Indicates Matter Stricken
Indicates New Matter

The Senate assembled at 11:00 A.M., the hour to which it stood adjourned and was called to order by the ACTING PRESIDENT, Senator PATTERSON.

TO: CLERK OF THE SENATE

CLERK OF THE HOUSE
FROM: THE JOINT LEGISLATIVE COMMITTEE TO REVIEW CANDIDATES FOR THE SOUTH CAROLINA PUBLIC SERVICE COMMISSION
DATE: MARCH 12, 1991

In compliance with the provisions of Act 119 of 1975, and Act 167 of 1979, it is respectfully requested that the following information be printed in the Journals of the Senate and the House.

Donald H. Holland
Chairman

Pursuant to Act 119 of 1975, this committee was organized to consider the qualifications of candidates seeking election to the Public Service Commission from the Sixth Congressional District. The Merit Selection Panel submitted the following nominees to the Joint Legislative Screening Committee for its consideration:

SIXTH DISTRICT
Warren D. Arthur, IV
Erick B. Ficken

Having completed the investigation as required by the Act, the committee, by this report, respectfully submits its findings to the members of the General Assembly for their consideration.

This committee has investigated each of the applicants, has conducted a public hearing on Tuesday, February 26, 1991, and has duly considered the legal qualifications of each of the applicants. Based thereon, the committee finds all of the nominees to be legally qualified as candidates for the Public Service Commission.

Senator Donald H. Holland, Chairman
Senator John C. Hayes, III
Senator Jefferson M. Long, Jr.
Senator Kay Patterson
Rep. Thomas E. Huff
Rep. Maggie Wallace Glover
Rep. Richard M. Quinn, Jr.
Rep. Timothy C. Wilkes

SENATOR DONALD H. HOLLAND, CHAIRMAN

SENATOR JOHN C. HAYES, III

SENATOR KAY PATTERSON

SENATOR JEFFERSON MARION LONG, JR.

REPRESENTATIVE MAGGIE WALLACE GLOVER

REPRESENTATIVE TIMOTHY C. WILKES

ALSO IN ATTENDANCE:

MICHAEL N. COUICK, ESQUIRE,

COMMITTEE LEGAL COUNSEL

DEBBIE HAMMOND, ADMINISTRATIVE ASSISTANT

SENATOR HOLLAND: IF YOU GENTLEMEN ARE READY, WE WILL CALL THE MEETING TO ORDER. THIS IS THE JOINT LEGISLATIVE SCREENING COMMITTEE OF CANDIDATES FOR THE SIXTH CONGRESSIONAL DISTRICT SEAT ON THE SOUTH CAROLINA PUBLIC SERVICE COMMISSION. IT'S MY INFORMATION THAT TWO CANDIDATES WERE CERTIFIED TO US BY THE MERIT SELECTION PANEL: MR. WARREN D. ARTHUR, IV, OF HARTSVILLE, AND MR. ERICK B. FICKEN OF MYRTLE BEACH, SOUTH CAROLINA. IT'S THE PURPOSE OF THIS COMMITTEE NOW TO SCREEN THESE CANDIDATES TO SEE IF THEY SHOULD BE CHOSEN BY THE GENERAL ASSEMBLY. WE HAVE ALL THE MEMBERS OF THE COMMITTEE PRESENT, I BELIEVE, EXCEPT FOR TWO MEMBERS OF THE HOUSE OF REPRESENTATIVES. WE ARE GOING TO PROCEED AT THIS TIME BY OUR COUNSEL, MR. COUICK, CALLING WHICHEVER OF THESE--I BELIEVE HE WILL CALL MR. ARTHUR FIRST AND HE WILL PROCEED TO ASK HIM THE USUAL QUESTIONS THAT WE ASK AT A TIME LIKE THIS, AND THEN WE WILL LET THE DIFFERENT MEMBERS OF THE COMMITTEE ASK ANY QUESTIONS THEY HAVE.

MR. COUICK: MR. ARTHUR, IF YOU WILL MAKE SURE THAT MICROPHONE IS TURNED ON.

MR. ARTHUR: I BELIEVE IT IS.

(WARREN D. ARTHUR, IV, CANDIDATE FOR THE SIXTH CONGRESSIONAL DISTRICT SEAT ON THE PUBLIC SERVICE COMMISSION, FIRST BEING DULY SWORN BY MR. COUICK TO TELL THE TRUTH, THE WHOLE TRUTH, AND NOTHING BUT THE TRUTH, TESTIFIES AS FOLLOWS:)

Q. MR. ARTHUR, WE HAVE GIVEN YOU A COPY OF YOUR PERSONAL DATA QUESTIONNAIRE SUMMARY THAT OUR OFFICE HAS PREPARED. HAVE YOU HAD A CHANCE TO REVIEW IT THIS MORNING?
A. YES, I DID.
Q. THIS SUMMARY WILL BE PRINTED IN THE JOURNAL OF THE HOUSE AND THE SENATE PRIOR TO THE ELECTION. DO YOU HAVE ANY CORRECTIONS THAT YOU WOULD LIKE TO MAKE BEFORE IT'S PRINTED?
A. NO.
Q. IS THERE ANY OBJECTION ON YOUR PART TO MAKING THAT SUMMARY PART OF THE TRANSCRIPT OF THIS HEARING?
A. NO.

