Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-19
Commission Secretary Sum-
moned After Attack on His
Methods by Accountant.
COUZENS WILL DEMAND
COMPLETE STATEMENT
Irregularities Charged to Firms.
Lobbying Fund Described
Before Senate Probers.
BY tke Associated Press.


r. E. Bonner, executive secretary of
the Federal Power Commission, today
was summoned to appear before the
Senate interstate commerce commit
tee tomorrow to answer charges against
him after Chairman Couzens Of the
committe had said he understood that
affairs in the commission showed one
Of the 'rottenest exhibitions of gov
eminent have ever heard Of"
Attacks on Bonner and methods used
by the utilities groups were continued
today in testimony before the commit
tee by William King, chief accountant
Of the commission, who reiterated
charges by Charles Russell, commits
sion solicitor, that power groups in
cluded lobbying expenses in valuations
and that Bonner favored the power in
terests." King also said that he knew
of many cases of "illegitimate expenses
and other irregularities in the COM
missions affairs.
Bonner Replies to Charges.
Bonner today issued a statement Ia
reply to Russells testimony, in which
he said that Russell did not know any
thing about the water power business
and that it was clear that his charges
| we're made either through Ignorance
or political or self-seeking motives"
! In summoning the secretary, Couzen:
announced that he would demand 9
complete statement" of irregularities
| including fictitious claims" of power
/ companies allowed in reports to tn:
! commission and "ineXcusable delays
/ over pending business.
/ The interstate commerce committee
began a general investigation OF the
power commission yesterday. The COM
mission is composed of the Secretaries
| of the Interior, War and Agriculture
| but King said today that Bonner, thu
commission secretary, virtually admin
istered the Federal water power act.
In his statement In reply to testimon!
by Russell, Bonner asserted the admin
1stration of the power act "as to 1T
main objective had been a singular sue
cess, largely through the arrangement
which requires its activities to be car.
ried out through the splendid technica
STATS of the war, Interior and Agri-
| culture Departments"
Tells of Lobby Fraud.
| Asked If he could make out q writer
statement regarding the irregularities
| King replied that it would be. quite
a task" because there have been Sc
many. and Sor many are In cases still
pending"
The accountant testified that o. C
Merrill, former secretary of the Power
Commission, had delayed numerous APP
plicationS for development permits be-
cause he believed court proceeding:
might be involved which might eventu-
ally go to the Supreme Court"
He amplif1ed his charges that money
| spent in an attempt to influence legis
lation was put down in valuation sum
maries, naming several power concerns
King said the Northern Connecticut
| Power Syndicate had submitted an item
of 81 .05C 900 as capital investment,
and that later the company refused Il
pay income taxes on that amount, or
the ground that 1t was fictitious" The
item, King charged, represented the
syndicate valuation of the vested right
the Government gave it for power
uses.'
The assertion by King that "illegiti.
mate" items of expense in power com.
panies' report included fees for lob
! bying" led members of the committee
, to inquire whether criminal proceed
ings could be brought against the COM
panies submitting false reports"
Senator Wheeler asserted that they
could.
Flynn Named as Lobbyist.
King named the Ell Dorado Power Co.
California, as including lobbying fees
as items of expense. He said he found
an item of $26,479 on their books.
| Investigation disclosed" he contin.
ued, that this was paid to D. T. Flynn
or the firm of Cummins, Roemer &
Flynn Chicago"
Further inquiry developed, King said
that the same firm received $137 $50 .0S
from the Bylesby interests, "for salaries
and expenses from January, 1917, tC
March 81" Flynn during this period
received $3.50, King testified, and the
work of the firm he charged was or
national legislation"
Senator Couzens asked King for fur.
Their information on fictitious claims. >
King repeated Russell'S charge that the
Niagara Power Co. included about 1872
100000 as vested right" estimate in
a valuation report.
| Going into the question of rate reg
ulation, Couzens asked what had been
done by the commission. When King
answered nothing" Couzens turned to
russell, who was present, and asked
him to explain why.
| Russell said the commission now has
authority to regulate rates where no
| State commission does, but that it
could never accomplish anything even
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