The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-04-03
PHONE SYSTEM
REWR0TE LAWS.
FEC DISCOVERS
A. 7. & T. Also Shown to
Have Sought Utility
Bill Defeat.
BY RUTH FINNEY
Times Special Writer

WASHINGTON, April 3.-With
elaborate precautions for secrecy
attorneys IN the Bell System re-
wrote a holding company bill for the
Maryland Public Service Commits
sion and tax bill for a Governor of
Missouri. records Of the Federal
Communications Commission showed
today.
They also campaigned to de-
feat the johnson bill limiting juris-
diction Of Federal courts over utili-
ties.
Among documents put into the
records OF the fees investigation
OF the American Telephone and
Telegraph Co. were telegram and
letter sent In 1884 by former Sena-
tor Hamilton F. Kean (R., N. j. to
President Walter Clifford of A. T.
& T., advising him that the Senate
Interstate Commerce Committee had
postponed for a week consideration
OF a resolution to investigate the
company.
The story Of the Maryland Hold
ing Co. bill was disclosed in letters
between r. A. Van Orsdell of the
Chesapeake 81 Potomac Telephone
Co. and G. M. Bracelon, vice presi-
dent and general counsel of A. T.
81 T.
Conferences Are Revealed
Van Orsdel and other telephone
company officials held number of
conferences with Chairman West of
the Maryland Public Service Com
mission, according to the letters,
and finally asked him "if it would
be satisfactory if we prepared bill
that would cover the things the
commission wanted and yet would
in certain degree protect our in
terests and not create any hardships
IN the future"
Van Orsdel wrote Bracelon that
West would be glad to consider any
suggestions along this line" and
asked Bracelon if he would care to
suggest proper wording.
A subsequent letter from Van
Van Orsdel called Bracelon's atten-
ton to the fact that his wording
had been incorporated in the bill
and added that secrecy had been
preserved.
What possible motive was there
Tor concealing what was done?"
Chief Counsel Samuel Becker asked
Bracelon yesterday.
Suggest Possible Reason
mo doubt Mr.. Van Orsdel was
afraid that If some suspicious mind
ed person or some wild-eyed re-
former learned the general counsel
of corporation had conferred with
members of the commission about
the legislation they would try to
embarrass the members of the COM
mission" Bracelon replied.
The story of tax legislation in
Missouri was told in letter from
George B. Whissell, tax attorney for
the southwestern Bell Telephone Co.
at st. Louis, to A. E. Holcomb, tax
attorney for A. T. e. r. in New York
City. The letter was dated March
Is, 1929.
1t began by recalling that the
1927 income tax act was prepared
by a number of corporations of
which we were one, and was, when
it left my hands, in what believed
fairly good shape" But after that,
the letter said, amendments were
added and the man whom the COM
missioner of corporations designated
to take the bill to Jefferson City
was not as capable as the man who
had worked on the drawing of the
BILL and he agreed to the amend
ments without consulting the ress
of us"
Rushes to Capitol
Mr.. Whissell rushed to jefferson
City," and explained "the terrible
mess that had thus been created"
but was unable to do much about
it.
In 1929, he wrote, a new Cover
nor had selected William Gilbert to
draft a new tax bill and at the
urgent request of state officials and
Mr.. Gilbert himself 1 was asked to
collaborate with him."
Mr.. Gilbert refused to take Whis-
sells wording and rewrote it in a
manner that distressed Mr.. Whissell
greatly, but, he added, "if the bill
passes, which I doubt very much, it
will not be as bad, If bad at all, as
the present bill or as bad as Mr..
Gilbert's first draft"
Whissell added that the informa-
ton must be regarded lin strict
confidence, as to disclose it to any
one in the state, even any counsel
which you might hire, would en-
barrass our new Governor person
ally"
BraceIon Directed Drive
Bracelon himself took charge of
the campaign against the Johnson
bill, enlisting the services of coun-
sci of associated companies in all
parts of the country and writing E.
d. Duffield. president of the Pru-
dental Life Insurance Co., about
bringing the matter up at a meet
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