1. Warren D. Arthur, IV

Home Address: Business Address:

516 Woodland Drive 516 Woodland Drive

Hartsville, SC 29550 Hartsville, SC 29550

2. He was born in Hartsville, South Carolina, on July 7, 1948.

Social Security Number: ***-**-****.

3. S.C. Driver's License Number: *********;

S.C. Voter Registration Number: 1 271 924.

4. He was divorced from Jamie F. Arthur in 1989. He has five children: Daphne Dupree, age 21; Allison Forrester, age 18; Jacqueline DuPree, age 13; Catherine Faser, age 11; and Warren Dupree, V, age 9.

5. Military Service: S.C. Army National Guard, Rank E2, Honorably Discharged in 1970.

6. He attended Wingate Junior College (Wingate, NC) from 1966 to 1968, Associate of Science; Campbell College (Buies Creek, NC) from 1968 to 1970, Bachelor of Science in Business. Non-degree seeking graduate work included: Columbia Bible College and Seminary, 1988; University of South Carolina, 1988 to 1989; and Liberty University (Lynchburg, VA), 1989 to 1990.

7. He served on the Hartsville City Council from 1973 to 1976 and in the S.C. House of Representatives from 1976 to 1986.

8. He lost his 1986 re-election bid for the S.C. House of Representatives.

9. He worked as an oil jobber from 1970 to 1981; was an insurance agent from 1982 to 1985; had an interest in a restaurant business and a company that produced and distributed hair care products.

11. In 1985, he was charged with DUI, but was found innocent in court.

14. He has been included in several lawsuits by creditors of W. D. Arthur Oil Company and Pee Dee Food Systems, Inc.

16. Health is excellent.

17. He was hospitalized twice in 1984 for hip replacement surgery.

21. He is a recovered alcoholic, and is active in Alcoholics Anonymous and a group called Alcoholics for Christ.

22. Professional organizations: Past President, National Conference of Insurance Legislators; Member, Leadership South Carolina Alumni Association.

23. Civic, charitable, etc. organizations: President, Alcoholics for Christ Incorporated (S.C.); Chaplain of the Gideons, Hartsville Camp; Program Director and Member, Baptist Men (Lakeview Baptist Church, Hartsville); American Red Cross, 56 Day Club; Member (until 1987), Darlington County Task Force for Progress; Vice Chair, S.C. Baptist for Life.

25. Five letters of reference:

Mr. Rick L. Beasley

President, Carolina Bank and Trust

P.O. Box 59

Darlington, SC 29532

(803) 393-5472

Reverend Don Purvis

Pastor, Lakeview Baptist Church

202 Lakeview Boulevard

Hartsville, SC 29550

(803) 332-8427

Mr. Thornton W. Crouch

President, Mutual Savings and Loan

Association, F.A.

P.O. Drawer 1700

330 West Carolina Avenue

Hartsville, SC 29550

(803) 383-3050

John G. "Jack" Wellman

28 Creek Side Drive

Murrells Inlet, SC 29576

(803) 236-5500

The Honorable Wilbur Brown

Mayor

P.O. Box 1137

Lake City, SC 29560

(803) 394-5553

Q. THANK YOU. MR. ARTHUR, WE HAVE HAD A CHANCE TO REVIEW NUMEROUS RECORDS REGARDING YOUR PERSONAL BUSINESS AFFAIRS AS REPORTED TO US BY SLED, THE CREDIT BUREAU, AND OTHERS. THE RECORDS OF ALL THE APPLICABLE LAW ENFORCEMENT AGENCIES ARE NEGATIVE. WHEN I SAY "NEGATIVE," I MEAN THERE ARE NO ENTRIES THERE; NOT NEGATIVE IN THE QUALITATIVE SENSE. ARE YOU AWARE OF ANY OTHER RELEVANT INFORMATION THAT HAS NOT BEEN FOUND BY SLED OR OTHERS?
A. NO, I'M NOT.
Q. THE RECORDS OF THE SOUTH CAROLINA DEPARTMENT OF HIGHWAYS AND PUBLIC TRANSPORTATION ALSO APPARENTLY ARE NEGATIVE. ARE YOU AWARE OF ANY OTHER VIOLATIONS THERE?
A. NO, I'M NOT.
Q. ALL RIGHT; THANK YOU, MR. ARTHUR. WE HAVE NOT DETECTED, NOR HAVE THE INVESTIGATIONS DETECTED, ANY BREACHES OF ETHICAL OR PROFESSIONAL CONDUCT BY YOU. ARE YOU AWARE OF ANY THAT HAVE NOT BEEN DETECTED BY THE INVESTIGATION?
A. NO.
Q. YOU NOTED THAT YOUR PRESENT STATE OF HEALTH IS EXCELLENT. ARE THERE ANY COMMENTS THAT YOU WOULD LIKE TO MAKE ON YOUR HEALTH AT THIS TIME?
A. AS FAR AS I KNOW, IT'S STILL EXCELLENT.
Q. OKAY. DO YOU HAVE ANY HEALTH IMPAIRMENTS THAT WOULD LIMIT YOUR ABILITY TO PERFORM THE DUTIES OF THE PUBLIC SERVICE COMMISSION?
A. NO, SIR.
Q. YOUR STATEMENT OF ECONOMIC INTEREST INDICATES YOU HAVE NO CONFLICTING OWNERSHIPS, ASSOCIATIONS, OR TRANSACTIONS, WHICH WOULD INCLUDE CORPORATE AFFILIATIONS, PARTNERSHIPS, ET CETERA. IS THERE ANYTHING THAT YOU WOULD LIKE TO UPDATE THE COMMITTEE ON AS FAR AS OWNERSHIP AND PARTNERSHIP INTERESTS?
A. NO. YOU KNOW, IN MY PUBLIC SERVICE COMMISSION MERIT SELECTION APPLICATION I PUT IN THERE MY GRANDMOTHER OWNED SOME STOCK IN CP&L AND IN ANOTHER UTILITY REGULATED BY THE PSC AND WE'RE GOING TO TRY TO DISPOSE OF THAT SHOULD I GET ELECTED. AND I LIVE WITH MY GRANDMOTHER AND SHE HAS SINCE THEN HAD A STROKE. I DON'T KNOW IF I WILL EVER LIVE WITH HER AGAIN. I HOPE I DO.
Q. IS THERE ANYTHING ELSE THAT YOU THINK WOULD BE IMPORTANT IN TERMS OF CONSIDERING YOUR QUALIFICATIONS THAT YOU WOULD LIKE TO NOTE TO THE COMMITTEE THAT'S NOT ALREADY NOTED ON THE PERSONAL DATA QUESTIONNAIRE?
A. WELL, I DON'T KNOW OF ANYTHING SPECIFIC. I WILL BE GLAD TO ANSWER ANY QUESTIONS.

