Authors: Arthur Hailey
Tags: #Industries, #Technology & Engineering, #Law, #Mystery & Detective, #Science, #Energy, #Public Utilities, #General, #Fiction - General, #Power Resources, #Literary Criticism, #Energy Industries, #English; Irish; Scottish; Welsh, #Fiction, #Non-Classifiable, #Business & Economics, #European
shrugs.
Tight-lipped, the GSP&L chairman answered, "Two hundred and forty-five
thousand dollars."
Birdsong waved a hand airily. "No, sport, you misunderstand me, I didn't
ask the capitalization of Golden State Power &, Light. I asked how in u
ch br ead you earn."
Humphrey, unamused, replied,- "That-is the figure I gave."
"I can hardly believe it!" Birdsong clapped a hand to his bead in a
theatrical gesture. "I didn't believe that any one person could earn so
much money." He emitted a long, low whistle. "Wow!"
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From the audience in the warm, crowded hearing room came echoing whistles
and other "wows!" Someone called out, "We consumers are the ones who pay
itl Too damn much!" There was applause for the heckler and stomping on
the floor.
On the bench above, looking down at witness, questioner and spectators,
the presiding commissioner reached for a gavel. He tapped with it lightly
and commanded, "Orderl" The commissioner, in his mid-thirties and with
a pink, boyish face, had been appointed to his post a year ago after
service in the ruling political party. He was an accountant by training
and was rumored to be a relative of the Governor.
As the commissioner spoke, O'Brien lumbered to his feet. "Mr. Chairman,
is this harassment of my witness necessary?"
The commissioner regarded Birdsong, who was wearing his uniform of shabby
jeans, a multicolored shirt open at the neck, and tennis shoes. In
contrast, Humphrey, who ordered his three-piece suits from deLisi in New
York and went there for fittings, was sartorially impeccable.
"You asked your question and you received an answer, Mr. Birdsong," the
commissioner said. "We can manage without the theatrics. Proceed,
please."
"Certainly, Mr. Chairman." Birdsong swung back to Eric Humphrey. "You did
say two hundred and forty-five thousand dollars?"
:'Yes, I did."
'Are there other compensations which go with being the big cheese
71 (Laughter from the spectators.) "Excuse me-the chairman of a public
utility? A personal limousine perhaps?"
Pt
Yes.
'Chauffeur-driven?"
'Yes.
'Plus a fat expense account?"
Humphrey said huffily, "I would not refer to it as fat."
"How about enormous?"
More laughter.
J. Eric Humphrey's intense displeasure was beginning to show. Essentially
a higb-level. administrator and in no way a rough-and-tumble fighter, he
was ill-equipped to handle the flashy showmanship of Birdsong. He
responded coldly, "My duties involve certain expenses which I am
permitted to charge to our company."
"I'll bet!"
O'Brien was halfway to his feet. The presiding commissioner waved him
down and instructed, "Confine yourself to questions, Mr. Birdsong."
The huge bearded man grinned broadly. "Yessir!"
Seated in the public section, Nim fumed. Why didn't Humphrey answer
bluntly, aggressively, as he could and should? My salary, Mr. Birdsong,
is a matter of public record since it is reported to regulatory
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agencies and the information is easily available. I am certain that you
knew it before asking the question; therefore your show of surprise was
phony and deceitful. Furthermore, the salary is not out of line for the
chairman and chief executive of one of the nation's largest corporations;
in fact, it is smaller than in most other companies of comparable size.
One reason for the level of my salary is that industrial organizations
like GSP & L are a-ware they must be competitive in recruiting and
retaining executive talent. To be specific: My own experience and
qualifications would certainly earn me an equal or larger salary else-
where. You may not wholly like that system, Mr. Birdsong, but while we
remain a free enterprise society, that is the way it is. As to a
chauffeur-driven car, this was offered to me at the time of my employment
on the same competitive basis as salary, and also on the assumption that
a chief executive's time and energies are more valuable than the cost of
such a car and driver. One more point about that car: Like other busy
executives I am accustomed to work in it on my way from one place to
another and seldom relax there. Finally, if the company's directors and
shareholders are dissatisfied with my performance in return for money
paid, they have power to remove me . . .
But no! Nim thought glumly: The soft approach, excessive worrying about
an elusive public image, pussyfooting, never standing up to the Birdsongs
of the world by employing their own tough tactics in reverse -all these
were the order of the day. This day and other days to come.
It was the second day of bearings on the license application for Tunipah,
first stage. The preceding day bad been filled by formalities, including
submission by counsel for GSP & L of a mammoth 5oo-page "Notice of
Intention" (350 copies printed), the first of many similar documents to
come. As O'Brien put it sardonically: "By the time we're through we'll
have caused to be chopped down a forest of trees to make the paper we
shall use which, put together, could fill a library or sink a ship."
