Evening star., 1935-08-20

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were more important than Senators"
Immediately afterward Chairman
Black read to Hopson the statement,
approved unanimously by the COM
mittee, again warning him that ad-
ditional contempt charges would be
preferred against him if he contin-
ued to attempt to make statements in
answer TO questions.
Given Stern Warning.
The committee statement read:
This committee has been very pa
tient with the witness, H. C. Hopson.
1t has not yet pressed the charges Of
contempt which are pending before
the Senate. 1t has, during four ses-
sions, afforded him great latitude in
the answering Of its questions. The
committee is determined that it will
no longer permit the practice of this
witness of evading questions by max
ing speeches or criticism of the COM
mittee, or by asking ether questions,
or going far beyond the scope of the
question in the answer, and by con-
tinuing to talk after he is called to
order.
The committee is interested in
ascertaining facts on specific ques-
tions and intends to limit this wit
ness to answering questions with
facts. The witness, Hopson. is now
instructed that this rule must be
followed by him. His failure to do
so will necessarily result in the i'm
mediate presentation of additional
contempt charges to the Senate.
1T is hoped that no such action
will be necessary, but the attitude Of
the witness has made it necessary to
consider the question and the COM
mittee has unanimously reached the
conclusion that it will no longer toll
crate the conduct previously INDUCED
in by the witness. He is a lawyer
and knows how to confine himself to
facts, and he must do so or suffer
the consequence of citation to the
Senate"
Questioned by Schwellenbach.
After reading that statement Black
said it was not the desire of the COM
mittee Ito take such steps"
Senator Schwellenbach. then took
up the examination of the utilities
magnate, question him in detail about
the set-up of the Associated Gas &
Electric.
Much of Hopson's testimony along
that line followed closely information
he gave the House Rules Committee
last week. He did admit, however,
that he had exercised control over the
association until recent years. when
it passed dividends.
Hopson also explained that in addi-
ton to stockholders in various sections
of the country, whose votes his man
agement controlled through proxies,
there were other large shareholders
whose proxies the management could
not get. He mentioned specifically
Pierson g. Co. of Holland and the
Electrical Securities Co., an invest
ment trust.
Asked About Dividends.
Senator Schwellenbach later ques-
toned Hopson about the Associated's
securities, developing the fact that
cash dividends had not been paid on
various classes of it's stock as far back
as February /, 1881. Cash dividends
on the class A stock, Of which there
were 100000 shares outstanding,
were stopped on that date.
Hopson next was asked about a
$22. .000, 900 dividend paid to Associated
in 1929 by the Associated Securities
Co. and credited to earned income.
This dividend, it was developed, re-
suited from the sale of the class A
stock.
Schwellenbach wanted to know If
the profits from the sale Of stock were
included in circulars put out by the
Associated which listed its earned in
come. Hopson said that had never
been done.
Chairman Black then took up the
examination and inquired if the Fed
eral income taxes of the Associated's
numerous subsidiaries were paid to
the parent company and treated as
profit. The witness replied that
method always had been followed.