MR. COUICK: MR. CHAIRMAN.

Q. MR. ARTHUR, ONE OR TWO THINGS. YOU SAY YOU OWN SOME CP&L STOCK OR---
A. MY GRANDMOTHER.
Q. ALL RIGHT; DO YOU INTEND TO ONE DAY GET THAT STOCK OR?
A. WELL, IF SHE WERE TO DIE, I WOULD IMAGINE I WOULD EVENTUALLY GET SOME. WE ARE GOING TO TRY TO DISPOSE OF THAT IF WE CAN.
Q. HAVE YOU PEEPED AT HER WILL OR?
A. WELL, I WOULD IMAGINE IT WOULD ALL BE DIVIDED; BUT I DON'T KNOW, I HAVEN'T SEEN HER WILL.
Q. WHAT ARE YOU PRESENTLY DOING?
A. I WAS WORKING FOR THE GOVERNOR'S OFFICE AND I WAS FORCED, REQUIRED TO RESIGN IN ORDER TO SEEK THIS POSITION; SO, I HAVE BEEN BASICALLY SEEKING THIS POSITION SINCE SEPTEMBER THE 4TH. I AM INVOLVED IN A LOT OF OTHER CHRISTIAN WORK, ACTIVITY, WHICH KEEPS ME BUSY BUT MY---
Q. THAT'S SOLELY A VOLUNTEER PROPOSITION?
A. YES.

SENATOR HOLLAND: ANY QUESTIONS BY ANY OTHER MEMBERS? REPRESENTATIVE WILKES.

REPRESENTATIVE WILKES: MR. CHAIRMAN.

Q. WARREN, WERE YOU A SOLE SHAREHOLDER OR A MAJORITY SHAREHOLDER IN W.D. ARTHUR OIL COMPANY?
A. YES, SOLE.

SENATOR HOLLAND: ANY OTHER QUESTIONS BY THE COMMITTEE MEMBERS?

