The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-13
1901, 1865 Spent by Single
Group, Alleged Head
of Lobbyists Says.
SENATE SPEEDS INQUIRY
House to Seize Books of
Fashionable Hotel to
Bare Parties.
Pv United press

w AOI1I1NG1 OAN, July 10
Congressional lobby investi-
gators. who drew surprise tes-
timony of expenditure of
1901, 900 from the first utility
witness, believed today that
further investigation may
disclose a huge "slush fund"
The Senate investigating commits
tee, speeding to catch up with the
companion House inquiry, planned
further questioning of utility exec
utives after Philip H. Gadsden.
chairman of the alleged lobbying
group, had told of expenditure Of
1901 1856 by his organization in an
effort to defeat the Administration
utility holding company BILL
Senate Probe Surprises
The Senate committee gave indi.
cation it intends to push its inquiry
vigorously when it surprised obServ-
ers by delving into the investigation
less than "a hours after being named
by Vice President John N. Garner.
Senator Hugo L. Black Cd, Ala), a
former prosecuting attorney, heads
the group.
At the other end of the capitol,
Chairman John j. O'Connor of the
House Rules Committee was de-
termined to Guido the fast-moving
Senators by Selling the books of a
fashionable hotel in an effort to
show that utility representatives en-
tertained laviShly while conducting
their fight against the legislation.
The House group already has
heard charges that Administration
officials organized a powerful lobby"
in support of the controversial
measure.
Witnesses Good-Natured
Senator Black lost no time in
starting his $4,000 investigation.
Observers we're startled when he
ordered Mr.. Gadsden to the witness
chair a few minutes after the COM
mittee met.
The good-natured, gray-haired
witness obviously was unprepared
for the three hour bombardment.
He had no records of his part in the
holding company battle; no state
ment of total expenses incurred by
all members of his group; no knowl-
edge of how much was spent by
men and women who sent thou
sands of kilograms to Senators and
Representatives, urging them to
vote against the bill.
He admitted, however, that his
rganization-the Committee Of
Public Utility Executives-used ev-
cry effort to build up opposition
against the legislation. He submit
ted an accountants detailed report
OF expenditures of about 1901 900
from Feb. 18 to June 80.
Only Drop in Bucket
That report, which Senator Black
commended listed expenditures that
were only q drop in the bucket"
showed that 26 utility companies
contributed S152065 to aid the cam
paign. Attorneys fees amounted to
Sl5O,O0O, and general expenses, $751;
865.
whether measured in dollars or
IN time and effort, the expenditure
by your committee has been consid-
CRADLE Mr.. Gadsden said TODAY in a
public report to members of his
group. mo one regrets the neces-
sity for this more than your com.
mittee," he added.
The utility executive promised to
supply later a record of his per-
sonal expenses. He estimated they
amounted to about $500 a month";
S225 for a suite in an exclusive no.
tel, $3.50 for meals, tips and car fare
and the remainder for miscellaneous
items.
Everything Above Board"
He offered to cooperate "whoIe-
heartedly" in the inquiry. and said
ne would attempt to ascertain how
much was spent by each member OF
his committee. Everything that
was spent was open and above
board" he added.
Rep. O'Connor planned to sum-
mon Gadsden before the House
committee next week as soon as gov
eminent officials conclude their tes-
timony. The Senate groups pro-
gram. for today was uncertain, but
Senator Black said he expected
several others connected with the
Gadsden organization to appear on
Monday.
The utility holding company bill.
the death sentence" provision OF
which drew alleged lobbying activi-
ties, was in the hands of Senate and
House conferees. The Administers
ton will seek to retain the death
sentence" provisions contained in
the Senate bill but eliminated by
the House.