Evening star., 1935-07-30

system is in the control Of those three
men?" Black asked.
"Yes"
"And those three vote as they are
told to vote by Mr.. Hopson and Mr..
Mange?"
wasser did not reply directly to that
question.
Expense All0cated.
Wasser said the expense Of cam
paigning against the Wheeler-R Ray
burn bill was allocated against the
operating companies.
80 that the expenditure was a
charge actually made against the con-
sumers2" Senator Minton, Democrat,
Of Indiana asked.
NO" Wasser replied. at will come
out of the pocket of the stockholder."
But it will be shown as an ex-
pense item to get raised rates?"
1T depends on the regulatory COM
missions" Wasser said.
Has an expense of this kind ever
been refused by a State commiSSion?"
Black asked.
mo, because we have never had this
kind"
Wasser conceded that a statement
put out by the company yesterday
that the cost of the campaign was not
charged against consumers was lncor-
rect.
Pursuing the profits from the vast
A. G. E. system, the committee de-
veloped that engineering fees of S.
$4,000 were paid from l929-33, in
elusive, to the E. M. Gilbert Engineer
ing Co. and predecessors.
Hill and Munson Also Paid.
Wasser said he did not know who
owned the company, but said the fees
represented 71a per cent of all con-
struction by all A. G. E. companies.
The list of A. G. E's legal expenses
from opposing the Wheeler -Rayburn
bill included, In addition to the Hurley
firm, the following payments:
Travis. Brownback & Paxson, New
York, $500.
Hill & Munson, Washington, 81 900.
Tom D. McKeown, Chicago, ST.
891.25.
z. B. Naylor, New York, Sill.
In addition to the legal fees, the ex-
pense sheet showed $780, for ad-
vertising in newspapers and periodicals
direct; 32,406 to the Associated Mag
azine, Inc, Reading, Pa; $l46.879 for
kilograms and telephone calls and
$36,l54 for travelling, hotel and auto
expenses.
On 80 DirectorateS.
When Burroughs took the stand he
said he was director of 80 different
corporations in the A. G. e. system
but could not list them without look
ing them up.
He said no one connected with the
system could name offhand the COM
panies or even the names Of those of
which he was director.
He offered to furnish the committee
all the information it wanted. adding
that it was "just circus stuff" to ask
him for so much information offhand.
He agreed that Hopson and Mango,
through a series of holding companies.
controlled the Associated Gas l. Elec-
trio Co.
The big audience laughed as this
was finally conceded by Burroughs
after much sparring.
TITS not funny" the witness said
Indignantly.
mo, it's tragic" Black retorted.
During the course Of the inquiry,
Senator Schwellenbach said he held
about 10 shares Of A. G. e. stock he
bought in 1928 for about $50. which
was now worth about so cents.
Later Burroughs said he held 5000
or 1000 shares.
when did you acquire it?" Black
asked. ,-
About the same time you did,
1929" the witness replied, looking at
Schwellenbach and laughing.
Many "Tips" Received.
Committee members expressed con-
fidence today they would continue to
make headway with the inquiry from
the mass of tips" which they said
were pouring in from voluntary
sources.
The Senators are attempting to es-
tablish responsibility for the destruc-
ton of A. G. E.'s records with regard
to its campaign against the holding
company bill.
One of the company's officials testi-
fled he issued orders for destruction Of
the records in 26 States, but the COM
mittee was determined to find out