Evening Star Newspaper, August 13, 1935, Page 4

AR % LAWYER EXPLAINS UTILITY CAMPAIGN Senate Quiz Gets Details of Organization of Drive. B the Associated Press. Its utility lobby hearing runping eoncurrently with that of the Hbuse Rules Committee which questioned H. C. Hopson of the Associated Gas & Electric System, the Senate Lobby Committee today heard a New York lawyer describe the organization of the drive against the Wheeler-Rayburn bill by utilities companies which later formed the Committee of Public Utili- ty Executives, headed by Philip H. Gadsden. John F. MacLane of the law firm | of Simpson, Thacher & Barttell, said | his firm and Sullivan & Cromwell, | another law firm, were retained for‘ the drive. Previous testimony has| shown that each received $75.000. The lawyer testified they had been retained to advise on “what could le- gally be done and what could not” in opposing the bill, in addition to other services He said his firm had about 50 law- yers and that Sullivan & Cromwell probably had a larger staff. Editorial Distributed. ‘The evidence said MacLane had | written a letter for a utility head to | accompany copies of an editorial by | David Lawrence from the United | States News, which was distributed to stockholders. MacLane testified that at one time | he had met W. W. Aldrich, head of | the Chase National Bank, who was in | Washington opposing the utilities bill. MacLane said he was not consuited | about utility companies paying for | telegrams to Congressmen. He said he also was not cognizant | of any plan for hiring personal friends of Congressmen to come to Washing- ton and solicit votes against the bill. Chairman Black said the Gadsden committee had done the latter. Bringing Friends Here. MacLane said he approved the idea of bringing friends of Congressmen to Washington. Black read a Su-| preme Court decision condemning the practice, but the attorney said it was| “done every day” in Washington. The witness said the only member of Congress with whom he had dis-| cussed the bill was Senator Borah, Republican, of Idaho, an old friend. He said he merely discussed the legal phases of the measure with the Benator. T. Justin Moore, attorney for the | Gadsden committee, testified he had | talked about the bill to Senator Bone, | Democrat. of Washington and Senator Minton, Democrat, of Indiana, a mem- ber of the Lobby Committee. He said he also had talked to Rep- resentatives Pettengill, Democrat, of Indiana and Eicher, Democrat, of Iowa. - e 375,000 BUY BONDS The Treasury reported yesterday that 375,000 persons had invested | By the Associated Press. HE “microbe hunters” of the Public been given 45 acres in which | to grow their own white mice, | rabbits and guinea pigs and search for | | Hfe-saving serums. | Luke Wilson. a retired business man, THE EVENING Where U. S. Will Raise Laboratory Animals GOVERNMENT PRESENTED FARM Views on the farm of Luke Wilson near Bethesda, presented to the United States Public Health Service for the raising of guinea pigs and other animals to be used in laboratory experiments. | fore by the flying of psittacosis serum | “earmarking” to the Marine Hospital at San Fran- Health Service have|cisco to save the life of Dr. H. E.| chase sum Hasseltine. Wilson learned of the difficulties under which the researchers labored— having to buy their animals from all over Eastern United States, subject NEAR BETHESDA. STAR, WASHINGTON, D. C., TUESDAY, AIRMAIL TO GHINA BIDS ARE ASKED Planes to Carry Passen- gers, Too—Million Set Aside for Project. ¢ By the Assoclated Press. Shortly after the President signed the second deficiency supply bill late yesterday, the Post Office Department asked bids for regular weekly air serv- ice from San Francisco to Canton, China. The bill provides $1,000,000 for the first year’s opgration. The route will touch Honolulu and Manila and the planes will carry passengers and mail. It must be be- gun within a year after the contract is let, the advertisement stated. Bids | will be accepted until October 21. Demanding flying equipment American make, the Post Office De- partment specified multi-motored sea- planes with a cruising speed of 125 miles an hour and capacity for ay least six passengers and 800 pounds of mail. The planes must be capable of sustained flight on 50 per cent of their motor power at an altitude of 1,000 feet. The department warned against “undue promotion