Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-18
Commission Solicitor Says
He Was So Directed to
Inform Accountant.
ACCOUNTING METHODS
BROUGHT UNDER FIRE
Russell Says Utilities Firms Listed
Lobby Fees as Construc-
ton Costs.


CriticiZing methods Of utilities COM
panies and F. e. Bonner, executive Sec
rotary of the Federal Power Commits
sion, Charles A. Russell, commission So
licitor, testified today before the Sen
ate interstate commerce committee that
he had been directed to tell William
v. King, commission accountant, to LAY
of the power companies" at a meeting
in which Bonner participated.
The commission solicitor said that
utilities companies included lobby
fees" as actual construction cost in ac-
counts presented to the commission.
Cites $4,000 Expenses.
He added that such an item of
$4,000 on the books Of the Byllesby
Co. in Minnesota and Wisconsin was in
cluded In their estimate of investments
Russell also asserted that he knew of
another application for a license in
Pennsylvania that included an item Of
S7O0, 900 in investment statements when
that figure represented lobby costs and
don't know what else.''
Shortly after he went to work for the
commission, Russell said Bonner sum-
moned him and complained that the
solicitor had been listening to" King.
the chief accountant and now he,
Bonner, wanted Russell to hear "the
power company'S side"
Russell added that he was then call
ed into conference with Bonner. Mai.
Glen Edgerton, chief engineer of the
commission. and NJ. o. Leighton.
Leighton, Russell said, claims to be
consulting engineer" but in reality
is employed by the Electric Bond e.
Share Co."
In that conference, Russell testified,
ne was directed to ask King. the &C.
countant, to LAY off," the power COM
panies.
"Details" Protested.
Leighton's complaint, Russell said.
was that King insisted upon being too
detailed" in accounts, such as reports
from the companies on expenditures
and assets, in connection with applica-
tons for licenses.
Leighton commended. Russell said,
that the power companies submitted
their reports and accounts under oath
and should be taken at face value"
What in reality happened at that
conference?" Senator Wheeler, Demo-
crat. Montana, asked.
He told me-" answered Russell,
"how to run the SOLICITORS Office"
Why does Leighton have to cover
up his connection" Wheeler inquired.
You'll have to ask him." Russell
answered.
Government Water Included.
Going into accounting methods, which,
he said. brought on controversy within
the commission, Russell said the
Niagara Power Co. In valuation Statis-
tics presented an item of about $50, 000.-
900 in its investment, when that figure
represented their estimate of the water
the Government gives them"
The hearing ended before Russell had
concluded his testimony. The Senate
committee will resume its investigation
Of the power commission tomorrow.
The committee had hardly begun it's
general investigation of the Power Com
missions activities before Chairman
CouZenS of the committee said the
commission kept confidential memo
randum and data on applications while
they were under consideration.
Senators Wheeler, Democrat, of Mon
tana; Dill Democrat, Of Washington,
and Wagner, Democrat, of New York,
Immediately attacked the practice.
What ! can't understand" Wagner
said. lis what there could be in any
application that could be of such char
acter the public should not know
about it."
Charles A. Russell, solicitor for the
commission, testified that F. Z. Bonner,
executive secretary, determines what Is
to be kept secret"
Declaring in answer to questions that
he was personally opposed to the policy,
Russell said: IT think every Govern
ment bureau in the United States ought
to be free and open to every one who
has an interest in it."
Couzens told other members of the
committee that in transmitting records
sought by the committee the commits
sion explained they were not for publ
cation. Senator Wheeler then objected
to what he said was 1.-The ban Of Sc
crecy."