Evening star., 1935-07-31
Senators Send Subpoena to
New York for HopSon,
Missing Witness.
HOUSE GROUP UNABLE
TO LOCATE SELLERS
Patton Exonerated by Cox After
Giving Details Of Financial
Dealings.
By the Associated Press.

ate Lobby Committee today by a New
York State investigator that the As
sociated Gas g. Electric system dur
ing the depression charged its oper-
ating subsidiaries 800 per cent above
cost for engineering services.
Earlier the committee transmitted
a subpoena for H. C. Hopson, missing
head of the concern, to the United
States marshal at New York.
simultaneously the House Rules
Committee-also investigating lobby
ing in connection with the utilities
bill-made known that it had been
unable to locate E. v. Sellers, N. r. A.
employe who expressed doubt that a
box taken by Representative Patton,
Democrat. Of Texas. from the hotel
room of John w. Carpenter, president
Of the Texas Power g. Light Co., con-
tained cigars.
c. H Tavenner, committee investi-
gator said Sellers is still on the N.
R. A. pay roll, but that at the Offices
there they were rather evasive. They
told me he might be back in . few
NNyo' AMY AAANLStOOA Az 10 dNn1
on little trip
Patton was on the stand before
Tavenner testified and went into de-
tails as to his financial status when
he bought the bonds that have figured
previously in the testimony.
Patton told the committee that he
had approximately $4,000 left for liv-
ing expenses after buying four bonds
for $1,000 early this year.
Recently, before the Senate Lobb
Committee, he said his salary as a
member Of Congress during this pc
riod was $3,1O0. Today he said he had
funds in addition to his salary.
Cox Exonerates Patton.
At the conclusion of his testimonj
Representative Cox, Democrat, ol
Georgia said:
The fact is you have been done a
very great wrong"
Il think So" Patton replied.
II hope" Cox added. "the pres
will take the pains to make it cleal
that your explanation before this COM
mittee is a clear exoneration of any
implication as result Of testimony
before the Senate committee"
Steuart c. Ross, accountant for the
New York Utilities Committee, testi-
fed that the w. s. Barstow & Co.,
wholly owned by the system. charged
operating subsidiaries $3.50, 900 from
l929-1933 for services that cost ST.
234, 900.
That's a profit of 800 per cent
isn't it?" Chairman Black asked.
Il can agree with that statement,
Ross replied.
Earlier Senator Schwellenbach.
Democrat. Of Washington. placed in
the record figures from the Federal
Trade Commission that the predeces-
sor of the Barstow company charged
81 ,343 900 from 1877 to 1929 for serv-
ices that cost $l45,000
Ross emphasized that these fees
were charged against the fixed capital
account Of the operating companies
so they became part of the rate base.
He described this system as "pretty
slick"
Denied Access to Records.
He testified also that the New York
Public Service Commission had been
denied access to the records Of the
Barstow company to determine
whether the charges were proper.
He told the committee the Utility
Management Corp, another wholly
owned subsidiary, received SIC, ,192, 900
during the four years from 1930-1933
for services that cost s4,329. 900.
Summarizing his figures. he saio
the operating companies had provided
profits of more than $40 900 900 to the
service companies in addition to
81, 1905, 900 made by the private com
pany owned by Hopson.
During much Of this time, pre-
vious testimony has shown, the sys-
tenn has not been paying dividends on
many of its securities, including pre-
ferred stock issues.
Ross testified that the arrangement
prevented regulating companies from
controlling the profits of the system.
Representative Chandler, Democrat,
OF Tennessee, told the House commit
tee of receiving large number Of tel
egrams opposing the utility bill which
he said came from q 5-and-lo-cent
store in Memphis.
CHARGES Approved" Wires.
He said an investigation disclosed
that the kilograms were approved by
the Memphis Power & Light Co. be-
fore they were sent.
He said as the messages began to
arrive, he noticed similarities in hand
writing and decided to lay them aside.
When received so many tele-
grams-s, 900 or 10,000--if was evident
to me these messages did not repre-
sent the attitude of the people I rep
resent" he testified.
THE telegrams were in such Ian
guage that it was very easy to see
they were not written by the girls in
the store" he amplified.
The committee questioned Garnett
s. Claypool, lawyer, who said he rep
resented the Ohio Fuel Gas Co. and
Southern Ohio Electric Co. against
the death sentence in the utility bill"
He denied entertaining members Of
Congress, but said he contacted prob
able about a half or o dozen Ohio
House members, using every srgu-
ment I could think of against the leg
islation."
Concurrently the Senate Lobby
Committee was charged by counsel for
the Associated Gas d Electric System
of asking trick questions designed to
create a wrong impression"
The accusation was made by Moul-
trie Hit, Washington attorney for the
system.
Hit asserted the Senate COMMITTEES