of the sale of stock of a bidding or contracting corpora- tion,” and demanded that books and accounts of the air companies be kent open to Government inspection. No company which pays an officer in| excess of $17,500 will be eligible. “The contractor shall make the ar- rangements at his own expense in te- curing concessions to operate, for | landing facilities, lighthouses, radio stations and such other aides to navi- gation as may be necessary,” stated the advertisement. Maximum rate of mail pay will be| $2 per mile for the specified load and $1 per pound per 1,000 miles in excess of that load. tee Counsel Collins arrived promptly | at 10 o'clock, the time scheduled for | the hearing to start. A few of the committee members trailed in behind them. | ~—Star Staff Photos. the lands for the A $10 nominal pur- included to make the | Hopson Smiles at Proceedings. gift bold as a “sale.” A dozen Capitol policemen then came | President Roosevelt was brought |in and took stations in various parts into the preliminary negotiations and | of the room. A few minutes later Surg. Gen. Hugh S. Cumming and Dr. Hopson came in, carrying a cane and | L. R. Thompson, assistant surgeon |smiling. Photographers met him at | Health Service formerly of Evanston, I?l. wished t0 | ¢, hazards of Winter shipping. He‘lenerll, spent days paving the way |the door with a flashlight greeting do something for his Government. He | joarneq that many caught pneumonia | fOF the unique presentation. | deeded this land from his estate, Tree | Tops, in nearby Maryland, before sail- ing for Europe today on the Bremen. Fund Available for Building. | With completion of some legal tech- nicalities, a $100.000 Federal fund is available for constructing the first building. ‘Wilson became interested in the dra- and died, sometimes ruining a diffi-' cult experiment. | After Wilson decided he wished his land to be used to aid medical prog- ress, he found giving it to the Gov- ernment a complicated chore. “Earmarked” for Health Service. " It couldn't be donated to any spe- of | i About 50 scientists are at work at the National Institute of Health Lab- oratories on researches requiring use of small animals. In some typhus fe- | ver studies, fleas are raised on rats; in ceptible to virus, are used in psittaco- | and followed him to the witness stand and continued to shoot for five minutes. Hopson.appeared to be much | amused at the proceedings and con-} tinued to smile. Hopson was called to the witness name. At that moment a photog- | and Mange owned the entire gas and | Rocky Mountains fever work, ticks are | stand at 10°15 o'clock and after being | €lectric company. fed on guinea pigs. White mice, sus- | sworn he was asked to give his full | matic, life-saving role of the research | cial department, had to be signed over sis (parrot fever); encephalitis (brain | rapher's bulb fell to the floor and fever) and poliomyelitis (infantile pa- | exploded. scientists at the National Institute of Health, again brought vividly to the to the Government as a whole, but a clause was written into the deed ralysis) studies; rabbits in work on | tularemia (deer-fly fever). 42 Sleuths Hunted Hopson Lobby (Continued Prom First Page.) “Hurry, boys, and get it over” O’Connor said to the photographers. | Hopson said he lived at Lake| Hopotacong, Sussex County, N. J. | and also had a residence in a New York hotel. He testified he came back from Florida in June, but while there kept | actively in touch with the utilities | AUGUST 13, 1935. Stowaway FIRST TO HIDE OUT ON NORMANDIE, i | tion in 1924, dismissed the recall peti- | JOAN BAILEY, 14, who has earned the distinction of being the first stowaway aboard the new French liner Normandie. She introduced herself to the crew while the ship was well out at sea and is now staying at the home of the purser in Le Havre, France, until the liner Champlain makes the crossing to take her home and back to her mother in New York. -Wide World Photo. 