Q. MR. ARTHUR, YOU ARE THE FOURTH?
A. YES.
Q. I NOTICE, SIR, THAT THE--YOU SAY YOU ARE DIVORCED AND THAT CAME WHEN, SIR?
A. WELL, ACTUALLY I'M DIVORCED TWICE; BUT MY LAST DIVORCE WAS FROM JAMIE ARTHUR AND THAT WAS IN--I BELIEVE IT WAS FINAL IN NOVEMBER OF '89.
Q. ACTUALLY YOU BROUGHT THE DIVORCE? AS I READ IT HERE, IT LOOKS AS THOUGH YOU HAD BROUGHT THE DIVORCE; IS THAT RIGHT?
A. NO, SIR. NO, SIR.
Q. IT WAS BROUGHT AGAINST YOU BY YOUR WIFE?
A. YES.
Q. AND I ASK YOU WHAT THE GROUNDS WERE FOR THE DIVORCE?
A. SEPARATION, I BELIEVE.
Q. SEPARATION. AND THE CHILDREN, SIR, ARE THEY THE CHILDREN OF ONE WIFE OR TWO WIVES OR---
A. TWO WIVES.
Q. ---ARE YOU LIKE ME, YOU'VE GOT SOME OF MINE, SOME OF YOURS, AND SOME OF OURS?
A. MY FIRST TWO WIVES; AS A MATTER OF FACT I WAS--MY FIRST WIFE WAS FROM MYRTLE BEACH, DOTTIE FORRESTER, AND THEY NOW LIVE IN CHARLESTON.
Q. AND ALL FOUR OF THE CHILDREN ARE BY HER?
A. NO, THE OLDEST TWO, DEEDEE AND ALLISON, ARE BY DOTTIE AND THEN THE OTHER THREE ARE FROM MY SECOND WIFE. IF IT MAKES ANY DIFFERENCE TO Y'ALL, I'M SEEKING RECONCILIATION IN THAT MARRIAGE.
Q. GREAT, SIR. LET ME INQUIRE, THE ALCOHOLISM, SIR, WHEN DID YOU RECOVER?
A. WELL, I HAD MY LAST DRINK ON AUGUST THE 4TH, I THINK, OF 1986.
Q. AND I BELIEVE THE OIL COMPANY AND THE RESTAURANT AND THE HAIR DISTRIBUTING COMPANY, THEY ALL WENT KAPUT, SIR?
A. WELL, WE--WELL, YES, ESSENTIALLY. WE CLOSED UP THE HAIR COMPANY AND WE ACTUALLY HAD A SURPLUS OF FUNDS IN THAT.
Q. DID YOU HAVE ANY SURPLUS HAIR? I MIGHT BE INTERESTED IN SOME OF THAT, SIR.
A. WELL, WE HAD SOME PRODUCTS. BUT THE PEE DEE FOOD SYSTEMS, I LOST A GREAT DEAL OF MONEY IN THAT PERSONALLY AND THAT WAS ONE OF THE THINGS THAT CAUSED ME ALL KINDS OF PERSONAL FINANCIAL PROBLEMS. AND WE WERE ABLE TO GET SOMEBODY BASICALLY TO TAKE THAT OVER AND TO BAIL US OUT, BUT IT WAS NOT WITHOUT LOSING A WHOLE LOT OF MONEY FIRST. AND THEN W.D. ARTHUR OIL COMPANY, WE CLOSED IT UP.
Q. WOULD YOU SAY, SIR, THAT THE ALCOHOLISM CAME ABOUT AS A RESULT OF THE BUSINESS FAILURES OR THAT THE BUSINESS FAILURES CAME ABOUT AS A RESULT OF THE ALCOHOLISM?
A. THE BUSINESS FAILURES CAME ABOUT AS A RESULT-- PARTIALLY AS A RESULT OF THE ALCOHOLISM. I WAS AN ALCOHOLIC AND THE BUSINESS DIDN'T HAVE ANYTHING TO DO WITH THAT; BUT I WAS DOING WELL IN BUSINESS WHEN I BECAME AN ALCOHOLIC.
Q. I'VE GOT ONE QUESTION, SIR, THAT I'VE GOT TO ASK THAT'S MORE OR LESS CURIOSITY. WELLMAN FROM MURRELLS INLET, WHO IS HE, THE WELLMAN FROM MURRELLS INLET?
A. JACK WELLMAN.
Q. IS HE CONNECTED WITH WELLMAN INDUSTRIES?
A. WELL, HE WAS THE FORMER CHAIRMAN OF WELLMAN INDUSTRIES.

SENATOR HOLLAND: SENATOR PATTERSON.

Q. JUST CURIOSITY; WHAT DOES MR. WELLMAN DO NOW?
A. HE'S IN PLASTICS RECYCLING.
Q. HE'S NOT ASSOCIATED WITH THAT BUSINESS OVER IN JOHNSON OVER NEAR LAKE CITY?
A. NO.
Q. HE SOLD ALL THAT?
A. RIGHT. WELL, HE HAD SOME FINANCIAL DIFFICULTIES, TOO, AND THAT WAS PART OF THAT; BUT HE'S DOING WELL NOW.
Q. MR. RICK BEASLEY, IS THAT DAVID'S DADDY?
A. NO, THAT'S DAVID'S BROTHER.

SENATOR PATTERSON: JUST CURIOSITY, THAT'S ALL. SENATOR HOLLAND: ANY OTHER QUESTIONS FROM ANY OTHER MEMBERS OF THE COMMITTEE?