Earlier today, J. Eric Humphrey was summoned as the applicant's first
witness.
O'Brien had led the utility's chairman quickly through a recital of the
need for Tunipah and the site's advantages-the promised "brief
appearance." Then there had been a more lengthy questioning by counsel
for the commission, who was followed by Roderick Pritchett,
manager-secretary of the Sequoia Club. Both cross-examinations, while
occupying more than an hour each, were constructive and low-key. Davey
Birdsong, however, who was next and appeared for p & lfp, had already
enlivened the proceedings, clearly to the delight of supporters in the
audience.
"Now then, Mr. Humphrey," he continued, "I -guess you wake up in the
morning figuring you have to do something to justify that enormous salary
of yours. Is that right?"
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O'Brien called out promptly, "I object!"
"Sustained," the commissioner pronounced.
Birdsong was unperturbed. "I'll ask it another way. Do you feel, as the
main part of your job, Eric baby, that you have to keep dreaming up
schemes-like this Tunipah deal-which will make huge profits for your
company?"
"Objection!"
Birdsong swung toward the GSP & L counsel. "Why don't you have a tape
made? Then you could press a button without opening your mouth."
There was laughter and some scattered applause. At the same time the
young commissioner leaned over to confer with a second man seated beside
bim-an elderly administrative law judge, a civil servant with long
experience in the type of hearing being conducted. As he spoke softly,
the older man could be seen to shake his head.
"Objection denied," the commissioner announced, then added, "We allow
considerable latitude at these hearings, Mr. Birdsong, but you will
please address all witnesses with respect, using their correct names, not
as"-be tried to suppress a smile but was unsuccessful-"sport or Eric
baby. Another point: We would like some assurance that your line of
questioning is relevant."
"Oh, it's relevant all right! It's really relevant." Birdsong's answer
was expansive. 'nen, as if changing gears, he slipped into the role of
supplicant. "But please realize, Mr. Chairman, I'm just a simple person,
representing humble people, not an important, fancy lawyer like old Oscar
baby here." He pointed to O'Brien. "So if I'm awkward, overfriendly, make
mistakes . . ."
Tle commissioner sighed. "Just get on. Pleasel"
"Yessir! Certainly, sirl" Birdsong swung toward Humphrey. "You beard the
man! You're wasting the commissioner's time. Now quit futzing around and
answer the question."
O'Brien interjected, "What question? I'll be darned if I remember it. I'm
sure the witness can't."
The commissioner instructed, "T'he reporter will read the question back."
Tle proceedings halted and those on hard chairs and benches shifted,
making themselves more comfortable while a male stenotypist, who was
keeping the official commission record, flipped back through the folded
tape of his notes. At the rear of the room several newcomers slipped in
as others left. As those participating knew, in months and years to come,
long before any decision was reached, this scene and sequence- would be
repeated countless times.
The oak-paneled hearing chamber was -in a twelve-story building-n-e-ar
the city's center, occupied by the California Energy Commission, which
was conducting the present series of bearings. Directly across the street
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was the building of the California Public Utilities Commission, which
would later conduct its own hearings on Tunipah, in large part repeti-
tious. Competition and jealousy between the two separate commissions were
intense and, at times, took on an Alice-in-Wonderland quality.
Two additional state agencies would also get into the act soon and
conduct hearings of their own; these were the California Water Quality
Resources Board and the Air Resources Board. Each of the four government
bodies would receive all reports and other papers generated by the
remaining three, most of which they would ignore.
Then, at lower level, it was necessary to satisfy an Air Pollution Con-
trol District which might impose restrictions even more severe than those
of the state agencies.
As O'Brien put it privately, "No one who isn't directly involved would
ever believe the incredible duplication and futility. We who participate,
and those who set up this crazy system, should be certified as lunatics.
It would be far cheaper for the public purse, and more efficient, if we
were locked up in asylums."
The stenotypist was concluding, schemes-like this Tunipah
deal-which will make huge profits for your company?"
"The objective of Tunipah," Humphrey responded, "is to provide service
to our customers and the community generally, as we always have, by
anticipating increased demands for electricity. Profit is secondary.,,
"But there will be profits," Birdsong persisted.
"Naturally. We are a public company with obligations to investors . . ."
"Big profits? Profits in the millions?"
"Because of the enormous size of the undertaking and the huge investment,
there will be issues of stocks and bonds, which could not be sold to
investors unless . . ."
Birdsong cut in sharply, "Answer 'yes' or 'no.' Will there be profits in
the millions?"
The GSP & L chairman flushed. "Probably-yes."
Once more his tormentor rocked back and forth on his heels. "So we only
have your word, Mr. Humphrey, about whether profits or service comes
first-the word of a person who, if this monstrous Tunipah fraud is
foisted on the public, stands to profit in every possible way."
"Objection," O'Brien said wearily. "That is not a question. It is a