000 a year, and it has since expanded to a $100,000,000 concern. Hopson then went into detail as| to how he and Mange built up the Associated Gas & Electric. He said Mange handled the operating end and he took charge of the financial de- tails. At one time, Hopson testified, the Associated Gas & Electric controlled 300 operating companies, but a num- ber of them were later dissolved, so at the close of the Federal Trade Commission investigation of holding companies several years ago there were only 198. Since then, however, he said, a few had been added. Hopson, in response to questions by O’Connor, denied vigorously that he “I don't think there's any truth in | all this hooey that Mange and I own the Associated Gas & Electric,” he | “There are some very im- portant steps in these 300 operating companies. Not Largest Holding Company. “At the time Mange and I acquired the company, however, we owned it, lock, stock and barrel.” O’Connor then asked him if the Associated Gas & Electric is the largest holding company in the coun- [ | declared. defeated by Bryan at the last city election, be placed on the ballot for | mayor. Promoters of the proposed recall were unidentified, although friends of | Bryan’s administration said they un- | derstood the petitions were originated | in a beeg tavern, the license for which was not renewed by the Lincoln City Council. Bair said he did not initiate the petitions nor know of their existence until yesterday. “I neither accept nor repudiate the petitions at this time. I want time to study the matter,” he said. Drafted as Candidate. After leaving the Governor's chair LINCOLN, Nebr, August 13—‘ last January 1 Bryan said he was Charles W. Bryan, brother of the great | through with politics. Three months commoner and mayor of Lincoln, to- | jater he was drafted as a candidate day found himself the victim of one | ¢, mayor of Lincoln, and on May 7 of his favorite political devices—a peti- | was elected to that office tion for a recall election. : ... | Immediately upon taking office, F“lfinl ;fl! 40 y;ln g: active DIOHN;I Bryan, a stanch prohibitionist. set up ca e Bryan has been a stanch| ygiq regyjations regarding beer tav- advocate of the initiative, referendum | erns and their operation. :aguox:c“-u in State and municipal| Now, with 21 months of his term | left to serve, he is faced with ible Disregards Petitions. recall. The city clerk’s omrfiuu | Bryan, whose political activities | 5846 signatues would be needed to in- | took him finto the Nebraska Governor's | gtitute the recall election. | chair for three terms and into the | Democratic Vice Presidential nomina- BRYAN IS FACING RECALL ELECTION Petitions Seek to Remove Him as Mavor of Lin- coln, Nebr. By the Associated Press. Former A. A. A. President Dead. | tions without definite comment and| PAWTUCKET, R. I, August 13 le(t early today to visit his son in | (#).—Dr. Julian A. Chase, 82, former Minneapolis. president of the American Automobile The petitions, seeking to remove | Association and of the Rhode Island | Bryan from the office he held once | Medical Society, died at his home | before, asked that Erest M. Bair, | here yesterday. Why Worry About Smooth Tires When You Can Ride On New Kelly-Springfield Standard Tires At These Low Prices! $114,353,594 in “baby bonds” up to the close of business July 31. | These bonds were first offered on | March 1. They mature in 10 years | Wheeler-Rayburn bill. Hopson, how- | holding bill, through B. B. Robinsor, f | ever, is to be recalled in a few days, who testified before the committee | | and at that time, Chairman O’'Connor | last week and revealed that he had | | indicated, the committee would dig seen him at the Shoreham Hotel. try. “No,” he answered. “I think the Commonwealth-Southern is larger.” Hopson also declared that there are Ace Detectives Operated in All Sections of Country for Lobby Probers. and are sold on a discount basis to | yield 2.90 per cent to maturity. | Illinois investors were reported leading the country with total pur- chases of $9,149,287, while New York, Ohio, Missouri and Jowa were in the second-place group with sales rang- | ing between $6,000,000 and $7,000,000. July cash sales for the entire coun- try were $21,648,185. Venture Club to Meet. Members of the Washington Ven- | ture Club will have explained to them | tomorrow evening the workings of a | Western Union Telegraph office by Miss Ruth Baker, commercial repre- | sentative of the company and a mem- ber of the local Soroptimist Club. They will meet in Room 608, Com- | mercial National Bank Building. | CITY NEWS IN BRIEF. TODAY. Dinner, Alpha Chi Rho Club, Uni- | wversity Club, 6:30 p.m. ] e | Meeting, Daughters of '98, National | Auxiliary of Spanish War Veterans, Carlton Hotel, 8 p.m. | BY BLAIR BOLLES. ORTY-TWO ace