Hopson's Second

Only twice in recent years has the U. S. Government succeeded in getting fat, toothy Howard Hopson, kingpin of Associated Gas & Electric Co. into the witness chair. On the first occasion, after he lobbied against the Public Utility Holding Company Act he was nicely toasted by the Black Investigation in 1935. Last week was the second occasion. Recently Hopson tangled with SEC, which decided to investigate A. G. & E. after it applied for an SEC order stating that an organization called Utilities Employes Securities Co., which sells A. G. & E. securities to employes, was not an A. G. & E. subsidiary. Finding evasiveness, SEC decided to hale Howard Hopson himself to a hearing and Chairman William O. Douglas personally signed a subpoena "with great pleasure." Finally brought to bay after a search of only five States, the elusive Hopson last week appeared--no small triumph for Mr. Douglas. SEC questioners, all set to ask whether it was true that he had been getting out of A. G. & E. as fast as he could by turning over his securities to his three sisters, found their triumph short-lived. Arriving with a battery of lawyers,* Witness Hopson hoisted his roly-poly body into the witness chair and grinned like an impudent kewpie. The questioning soon got hot.

Hopson: "I must claim privilege as attorney for these companies. I cannot discuss matters which are confidential and acquired as an attorney. . . ."

Examiner (amazed) : "Are you, Sir, an attorney?*

Hopson: "Yes, Sir."

Examiner: "Are you a member of the bar?"

Hopson: "Why, certainly!"

Thus did the elusive Hopson cap the triumph of the persistent Douglas.

* Hopson hires lawyers in squads, once had one whose sole job was creating corporations at the rate of 200 a year. This huge legal bodyguard has kept from 30 to 50 Treasury agents, investigating A. G. & E. income taxes, completely baffled for months. * Ignorance. It was as an ultrasmart lawyer who worked up through the Interstate Commerce Commission and the New York State Public Service Commission that Hopson got into the utilities business in 1921 by buying control of the then small A. G. & E. with a reputed $12,000.

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