Q. LET ME ASK YOU SOMETHING, WARREN; HAVE YOU EVER BEEN INVOLVED IN ANY HEARING BEFORE THE PSC CONCERNING RATES?
A. YES, SIR.
Q. WAS THAT WHILE YOU WERE A MEMBER OF THE GENERAL ASSEMBLY?
A. YES, SIR.
Q. WHAT WAS YOUR ROLE IN THAT?
A. WELL, WHEN I GOT ELECTED THERE WASN'T A CONSUMER ADVOCATE THAT REPRESENTED THE CONSUMER BEFORE THE PSC AND THERE WAS A LOT OF PUBLIC DISTRUST ABOUT WHAT WAS GOING ON WITH THE PSC. ONE OF THE REASONS THAT I GOT ELECTED IS THAT I PROMISED MY CONSTITUENTS THAT I WOULD MAKE SURE THAT THEY GOT REPRESENTATION BEFORE THE PSC AND THE INSURANCE COMMISSION, AND I WAS KIND OF A, YOU KNOW, CONSUMER-ORIENTED LEGISLATOR DURING THAT TIME AND I--SINCE THERE WAS NOBODY ELSE--WENT BEFORE THEM AND I INTERVENED ON BEHALF OF THE CONSUMER. AND, YOU KNOW, AND I THINK THAT AT THE BEGINNING I WAS JUSTIFIED AND IT HAD A GOOD EFFECT ON WHAT WAS GOING ON. HOWEVER, LATER ON POLITICALLY I CONTINUED TO INTERVENE AND BECAME A--AFTER WE GOT A CONSUMER ADVOCATE, I THINK I MIGHT HAVE BEEN WRONG TO CONTINUE TO PURSUE IT FOR POLITICAL--I THINK I WAS PURSUING IT FOR POLITICAL REASONS LATER ON.
Q. BUT YOU HAVE NO PROBLEMS WITH WORKING WITH THE PSC NOW, DO YOU?
A. NO, I DON'T. I THINK THAT I WOULDN'T HAVE BEEN--I WOULDN'T BE FIT TO SERVE IN THIS POSITION IF I HAD NOT CHANGED MY LIFE, IF I WERE NOT A DIFFERENT PERSON TODAY THAN I WAS BACK THEN. WE DON'T NEED A CONSUMER ADVOCATE ON THE PUBLIC SERVICE COMMISSION; WE NEED SOMEBODY THAT CAN BE FAIR WITH EVERYBODY, WHO CAN MAKE--GET ALL THE INFORMATION AVAILABLE AND TRY TO MAKE A WISE AND SOMETIMES HARD, BUT FAIR, DECISION.

SENATOR PATTERSON: MR. CHAIRMAN.

SENATOR HOLLAND: SENATOR PATTERSON.

Q. DID I HEAR YOU SAY THAT WE DON'T NEED A CONSUMER ADVOCATE ON THE PUBLIC SERVICE COMMISSION?
A. NOT SOMEBODY THAT REPRESENTS JUST THE CONSUMER INTEREST, I MEAN TO BE ONE-SIDED. I THINK YOU'VE GOT TO HAVE SOMEBODY WHO CAN LOOK AT BOTH.
Q. LIKE A JUDGE.
A. YES, I DO; I'LL BE HONEST WITH YOU, I HAVE A TENDER HEART--A TENDER PLACE IN MY HEART FOR CONSUMERS. I MEAN, I THINK A PERSON WHO IS ON THE COMMISSION OUGHT TO HAVE THAT; I MEAN, OUGHT TO HAVE A CONCERN ABOUT THE UTILITIES AND THE FINANCIAL HEALTH OF THE UTILITIES, ALSO.

SENATOR PATTERSON: OKAY.

SENATOR HOLLAND: ANY OTHER QUESTIONS? SENATOR LONG.

Q. WOULD YOU SAY, SIR, THAT YOUR INVOLVEMENT AS A CONSUMER ADVOCATE FOR POLITICAL REASONS WOULD HAVE COLORED YOUR ABILITY AND AFFECT YOUR ABILITY TO BE ABLE TO DECIDE IT FAIRLY AND SQUARELY?
A. NOT TODAY, SIR. IF I HADN'T CHANGED MY LIFE COMPLETELY, IT PROBABLY WOULD HAVE; BUT I'M A DIFFERENT PERSON TODAY THAN I WAS BACK THEN.

SENATOR HOLLAND: MR. COUICK, ANY FURTHER QUESTIONS?

MR. COUICK: NO, SIR.

SENATOR PATTERSON: MR. CHAIRMAN.

SENATOR HOLLAND: SENATOR PATTERSON.

Q. I KEEP HEARING YOU SAYING HOW YOU CHANGED YOUR LIFE; IS THAT THE COMMON VERNACULAR "BORN AGAIN CHRISTIAN"?
A. YES, SIR.
Q. IS THAT WHAT THAT IS?
A. YES, SIR, I QUIT DRINKING ON AUGUST THE 5TH AND I GOT SAVED AUGUST THE 10TH; I FOUND JESUS CHRIST AND I'VE BEEN TRYING TO LET HIM CONTROL MY LIFE FROM THAT POINT ON, AS BEST I CAN.
Q. WHAT ABOUT THIS, I SAW THIS THING ABOUT THIS LIBERTY UNIVERSITY OF LYNCHBURG, LYNCHBURG, VIRGINIA, I THINK IS THAT ANYTHING TO DO WITH--WHO RUNS THAT?
A. WELL, YOU PROBABLY KNOW JERRY FALWELL, HE'S THE---
Q. THAT'S WHO I THOUGHT IT WAS.
A. YES, THAT'S WHO IT IS AND I'M NOT SURE EXACTLY WHAT HIS TITLE IS; BUT THAT COLLEGE HAS A VIDEO CORRESPONDENCE PROGRAM AND I--THAT SEEMED TO FIT MY SCHEDULE AND MY ABILITY TO PURSUE SOME ADDITIONAL GRADUATE COURSES; SO, THAT'S THE REASON I TOOK SOME COURSES FROM THEM.

SENATOR PATTERSON: ALL RIGHT.

SENATOR HOLLAND: YOU MAY BE EXCUSED, SIR.
A. THANK YOU, SIR.

SENATOR HOLLAND: MR. FICKEN.