sleuths, operat- | accepted. ‘ ing in all corners of the coun-| Collins enlisted the co-operation of try, engaged in the search f0r | every member of Congress in his ef- | 250-pound Howard Colwell | fort to make public every detail of Hopson, missing atility magnate, Who | the pro and con lobbying activities was located yesterday. {on the holding company bill by ask- The gumshoes were the base oper-,ing all Representatives and Senators ators of the two rival lobby investigat- | to reveal to him what pressure had ing committees, House and Senate,| been brought on them to vote for or | private tips by the bale were eagerly | which were at a standstill until Hop- son was stirred from cover. These 42 moved according to the | dictates of William H. Collins, counsel | for the House Committee, and Herbert Blomquist, Senate investigating mas- ter mind. | Blomquist and Collins digested the | information their operatives ferreted out and subpoenaed those who had astounding things to tell. In this way, no matter how startling the revela- tions in committee, Blomquist and Collins usually knew beforehand ex- actly what bombshells were going into the Record. Race Between Committees. Although much more might have | been accomplished if the Senate and House investigators had united their forces, this was scorned by the com- | Meeting, Young Democrats, Carl- | petitive committees. It was a race ton Hotel, 8 p.m. | between them. and even Representa- against the legislation. Tavenner First on Trail. The leading Washington hawkshaw | employed by Collins was Clyde Tav-| enner, who was first on the trail of Hopson at the Shoreham. Tavenner, listed as an assistant bill clerk of the House, gained experience as a con- gressional investigator while working for Representative Sabath last year on his inquiry into the practices of real estate bondholders’ protective committees. Blomquist is a graduate of the J. Edgar Hoover School of Investigation. He teamed with Senator Hugo Black, present chief of the Senate lobby in- vestigation, when the Senator ran the | ocean and air mail contract inquiry. | Mrs. Blomquist acts as his secretary. All the bloodhounds of the Capitol | would have given a pretty penny lo; more deeply into the lobby angle. | Hopson said he was very eager for Found in New Jersey. | st The long-missing Hopson was found | defeat the so-called “death sentence “somewhere” in New Jersey yester- clause day by House process servers and | With System 13 Years. brought back to Washington under a | O'Connor then fired a volley of subpoena. Although his “hideout” | questions at the witness about his was not disclosed, it is believed he | utilities connections. He explained, was found at his home at Lake Hopat- | however, that before he went cong, N. J. Florida last Winter he segregfled‘ Hopson gave the committee his | himself as far as possible from any customary smile as he took the wit- | detailed duties, assigning them -to ness stand, but his demeanor had | other persons and served thereafter changed somewhat when he was ex- | only “in an advisory capacity.” cused after the two-hour grilling, “How long have you been identified during which he clashed several | with that system?” O'Connor asked. times with Chairman O'Connor and “Since 1922, seven years after I| Representative Cox, Democrat, of went into active business in New : Georgia, because of his refusal to York,” he replied. i answer what he described as “per- | The Associated Gas & Electric In | sonal” questions. 11922, he added, was a small holding | ! At the outset, Chairman O'Connor | company. At that time, he said,| plied Hopson with questions, all of | there appeared an era of consolida- | them designed to show how he and tions and enlargement of utilities. He J. 1. Mange, president of Associated | and Mange acquired control of the Gas & Electric, created the vast util- | Associated Gas & Electric. | ities holding empire, which at one| At that time, he declared, the gross | time controlled 300 operating com- | earnings of the company were $3,500,- ' panies. | Hopson appeared to be a willing | witness. He answered questions readily and spoke slowly and clearly. He told | the committee he wanted to be an| “honest” witness. | 8 A half hour before Hopson was EVERY | Robinson to undertake his work to | b, a8 number of other companies, if grouped together, would be larger than Associated Gas & Electric. | O'Connor