Up Bobs the Cork

At a House hearing on influence peddling in Washington, an old Washington figure bobbed up last week in a somewhat new role. His name: Thomas G. ("Tommy the Cork") Corcoran, lawyer and onetime brain-truster who had drafted much of the New Deal legislation during the '305. Federal Power Commissioner Jerome K. Kuykendall testified at the House Interstate and Foreign Commerce Committee hearing that a gas-company representative (later identified as Tommy the Cork) had tried to influence him in a case involving the Midwestern Gas Transmission Co., a wholly owned subsidiary of the giant Tennessee Gas Transmission Co.

Last fall, Midwestern was trying to get FPC approval to build a 504-mile pipeline from the Canadian border to Marshfield, Wis., also wanted the FPC to permit a 7% return on its investment.

Higher Rates. After the FPC examining staff had recommended a 6 1/4% return, Corcoran phoned Kuykendall, although the Cork was not listed as the Midwestern attorney for the case, and pleaded for the higher rate. The committee wondered: Why didn't Kuykendall hang up on him? Answered Kuykendall, a Republican appointed by Ike: "By the time I knew what he was talking about, he had said it. I didn't talk to him. He talked to me. How could I prevent it?"

Corcoran also got in touch with two other FPC commissioners, later called on Kuykendall in his office to make another plea for the rate. The pipeline was approved, but the rate was not set because, explained Kuykendall, the FPC was waiting until all the expenses of building it were in. Kuykendall insisted that there was nothing to hide about the affair, said that he had informed the committee of the calls himself, although not until the story had been printed in a trade journal.

Fat Fees. Other records showed that Tommy the Cork was a fairly familiar name to the FPC. Back in 1957, Tennessee Gas had been granted more than an $8,000,000 rate increase. For Corcoran's help in getting the increase, Tennessee Gas paid his law firm $60,444. The Chicago law firm of Jake Arvey, Illinois political kingpin, Democratic national committeeman, and an Adlai Stevenson stalwart in 1952 and 1956, got $15,000. Since neither was listed as attorney in the case, the FPC examiner who had recommended the increase wanted to know what they had done for the money. Said Tennessee Gas Vice President Ronald McVey: "When either of them encounters any situation which they believe would affect the company's welfare, they immediately advise the company and recommend a course of action to be pursued ... He [Corcoran] keeps the company advised of all governmental developments, be they legislative, administrative, or judicial on both national and state levels. It is my opinion and that of the management that the legal services rendered by these firms are well worth the fees we are paying them."

The FPC ruled that the fees could not be passed on to the consumer, i.e., included as part of company expense in determining the rate base. To prevent calls and visits such as Corcoran's, the Harris committee wants to make it a criminal offense for companies with cases pending before a commission to seek off-the-record meetings with commissioners.

This file is automatically generated by a robot program, so reader's discretion is required.