Evening star., 1935-07-12
S3DD,00O EXPENDED
IN UTILITIES FIGHT,
PROBERS ARE TOLD
P. H. GadSden, Represent
ing Opponents, Gives Tes-
timony at Lobby Inquiry.
SENATE GROUP SWINGS
INTO ACTION QUICKLY
19 Holding Companies Organized
in Capital to Oppose
Legislation.
BY the Associated Press.

Evidence that more than 100000
had been spent by public utility exec
utives in an effort to defeat the provi-
sion in the utilities bill to abolish ''un-
necessary" holding companies in seven
years was received today by the Senate
Lobby Committee.
1t came from Philip H. Gadsden of
Philadelphia, chairman of a commit
tee of public utilities executives, formed
to oppose the abolition clause.
Organize Quickly.
The Senate committee named to in
vestigate lobbying in general took but
five minutes to organize and then
plunged Immediately into the inquiry
on lobbying for and against the utili-
ties bill.
BY an assessment of one-half cent
meter on the companies, Gadsden
said, the Committee of Executives
raised about 100000, of which $751;
O00 has been spent
In addition, he related, the Edison
Electric Institute of New York con-
tributed S150,000.
OF this, he said, $4,000 each was
paid to two law firms, Sullivan &
Cromwell and Simpson. Thacher &
Bartlett, both of New York.
T. Justin Moore of Richmond also
was employed, but Gadsden said his
compensation had not been determined
by the utility executives.
House Prepares for Probe.
Meanwhile, the House Rules Com
mittee prepared to resume next Mon
day its investigation of lobbying for
and against the utilities bill. Utilities
officials are to be called next. follow
ing questioning of Thomas Corcoran,
r. F. c. official
Gadsden told the Senate group of
organizing holding company officials
last February for the purpose of fight
ing the abolition clause. Nineteen
holding company groups, he said. COM
pleted an organization at meeting
IN Washington.
Were any minutes kept?" Chair
man Black asked.
mo. We just agreed to oppose the
ublllUy JILL, 1d0SdCll dLlOWClC C0
Did you also plan to oppose the
T. v. A. bill?"
mo, just the Wheeler Rayburn
(holding company bill"
Have you discussed this matter
utilities bilD with any Congressman"
Black snapped.
Il certainly have" Gadsden replied
emphatically. Every member of the
House and Senate committees
He evidently referred to the COM
mittees which considered the bills.
DO you deny you have discussed
this bill outside of committee with the
members of Congress?"
Il can't recall at once. can give
you a list Give me a minute to dis
cuSs it
After a moment Gadsden men
toned the name of Representative
Wolverton, Republican, of New Jersey.
Employed Publicity Agent.
Burnham Carter of Ivy Lee & I. ].
Ross, New York public relations ad-
visers, said the Utility Executives
Committee had employed his firm at
$4,000 month to supply publicity to
Congressman.
He was asked by Black what Con-
gressmen he had supplied information
on power projects.
He recalled the names OF Represent
ative Kahn Republican, of California
and Randolph, Democrat, of West Vir-
ginia.
Vainly Carter pleaded he could not
remember in detail all the members to
whom he had supplied information.
Il can supply you list if you will
give me time" the young witness re-
piled.
I'VE insist you give it now," Black
snapped.
Carter related that he had met
Randolph in the Mayfower Hotel
70 n of "Mr. Argabrite, vice president
OF he American Gas and Electric Co."
Tabrite was a member of the
U Executives Committee" Carter
enied knowledge of who asked
h supply power company informa-
Mrs. Kahn. or how the lu-
+ on was given.
function" Carter stated, "was
t. rite these memoranda"
Questioned by Black.
Trying to refresh Carter's memory
Black questioned him individually
(See LOBBY, Page g.