next began to question | Hopson about the deluge of letters | that swamped members of Congress opposing the holding company bill. | In that connection, he admitted he | had written to members of Congress. | “Did you sign your nate?” queried | ©O’Connor. “Surely,” he replied. Rail Extension Talked. Mexico is considering the possible extension of the southern division of its national railways. | Mattresses Remade The Stein Bedding Co. 1004 Eye St. NNW. ME. 9490 PAIR OF Tires Guaranteed 12 Months Against All Road Hazards. Six Times Fortified Against Blowouts. Buy Them on Your Charge Account. Buy on Our Budget Plan, which includes small carrying charge. All Tires Mounted Free of Charge. DUCO POLISHES Duco No. 7 Polish Duco Wax - Cleaner and Polish st | tive John J. O’'Connor, chairman of Meeting, District division, Young ine House inquisition, took a hand in uncovering the chief prize of the race —Mr, Hopson. When Hopson was reported some- | where in the Shoreham Hotel last week, O'Connor rushed to a room on the fourth floor, rolled up the Democrats’ Clubs of America, Willard Hotel, 8:30 p.m. | Meeting, Socialist Labor party, An- napolis Hotel, 8 p.m. Meeting, Kismet Council, Arcanum, 930 H street, 8 p.m. S | Meeting, Columbia Heights Business | Men'’s Association, Tompkins Build- ing, 3330 Fourteenth street, 8:30 p.m. TOMORROW. Luncheon, Rotary Club, Willard Hotel, 12:30 p.m. Luncheon, Electric Institute, Carl-| ton Hotel, 12:30 p.m. | Luncheon, Lions Club, Mayflower Hotel, 12:30 p.m. Dinner, Zonta Club, Y. W. C. A, Beventeenth and K streets, 6:30 p.m. Banquet, Phi Sigma Chi Fraternity, ‘Willard Hotel, 7 p.m. Meeting, District Council, Arcanum, 930 H street, 8 p.m. Royal | Royal | [ Excursion, Kismet Council, Royal | Arcanum, steamer City of Washing- | ton, Seventh street wharf, 8:45 p.m. CQOL... at the shore 2-DAY excursions to- ATLANTIC CITY SATURDAYS August 17 and 3N Sept. 14 and 28 17 .day tickets to Atlantic City $913 Similar low fores fo other South_Jersey Shore Resorts Lea Through air - conditioned parlor cars week-days — through trains Fridays and Saturdays te R i CityOtber conveniant all-rail serice.to.the sh via Deidhare Ri I PENNSYLVAN |rug, looked under the bed, peered | five years. into a suitcase and announced to | waiting reporters: “He is not here.” The private lives of those who might have something salient to re- veal to the committees become the 8, b, c's of the investigators. No Secrets From Sleuths. The sleuths know how much money | they had in the bank, what securi- ties they owned, where their money came from, whom they ate dinner | with, what they did in their spare | moments, whether they lost their tem- per when they played bridge and | what they have said during the last All forms of detective work were called into play in this battle of wits between the probed and the probing —suspects were shadowefl, rooms were searched, questionnaires were sent out wholesale, letters were written and K eng $A 25 ROUND TRIP (coaches enly) vio Delaware River Bridge. The enly All-Rail route 1o the seashors. ve Washington, 8:00 A. M. (Returning, §0od on any train up to and including Sunday) Tickets via Mkt St. Whf. ;‘oo IA RAILROAD turn up Hopson, who, for all his pound- | scheduled to take the witness stand, age, is an experienced master at| the large caucus room in the House | eluding searching parties. He stayed | in hiding six weeks two years 2go0 | when Duncan U, Fletcher, chul.rmln‘ of the Senate Banking Committee, wanted to talk to him about stock | market practices. Hopson today is the rajah of a util- | ity empire which includes 263 light and power companies—the Associated | Gas & Electric. He learned how toi get rich quick in utilities by serving | on the New York State Public Service | Commission. YOU OUGHT TO SEE HOW THE MEN FLOCK AROUND HER! T's A GFT L 4 POPULAR GIRLS never risk ugly Cosmetic Skin! They use cos- Office Building began to fill with spec- | tators. There seemed to be just as | many women as men in the crowd. Despite the size of the room, the heat was intense. Newspaper report- ers, and there were about 60 of them assigned to the hearing, removed their coats. Some of the spectators fol- lowed their lead. | Outside the caucus room, photog- raphers by the score paced nervously to and fro. Chairman O'Connor and Commit- | IT’S LUX TOILET SOAP! 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