Evening star., 1933-05-26

| ion in the management of these COM
| panies?" asked Senator Barkley.
Everything is harmonious"
Howard then divulged the informa-
ton that companies in which the
United has an interest do % per cent
of the Nations gas and electric busi-
ness, on an output basis. Pecora placed
in the record statistics showing the
than 50,O00 900 of population.
How large is your own office staff?'
Pecora asked
"A secretary, Office boy and Mr.. Fer
guson," Howard replied
Pecora and Howard enumerated the
| corporations In which the United holds
| stocks and the shares held. Couzens
also obtained the percentages of the
total.
What do you mean by large inf1u-
ence-I think you said you had large
| influence in many of these concerns as
! distinguished from complete legal con-
trol?" Howard was asked.
Howard answered that since the hold
ing company left the operations Of Its
subsidiaries free in most cases and
that it did not hold a controlling
amount of stock that it was evident 1t
did not have complete control.
He said, however, the holding COM
panv participated in discussions of pol
Icy and that it naturally was listened
to-"
Your advice is usually followed?"
Senator Costigan asked.
In some cases"
MANY of the companies in which
your corporation holds stock are known
as Morgan companies, are they not?"
Couzens inquired.
Yes"
Then followed a discussion about q
map purporting to show sections in
which the United Corporation Power
affiliates operate.
Howard said he had never seen it, and
Whitney also added he failed to recog-
nize 1t.
Pecora said it came from Morgan 4
Co. and was procured there by his In
vestigators.
Members of the Committee slumped
back in their chairs while Pecora queS-
toned Howard about details of the
United Corporation.
Showing the map Of the Eastern
United States, with various areas OF
the states colored, Pecora asked what
percentage of the electrical output in
these Eastern states do these United
companies SUPPLY"
Howard elaborated that companies
in which United has a large interest
supplied from % to % per cent of the
central stations electrical energy in
the country" He said this did not in
clude the Electric Bond and Share Co.
"On gas, it Is about % per cent" he
said.
55,272,0O Served.
He was unable to give the population
served. but PecOra presented photo-
stat from Morgan and Co, dated Sep
tember 20. 1929. and putting the pop.
uIation served at 55,272,000 distributed
in New York, New Jersey, Connecticut,
Pennsylvania, Delaware, Ohio, Mlchl-
gan, Illinois, Tennessee, Mississippi.
Alabama and Georgia.
Have you had a survey made since|'
Pecora asked.
AT some time I asked some one in
Bonbright g. Co. to make tabulatlon.
but I don't know where it Is" Howard
said
Was no one in the United Corpora
ton competent to make such survey
Really, there is not. We have no
engineers"
Pecora brought out that of the
Uniteds IL directors, three-Harold
Stanley, George Whitney and Edward
Hopkinson-were Morgan partners. and
| two were members Of Bonbright & Co.
How many are quorum OF d.
rectors?"
-Four"
How many stockholders"
twenty-five per cent"
1t had been majority, the witness
| said, but the bylaws were changed Ito
| make it easier to get quorum"
rs J. E. Zimmerman on the board
of directors of United Corporation?"
| Howard nodded and said other d.
rectorship and Offices in utilities COM