The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1929-04-29
power BARON
ACQUIRES q
PAPERS
BY M. L. RAMSAY
Universal Service

The Federal Trade Commission is
rounding out an investigation Of the
purchase of score OF newspapers
by Col. Ira c. Copley, who has 9
81. 900 900 interest in electric power
and gas utilities, 1t was learned yes
terday.
Inquiring into charges that Copley
Is developiIlR "a newspaper adjunct
to the electric light and power mo-
nopoly." the commission has traced
out his acquisition Of 81 papers in
Illinois and California in the last IS
months.
Replies to Inquiry
Purchase of the Long Beach
(Calif.) Sun, and consummatio of
q 82,OOO,OOO deal for taking over the
F. w. Kellogg chain of Is California
steps in the Copley expansion pro-
O'Laughlin, Of Los Angeles, vice
president of the Copley Press.
O'Laughlin's statement was made
In letter replying to/a commission
inquiry made short time ago.
6CVG4AA ROAHAS vi GO4AbaGt pCIWECh
Copley utility and newspaper deals
and the insult power interests CT
Chicago. disclosed In documentary
and other evidence gathered oy the
commission, are under investigation.
When Gopley gave up active man.
agement Of the Western United Gas
and Electric Company and two other
Illinois utilities more than two years
a~aa - tAA
insult interests Copley turned ever
and stock in the new insult corpora.
tons which replaced his. These are
the securities whose value was esti.
mated at $5,000,000.
Admits Smith Gift
Copley has admitted a $4,000
secret campaign gift to Frank L.
Smith, Of Illinois, whom the Senate
refused to seat The commissions
record shows shat part of this gift
was made soon after the Illinois
Commerce Commission. Of which
Smith then was chairman, had APP
proved steps toward consolidation
of Copley's utility properties. The
consolidation preceded the passing
of control to financial interests
which later sold to insult
Samuel insult gave $125,000 to
the same campaign fund for Smith,
and Clement Studebaker. another
utility executive, $4,000.
y The commission has learned also
that W. W. Armstrong and Com.
pany, Aurora, ILL.,. investment hank
ers who bought out a $S,2o0,o90
bond issue tor Copley to help
liz ~ he
Diego Union. the San Diego Tribune
and other properties, handled insult
financing as well.
The Armstrong firm. according to
the records, was a regional dis.
tributor for the utilities securities
company, the insult securities mar.
keting organization.
B. P. Alschuier. of Aurora, Copley's
personal attorney for 25 years.
has served since the utilities changed
hands as attorney for Copley and
counsel for the insult Utility proper
ties Copley formerly controlled. Al
schuler also is a vice president and
director Of these properties. the
records show.
Copley's aides have denied that
he acted for any one else in his
newspaper purchases, or that any
power corporation funds were used.
Records which are available show
that a large part of his bond issue
was sold to a number of Illinois
banks, which were supposed to have
passed them along to investors.
The ultimate purchasers were not
identified,
Special interest was attached to
the Copley acquisitions due to their
proximity to the big backgrounds
in the power interests fight
against public ownership of utili-
ties. The Illinois State Journal
the first taken over, is published
at Springfield. which has publicly
owned plants valued at $4,000, 900
The others are all in California
where for some years the power
interests have waged their greatest
fight against municipal State and
Federal enterprises involving devel
opment and distribution Of electric
power
While managing his former
utility properties, Copley had three
newspapers in Aurora. Joliet and
Elgin, ILL.,, which he has retained
@an~