The letter was marked personal ard
confidential, and said:
Il don't know that I can help vol
very much. What can We DO when tni
6nauciers viii initiate, overcapitalsze, sci
securities based on blue sky or hot ali
and rates must be kept up 20 pay re-
turns on said blue sky and hot air2
THE best public relations stuff in ths
world Is nice little reduction Of rates
do we get it2 We DO not. know
places where believe i3-cent top rat,
should be Q cents.
"A municipality owned plant, city oi
1000. pays all Indebtedness on plan
without recourse 10 tax funds, light
white ways, streets. etc, without gettine
money therefore. but 1T is charged or
the books and has a top rate Of 1
cents per kiIowatt hour, cents fol
noWeY b SO miles away from A