The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-06-29
HOLDING FIRMS
REVENUE liked
BY FIGUREHEADS
Plymouth Man Asserts He
Turned Over All His
Presidents Pay.
CUTHBERTS0N 'PRIES'
Public Service Commission
Delves Into Records of
Goodrich Deals.
BY DANIEL M. KIDNEY

How salaries from local telephone
companies were pyramided by pay
ments to more or less figurehead
officials to make revenues for the
holding company was exposed dra-
matically today before the public
service commission.
The event was the investigation
Of the former Goodrich telephone
properties, recently sold to the
United Corporation, Albolene, Kan,
for 100000.
Questioning Of witnesses covered
the period from June l, 1880, to
June l, 1881, when the properties
were owned by former Governor
James P. Goodrich and the holding
company headed by his son, Pierre
T. Goodrich.
Opposed Authority.
Investigation was launched by a
commission order written by Com
missioner Harry K. Cuthbertson. AS
state senator, Cuthbertson opposed
increasing power of the public
service commission ever held
companies on the ground that they
can get all data now if willing to
do so.
Conducting his case today. Cuth-
bertson proceeded to stress his
point by prying into affairs of the
thirteen operating companies, Inter-
communications, Inc, which handled
tolls, and the Interstate Telephone
and Telegraph Company, the hold
Ing company which collected the SAL
airy checks among other revenues.
First witness was Sam TomlinSon,
Plymouth, who couldn't remember
his position with some of the COM
panies nor the salary received. Rec
ords disclosed that he was presi-
dent OF most of the companies in
volved in the inquiry at salary of
500 a month, paid to the holding
company instead of to himself.
Conducted Similarly
The secretary and treasureship
similarly was conducted, $75
monthly check usually being turned
over to the holding company, it
was shown.
One of the most fragrant ex-
amples of the holding company
system Of building business by
bookkeeping was shown when a re-
port to the public service commits
sion was introduced, bearing Tom
linson's name as president of the
Newton and Benton County Tele-
phone Company, and the auditor
testified the 500 monthly salary
check had been made payable to
P. F. Goodrich.
AS with other companies, how
ever, all the checks were turned over
to the Interstate Holding company
Among them was a $500 monthly
check for Tomlinson as president OF
the REORGANIZATION company
After all his presidential salary
checks had been grabbed up by the
holding company, he then was given
a $500 monthly check from the In
terstate, he testified.
Uncertain About Time
Tomlinson was uncertain about
the time given In service to the
various companies from which his
presidential salary checks came, but
outlined his service for the Inter
communications company for which
the $500 check was made out
monthly for him to sign and turn
over to the Interstate.
Added to those companies he
could remember having been presi-
dent of, to the records introduced
upon Cuthbertson's order by j. L.
Yarian, Warsaw, who was auditor
for the organization during the
period, Tomlinson was president at
500 a month of the following:
Winona Telephone Company,
Starke County Telephone Com
pany, Pulaski County Telephone
Company and st. Joseph County
Telephone Company.
In addition to the controversial
presidency of the Newton and
Benton county company, P. F.
Goodrich was president of these:
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pany at SITS a month, Whitley
County Telephone Company at SITS,
and Jay County Telephone Com
pany at $3.50.
Listed as Secretary
I. w. Frost was listed as Oecretary
of all operating companies at salar-
les from the usual SIS to 500 for
Jay and Central Lake telephone
companies, and 5000 for johnson
County Telephone Company.
Francis Dunn, Indianapolis, was
down for 500 a month as secretary
treasurer of the Intercommunica-
tons Company. E. Q. Frazier was
500 monthly president of Central
Lake and SITS for KosciuSky Coun-
ty Telephone Company.
But all checks went to the hold
ing company, with no exceptions to
the rule, it was shown.
The case will continue this after
noon and probably Tuesday.