Indianapolis Times, Volume 48, Number 20, Indianapolis, Marion County, 3 April 1936 — Page 4

PAGE 4

PHONE SYSTEM REWROTE LAWS. FCC DISCOVERS A. T. & T. Also Shown to Have Sought Utility Bill Defeat. BY RUTH FINNEY Time* Special Writer WASHINGTON. April 3.—With elaborate precautions for secrecy, attorneys in the Bell System rewrote a holding company bill for the Maryland Public Service Commus- ; ion and a tax bill for a Governor of Missouri, records of the Federal Communications Commission showed today. They also campaigned to defeat the Johnson bill limiting jurisdiction of Federal coujrts over utilities. Among documents put into the records of the FCC s investigation of the American Telephone and Telegraph Cos. were a telegram and letter sent in 1934 by former Senator Hamilton F. Kean fR., N. J.) to President Walter Gifford of A. T. & TANARUS., advising him that the Senate Interstate Commerce Committee had postponed for a week consideration of a resolution to investigate the company. The storv of the Maryland Holding Cos. bill was disclosed in letters between R. A. Van Orsdell of the Chesapeake Ai Potomac Telephone Cos. and C. M. Bracelon, vice president and general counsel of A. T. & T. Conferences Are Revealed Van Orsdel and other telephone company officials held a number of conferences with Chairman West of the Maryland Public Service Commission, according to the letters, and finally asked him “if it would be satisfactory if we prepared a bill that would cover the things the j commission wanted and yet would < in a certain degree protect our interests and not create any hardships j In the future." Van Orsdel wrote Bracelon thatj West “would be glad to consider any i suggestions along this line,” and i asked Bracelon if he would care to suggest proper wording. A subsequent letter from Van 1 Van Orsdel called Bracelon’s attention to the fact that his wording had been incorporated in the bill and added that secrecy had been preserved. “What possible motive was there | for concealing what was done?” \ Chief Counsel Samuel Becker asked Bracelon yesterday. Suggest Possible Reason “No doubt Mr. Van Orsdel wasj afraid that if some suspicious-mind- ; ed person or some wild-eyed re- I former learned the general counsel! of a corporation had conferred with ! members of the commission about the legislation they would try to I embarrass the members of the com- j mission," Bracelon replied. The story of tax legislation in j Missouri was told in a letter from George B. Whissell, tax attorney for the Southwestern Bell Telephone Cos. at St. Louis, to A. E. Holcomb, tax attorney for A. T. T. in New York City. The letter was dated March 15, 1929. It 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 I believed j fairly good shape.” But after that, j the letter said, amendments were added and the man “whom the commissioner 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 amendments “without consulting the rests 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, anew Gover- j nor had selected William Gilbert to draft anew tax bill and “at the urgent request of state officials and Mr. Gilbert himself I was asked to collaborate with him.” Mr. Gilbert refused to take Whissell's 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 information must be regarded “in strict confidence, as to disclose it to any one In the state, even any counsel which you might hire, would embarrass our new Governor personally.” Bracelon Directed Drive Bracelon himself took charge of the campaign against the Johnson bill, enlisting the services of counsel of associated companies in all parts of the country and writing E. D. Duffield, president of the Prudential Life Insurance Cos., about bringing the up at a meet-

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j Times Sperial BLOOMINGTON, Ind., April 3. —Sessions of the Midwest regional conference of International delations Clubs, concluding at Indiana University tomorrow, are in gen- ! eral charge of Miss Amy F.eminway Jones, above. Among speakers appearing be- ! fore the college student organization today. Miss Jones also is di- | vision assistant of the Carnegie Endowment for International Peace, which sponsors the move- ! ment. j TECH R.O. T. C. DRILLS FOR INSPECTION HONOR School Unit Striving to Continue High Rating. With approximately 750 cadets enrolled, the Technical High School R. O. T. C. unit is to hold extensive drills every day the weather will permit, according to Sergt. Chester Pruett, in charge of the Tech unit. The drills are pointing toward the annual inspection date. May 19, when Tech will be striving to gain | its fifteenth consecutive honor rat- [ ing. A gain of about 50 cadets over the total of last year's squad will make the Tech unit the largest since the course ceased to be compulsory about 10 years ago. A complete physical examination was given recently to all members of the squad. STATE TEACHERS’ HEAD PRESIDES AT MEETING Measurements Conference to End Supervisors’ Meeting. Timex Special BLOOMINGTON. Ind., April 3. Miss Hilda Maehling, president of the State Teachers’ Association, was to preside today at the annual educational measurements conference. Today was the second day of a con - ference arranged for Indiana elementary school supervisors. Today’s session, closing at noon at Indiana University, was to be featured by addresses of Dr. Charles H. Judd, University of Chicago professor. and Dr. Paul T. Rankin, Detroit. ing of the Association of Life Insurance Presidents. In Washington G. R. Nixon, who according to company officials was employed for the sole purpose of collecting factual information and copies of bulletins and orders interesting to the company, sent daily reports to New York about the legislative situation. One such report, in June, 1932, said a “southern man” promised “to telephone or write direct to some friends from his part of the country and may be able to talk to one difficult man to reach, but who would tie potent and helpful —Glass. “Others here," the memorandum continued, “seemed hesitant to inform this Virginia tartar that his aid and intervention at the proper time would be appreciated. Perhaps they are wise, but the southern man is to try him out.”

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THE INDIANAPOLIS TIMES

APRIL 3, 1936