Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-07-29
2,S6,O1O PROFIT
LAID TO MISSING
UTILITIES WITNESS
Hopson Took Cash and
Passed Dividends, Sen.
ate Probe Told.
EFFORTS TO LOCATE
A. G. E. LEADER CONTINUE
Officials of Company Say Magnate
Has Not Been Seen
in Week.
BY the Associated Press.

Evidence that H. C. Hopson, domi-
nant figure in the Associated Gas 81
Electric System, took profits OF
s2,805, 900 during the depression. while
many of the dividends were unpaid.
was received today by the Senate
Lobby Committee.
1t also heard from a number of
officials of the Associated System and
affiliated companies that they did
not know where to locate Hopson.
Even officials of his personal COM
panies said they had not seen the
utility magnate for 10 days or 2 weeks.
Committee members quickly pointed
out that that was about the time the
lobby inquiry started.
rs he in the custom of disappearing
like this?" asked Senator Schwellen-
bach, Democrat. of Washington.
1T is not unusual" replied one Of
the witnesses, H. A. Silk, accountant
for Hopson Cos.
Justice Aid May Be Asked.
Justice Department aid may be en-
listed in the search for the official,
whose testimony Is desired by the COM
mittee.
Carl Estes, Texas newspaper pub
Usher, hotly denied he had been paid
for speaking against the Wheeler-Ra
burn utility bill.
The committee refused to permit
him to read a prepared statement &C
cusing 1t of mud singing"
He testified that the Texas Power
g. Light paid s225 a month for ad-
vertisements in his magazine, East
Texas Oil, but Indignantly denied he
was Influenced by his advertisers.
II want to say that I viii eat with,
walk with, talk to, fight with, speak
on radios about or argue with any
one I want to about anything any
time I please, regardless of how much
mud is thrown at me or by WYNN"
he said In his statement.
Saw Hopson Week Ago.
F.. S. Burroughs, vice president of
A. g. T., said he saw Hopson Q week
ago yesterday.
He said he had been trying since
to locate him through his family.
II have no doubt he viii show up"
Burroughs said "As soon as he
learns the committee wants HMM
fact, I'm surprised you haven't
heard from him.
Testimony on Hopsopis profits was
given by S. c. Ross, accountant for the
New York State utility investigation.
Senator Schwellenbach, Democrat,
of Washington. also placed in the
record statement that between 1924
and 1929. Hopson got half of a profit
/ Of 81 1857 900 in one of the companies
in which he had invested only s45 200.
Operating Firms Pay.
Ross testified the operating COM
panies had paid about s8,000.00O dur
ing the depression years to Hopson's
companies for services and had no
discretion about the amount.
He presented much testimony Of the
private companies charging several
times what the services cost them.
They charged two-and-half times
what they paid their men, he said,
with one exception.
1t was through this system. Ross
said, that Hopson controlled the
system.
Many OF the officers of the private
companies, drawing big salaries from
them, were also elected officials Of the
holding and operating companies, he
| said
1T is a fair inference" Ross added.
that the primary allegiance of these
men was to the companies from which
they received their income, rather
than to the stockholders who elected
them officials of the operating and
holding companies"
Patton Prepares Statement.
AS the Senate Committee resumed
its inquiry. Representative Patton,
Democrat, Of Texas, was busy COM
piling an itemized statement of his
finances since January l for presen-
tation to the committee. He has tes-
titled he bought Government bonds
valued at $4,000 during a period,
when his salary as member of Con-
gress was only about $500.
He told reporters today his total
income for that time would be be-
tween $4,000 and SIS 1000.
Before Ross testified, the committee
(see LOBBY, Page 81