(ERICK B. FICKEN, CANDIDATE FOR THE SIXTH CONGRESSIONAL DISTRICT SEAT ON THE PUBLIC SERVICE COMMISSION, FIRST BEING DULY SWORN BY MR. COUICK TO SPEAK THE TRUTH, THE WHOLE TRUTH, AND NOTHING BUT THE TRUTH, TESTIFIES AS FOLLOWS:)

Q. MR. FICKEN, WE HAVE GIVEN YOU A COPY OF YOUR PERSONAL DATA QUESTIONNAIRE SUMMARY THIS MORNING. HAVE YOU HAD AN OPPORTUNITY TO REVIEW IT?
A. YES, I HAVE.
Q. IS THERE ANYTHING THAT YOU WOULD LIKE TO CORRECT ON THAT SUMMARY AT THIS TIME?
A. I THINK THAT TO THE BEST OF MY KNOWLEDGE, I THINK EVERYTHING IS THERE OTHER THAN THE ORGANIZATION, THE SOUTH CAROLINA LAW INSTITUTE, THAT I'M AFFILIATED WITH AND A MEMBER OF, I OVERLOOKED IT AND DIDN'T PUT IT ON THERE; BUT IF THERE'S ANYTHING ELSE, IT'S JUST--I DON'T KNOW WHAT IT IS.
Q. IS THERE ANY OBJECTION TO MAKING THAT SUMMARY PART OF TODAY'S TRANSCRIPT?
A. NOT AT ALL.

1. Erick B. Ficken

Home Address: Business Address:

116 Fairway Lakes 600-27th Avenue North

Myrtle Beach, SC Myrtle Beach, SC
2. He was born in Augusta, Georgia, on October 30, 1940.

Social Security Number: ***-**-****.

3. S.C. Driver's License Number: *********;

S.C. Voter Registration Number: 1 252 680.

4. He was married to Margaret Friar on March 1, 1969. They have two children: Margaret Gray, age 15; Rebecca Clara, age 8.

5. Military Service: U.S. Army Reserve, Aiken Reserve Center, Military Intelligence--Sgt. (BR 147757776), October 1962 to April 1963--active duty, April 1963 to October 1968--Reserves.

6. He attended Newberry College from 1958 to 1962, Bachelor of Science in Economics.

7. He was elected to the Myrtle Beach City Council from 1975 to 1977; elected as Mayor of the City of Myrtle Beach from 1978 to 1985; appointed to the S.C. Water Resources Commission from 1984 to 1990.

8. He lost the 1980 Democratic Primary Election for U.S. Congress--Sixth District.

9. Other occupation, business, etc.: Standard Savings & Loan, 1963 to 1966; IBM Corp., 1966 to 1971; Palmetto Properties & Inv., 1971 to 1989; A. G. Edwards, 1981 to 1988; Merrill Lynch, 1988 to present.

14. As Mayor of Myrtle Beach, he was sued once or twice.

16. Health is excellent.

22. Professional organizations: Myrtle Beach Board of Realtors; Business Ethics Forum--Coastal Carolina.

23. Civic, charitable, etc. organizations: St. Phillips Lutheran Church; Myrtle Beach Rotary Club, The Palmetto Conservation Foundation; Newberry College Board of Trustees; Area Council on Transportation; Carolina Bays Task Force; South Carolinians for Better Transportation; Myrtle Beach Chamber of Commerce; Chairman, Blue Ribbon Committee on Beach Front Management; Chairman, 1990 YMCA Fund Drive; United Way of Horry County; The Alpha Group--Horry County; Dunes Golf and Beach Club.

25. Five letters of reference:

Dr. Wayne Beam

Coastal Council

AT&T Building

Columbia, South Carolina

(803) 737-0880

Walter Standish

NCNB

Oak Street

Myrtle Beach, South Carolina

(803) 946-2100

H. E. "Pete" Pearce

404-39th Avenue, North

Myrtle Beach, South Carolina

(803) 626-8334

J. McDonald Wray

S.C. Municipal Association

(803) 799-9574

Lynn H. Youmans, Jr.

