Evening star., 1936-03-20
TELEPHONE PROBE
RESUMES TUESDAY
Justice Department Asked
to Investigate Gamblers
Use of Facilities.

BY the Associated Press.
The Federal Communications Com
mission is to resume Tuesday its in
Quiry into activities Of the American
Telephone & Telegraph Co., which
already has led to request for Jus
tice Department investigation of use
of the utility company's facilities by
gamblers.
The hearing was recessed yesterday
after high officials Of the company
blamed "overzealous" efforts Of en-
ployes for conditions which brought
about the request for the probe by
G-men. The Communications Com
mission based its request on testimony
developed so far in its own $750,0
inquiry into activities Of the giant
holding company for the Bell Tele-
phone System and its subsidiaries.
Walter s. Clifford, A. r. & T. presi-
dent, on the witness stand yesterday
afternoon, testified he had been 'un-
aware Of this type Of business" He
referred to evidence concerning such
actions as these:
rClIlSlhl1dtLUlI VI tCtCtyPNWAANA
equipment for o man convicted OF
gambling.
Fruitless protests Of Miami, Fla, au-
thorities against providing wires for
racing news services.
Assistance by a company attorney in
preparing the defense for an operator
Of an alleged gambling establishment.
Employees "Overzealous."
I'VE certainly don't want to deal
with people who are breaking the law,
whether it is race horses or anything
else" Clifford asserted.
"I think the evidence here has
merely shown that our employees were
overzealous in their efforts to get rev
enue and protect the compsny's prop
erty."
He emphasized the dithculties Of de-
Gliding which applicants for service
should have it and which shouldn't
and said the company cannot dis
criminate" between customers.
The company, he continued, would
like to formulate some rule TO prevent
illegal use Of its equipment without
having to organize q spy or an espion-
age system"
C. M. Bracelen, vice president and
general counsel of A. T. d T., ap-
praised the evidence as showing
s'hard-working and loyal employees
had gone much too far" in their
zeal to protect the company's inter-
ests as they saw them"
Although no word was Immediately
forthcoming from the Justice Depart
rnent. authoritative F. G. G. sources
indicated 1t would look into the case.
Walker Asks New Inquiry.
The request for the new inquiry
was made by Commissioner Paul A.
walker. in charge of the F. c. c. in
vestigation. He said he thought the
evidence was such 1t should be called
10 the Justice Departments attention.
Samuel Becker, dynamic F. c. G.
special counsel, concluded his exalnl-
nation of this phase Of A. T. d T.
activities with the introduction Of new
evidence to support his contention
that the telephone company Is serving
gamblers and pool room operators"
through the wire facilities for racing
news services.
Becker pictured the work Of the
company agents in connection with
raids on gambling houses in a dozen
cities, particularly emphasizing their
efforts TO recover telephone equip
ment seized by police.
Becker read to Clifford from an
article he had written for magazine
stating that the company had mo
objection to Investigations by public
bodies at any time-we have no
skeletons to hide"
The special counsel asked whether
Clifford still thought this true, and
the official answered: "Yes-1
wouldn't call this q skeleton"