Evening star., 1934-04-12
ENGINEER LINKED
TO PUBLIC UTILITY
Trade Commission Official
Says Cheney Was Part
of Associated System.

JuOSOu ~. OlChcIuldIl, T IcuCldI 4lduC
Commission engineer. testified today
that Edward j. Cheney, commonly
understood" to be an independent
engineer. has been since 1921 part
and parcel of the Associated Gas
& Electric system.
He made this statement in the
commissions utilities inquiry.
In a summary of his examination
on the South Carolina Electric & Gas
properties of the Associated Gas &
Electric system, read into the record
of the Trade Commission, Dicker-
man said:
while it has been commonly under
stood that Edward J. Cheney, upon
whose appraisal the book accounts were
adjusted, operated as an independent
consulting engineer. photostats Of
agreements. between Edward j.
Cheney and H. c. Hopson ASSOCIATED
vice president), resolutions passed by
organizations bearing the name of
H. c. Hopson, and correspondence
signed by H. c. Hopson and his
known employees indicate that
beginning on January II, 1921, and
continuing at least to July 9, 1882,
the business financial affairs of Ed
ward j. Cheney were absolutely under
the control Of H. c. Hopson and his
nominees =
Hurley Reads Statement.
"In other words, Edward j. Cheney,
engineer, has been since 1921 part
and parcel of H. c. Hopson's organi-
cations devoted to the control of the
Associated Gas &, Electric system and
allied properties and organizations"
After Robert E. Healy, commission
counsel, had introduced Dickerman's
summary, Patrick Hurley, associated
counsel, who was Secretary of War
in the Hoover cabinet, read into the
record a statement protesting against
"the examiners attempt to discredit
Mr.. Cheney's valuation (referring to
appraisals of associated companies)
by reference to a financial arrange
ment between Mr.. Cheney and Mr.
Hopson
That arrangement" Hurley said,
"was entered into long before Mr..
Hopson had any interest in the Asso-
ciated Gas g. Electric Co. or any
other utility. 1t was made originally
for the purpose of financing an
independent engineering business
which Mr.. Cheney was about to un-
dertake and providing him with funds
for that purpose"
Cheney maintains Offices as an
Independent consulting engineer at
81 Broadway, New York. which also
Is the address of Associated Gas.
Spread on the records of the COM
mission are the names of IL New York
State legislators, some of whom are
pictured in the commissions data as
favorably inclined toward legislation
acceptable to the Associated Gas g.
Electric Co.
Letters made public by the COM
mission purport to show that State
Senator w. T. Thayer and other New
York State legislators helped defeat
anti-utilities bills, by company re-
quest. A sweeping inquiry into the
whole utilities question was begun at
Albany today by direction of the State
Legislature.
Utilities Unit Set Up.
The records in the case of Kentucky
concern purported Office memoranda
in 1928 from H. D. Fitch, president of
Kentucky Tennessee Light & Power
Co., an associated subsidiary, to S. j.
Nagee, Associated vice president. In
the exchange Fitch said that a reso-
luton Of the Kentucky Legislature for
a utilities inquiry had been written
for the benefit of the utilities.
Kentucky, at its recently completed
session, set up a utilities commission,
and prospects for such a commission
back in 1928 were the subject of
Fitch's memoranda. He said that the
commission idea had been killed be-
fore by charging that it was undemo-
cratic.
He added in the private memoranda
that this was a rather "fishy" asser-
ton.
The Trade Commission turned its
inquiry today into the financial activi-
ties OF the Broad River Power Co. of
South Carolina, another Associated
subsidiary, and other affiliated COM
panies. There was no indication of
the content Of the expected testimony.
The New York Legislature case,
now under investigation in that State,
continued to cause much comment.
Besides Thayer and Assemblyman
D. Mallory Stephens, the New York
letters also involved State Senators
w. w. Westall and H. D. williams,
and Assemblyman Willis H. Sargent
In Thayer's alleged activities in getting
bills killed or amended.