P.O. Box 54

Furman, SC 29921

(803) 625-2902

Q. THANK YOU. MR. FICKEN, WE HAVE HAD A CHANCE TO REVIEW NUMEROUS RECORDS ON YOUR PERSONAL AND BUSINESS AFFAIRS, INCLUDING YOUR CREDIT RECORD AND ALL REPORTS OF LAW ENFORCEMENT AGENCIES; THE REPORTS OF THE APPLICABLE LAW ENFORCEMENT AGENCIES ARE ALL NEGATIVE INDICATING THAT THERE HAVE BEEN NO OFFENSES. IS THERE ANYTHING THAT YOU WOULD LIKE TO UPDATE THIS COMMITTEE ON TODAY THAT WE, FOR SOME REASON, HAVE NOT FOUND?
A. NO, SIR.
Q. IN ADDITION, THE JUDGMENT ROLLS OF YOUR RESIDENT COUNTY ALSO WERE NEGATIVE. IS THERE ANYTHING YOU WOULD LIKE TO UPDATE US ON ABOUT JUDGMENTS?
A. NO, SIR.
Q. MR. FICKEN, YOUR STATEMENT OF ECONOMIC INTEREST INDICATES THAT YOU HAVE NO CONFLICTING OWNERSHIPS, ASSOCIATIONS, OR TRANSACTIONS. I BELIEVE IT INDICATES THAT YOU ARE NOW EMPLOYED BY MERRILL LYNCH COMPANY.
A. THAT'S CORRECT, I AM.
Q. COULD YOU EXPLAIN THE DUTIES THAT YOU HAVE WITH MERRILL LYNCH?
A. AT THE PRESENT TIME I'M A FINANCIAL CONSULTANT WITH MERRILL LYNCH DEALING WITH A NUMBER OF CLIENTS. THE LARGER PERCENTAGE OF MY BUSINESS IS WHAT WE CALL MERRILL LYNCH CONSULTS ACCOUNTS, WHEREBY I MATCH THE CLIENT WITH AN OUTSIDE PROFESSIONAL MONEY MANAGER AND THAT MONEY MANAGER MANAGES THE CLIENT'S MONEY AND I MONITOR THOSE TRANSACTIONS, AND IT'S A COMPLETELY DISCRETIONARY PROGRAM. IT'S MY THOUGHT THAT IF I WERE SUCCESSFUL IN THIS PROCESS OF ACHIEVING A SEAT ON THE PUBLIC SERVICE COMMISSION THAT I WOULD CONCENTRATE MY EFFORTS WITH MERRILL LYNCH IN THE TIME THAT I HAD ALLOTTED TO THE CONSULTANT BUSINESS SO THAT I WOULD NOT BE MAKING ANY DECISIONS ON WHAT STOCKS TO BUY OR WHAT STOCKS TO SELL FOR ANY CLIENTS THAT I HAVE.
Q. MR. FICKEN, IS YOUR COMPENSATION FROM MERRILL LYNCH IN ANY WAY DEPENDENT UPON AN OVERALL PORTFOLIO HELD BY MERRILL LYNCH COMPANY THAT WOULD INCLUDE UTILITY HOLDINGS?
A. YOU MIGHT WANT TO REPHRASE THAT QUESTION AGAIN, OR REPEAT IT.
Q. I'M NOT SURE HOW YOUR COMPENSATION WORKS WITH MERRILL LYNCH OR HOW IT WOULD WORK IN THE FUTURE. IS IT IN ANY WAY DEPENDENT UPON AN OVERALL BASKET PORTFOLIO HELD BY THE COMPANY WHICH MAY OR MAY NOT INCLUDE UTILITY STOCKS?
A. IF I UNDERSTAND YOUR QUESTION CORRECTLY, I THINK THE ANSWER TO THAT IS NO. MY COMPENSATION IS BASED ON THE ACTUAL COMMISSIONABLE TRANSACTIONS THAT I HAVE BETWEEN MYSELF AND MY CLIENTS. IN THE CASE OF THE CONSULTS PROGRAM THAT I MENTIONED WHERE THE OUTSIDE MONEY MANAGERS HAVE THE DISCRETION TO MANAGE THE CLIENT'S MONEY, THAT IS WHAT IS CALLED A WRAPPED FEE ACCOUNT; THERE IS ONE FLAT FEE CHARGED TO THE ACCOUNT THAT INCLUDES ALL COMMISSIONS, ALL CUSTODIAL FEES, ALL ACCOUNT FEES, AND ALL OF THOSE THINGS. MERRILL LYNCH RECEIVES A PORTION OF THAT; THE MANAGER RECEIVES A PORTION OF THAT; AND I, AS THE FINANCIAL CONSULTANT, RECEIVE A PORTION OF THAT, REGARDLESS OF WHAT'S IN THE ACCOUNT.
Q. DO YOU HAVE ANY OTHER STOCK OR PARTNERSHIP INTERESTS THAT ARE NOT LISTED THAT YOU WOULD LIKE TO TELL THE COMMITTEE ABOUT TODAY?
A. PERSONALLY HELD STOCK?
Q. YES, THOSE THAT WOULD HAVE AN INFLUENCE ON THIS COMMITTEE'S DECISION, I.E. THOSE THAT ARE UTILITY-RELATED?
A. NO, I DO NOT HAVE ANY.
Q. YOU MENTIONED YOUR AFFILIATION WITH THE SOUTH CAROLINA LAW INSTITUTE. CORRECT ME IF I'M WRONG; I BELIEVE THAT'S AN INSTITUTE WITH THE GENERAL PURPOSE TO DRAFT LEGISLATION AND RECOMMEND CHANGES IN SOUTH CAROLINA LAW. DO YOU INTEND TO CONTINUE TO HAVE YOUR MEMBERSHIP OF THIS ORGANIZATION?
A. I WOULD HAVE TO EVALUATE THAT AND SEEK SOME GUIDANCE ON THAT AS TO WHETHER THAT WOULD BE CONSTITUTED AS A CONFLICT.
Q. SINCE YOU FILED YOUR PERSONAL DATA QUESTIONNAIRE ABOUT A MONTH AGO, IS THERE ANYTHING ELSE THAT YOU'D LIKE TO UPDATE THE COMMITTEE ON AS REGARDS YOUR HEALTH OR ANY OTHER PERSONAL AFFAIRS, OR WHATEVER, THAT MAY BE OF INTEREST TO YOU?
A. I THINK EVERYTHING IS THE SAME AS WHEN THE STATEMENT WAS FILED.

MR. COUICK: THANK YOU, MR. FICKEN.

MR. CHAIRMAN.

SENATOR HOLLAND: ANY QUESTIONS?

REPRESENTATIVE WILKES: MR. CHAIRMAN.

SENATOR HOLLAND: REPRESENTATIVE WILKES.

Q. ERICK, WHEN YOU WERE MAYOR OF MYRTLE BEACH, WHAT ENTERPRISE UTILITY FUNDS DID MYRTLE BEACH OPERATE?
A. WE OPERATED BOTH A WATER AND SEWER FUND THAT WAS OUR ENTERPRISE FUND.
Q. YOU DIDN'T HAVE GAS AND ELECTRIC?
A. WE WERE NOT AN ELECTRIC CITY AND NO GAS.
Q. SO YOU SEE NO RELATIONSHIPS THAT DEVELOPED THERE THAT IN ANY WAY CONFLICT WITH YOUR JUDGMENT ON THE COMMISSION?
A. NO, I THINK CERTAINLY THE EXPERIENCE THAT I HAD DEALING WITH THE RATES AND THE BOND ISSUES AND THINGS OF THE CITY AS THE WATER AND SEWER DEPARTMENT PROBABLY WOULD LEND TO MY ABILITIES TO SERVE ON THE PUBLIC SERVICE COMMISSION, BUT I DON'T SEE ANY RELATIONSHIP THAT WOULD CONFLICT WITH THAT.

REPRESENTATIVE WILKES: THANK YOU.

MR. COUICK: MR. CHAIRMAN.

Q. MR. FICKEN, I BELIEVE THE QUESTION WAS WITH YOUR NOTING OF YOUR PARTICIPATION WITH THE LAW INSTITUTE, WAS THAT SOMETHING THAT YOU JUST FAILED TO LIST AND THAT YOU MENTIONED TODAY?
A. THAT'S CORRECT. IT'S NOT ON--IT IS NOT ON THE PERSONAL DATA QUESTIONNAIRE.

SENATOR HOLLAND: SOUTH CAROLINA WHAT?

MR. COUICK: LAW INSTITUTE.
A. I HAD FORGOTTEN THAT I WAS ON THAT. THAT GROUP ONLY MEETS PERIODICALLY AND THEY DO THEIR WORK BY COMMITTEE AND I HAD FORGOTTEN, QUITE FRANKLY, I WAS INVOLVED WITH THE SOUTH CAROLINA LAW INSTITUTE UNTIL I GOT A COPY OF THE PROPOSED ETHICS LEGISLATION THAT THE LAW INSTITUTE DID FOR THE SENATE'S CONSIDERATION, I THINK, IN THE MAIL SINCE I FILED THE PERSONAL DATA QUESTIONNAIRE.

SENATOR HOLLAND: REPRESENTATIVE GLOVER.

Q. MR. FICKEN.
A. YES, MS. GLOVER.
Q. ON YOUR PERSONAL DATA QUESTIONNAIRE, NUMBER 14, YOU MENTIONED THAT YOU WERE SUED ONCE OR TWICE. WAS THAT IN YOUR ROLE AS MAYOR OR WAS THAT PERSONAL?
A. NO, THAT--IN MY ROLE AS MAYOR, I THINK I PROBABLY WAS NAMED PERSONALLY AS MAYOR BUT THAT WAS CERTAINLY ALL MUNICIPAL ACTIVITY.
Q. IN ITEM NUMBER 23 ON THAT SAME SHEET, AS ONE OF THE CIVIC ORGANIZATIONS, YOU HAVE THE ALPHA GROUP OF HORRY COUNTY; WHAT IS THE ALPHA GROUP?
A. I PUT HORRY COUNTY IN THERE TO DISTINGUISH IT FROM ANY OTHER ALPHA GROUP THAT ANYONE MAY BE FAMILIAR WITH.

SENATOR PATTERSON: I WANT TO HEAR THIS ANSWER. TALK SLOW NOW SO I CAN HEAR YOU.
A. THE ALPHA GROUP IN HORRY COUNTY, AS THE SENATOR KNOWS, IS A SMALL GROUP OF ABOUT 25 OR 30 BUSINESS INDIVIDUALS WHO HAVE BEEN WORKING AND TRYING TO DO THINGS TO PROMOTE CONCILIATION AND GROWTH IN HORRY COUNTY; AND WE WERE--ALREADY HAD THAT NAME BEFORE THE OTHER NAME SURFACED, SO WE GAVE SOME CONSIDERATION TO CHANGING IT BUT DECIDED AGAINST IT.

SENATOR LONG: MR. CHAIRMAN, I MIGHT SAY THAT THE PRESENT EDITOR OF "THE STATE NEWSPAPER" AND THE NEWS EDITOR OF "THE SUN NEWS" WAS A MEMBER OF THE ALPHA GROUP, SO IT'S QUITE DIFFERENT FROM THE ONE THAT WE HAVE ALL BEEN HEARING ABOUT.

Q. MR. FICKEN, JUST FOR CURIOSITY, I NOTICE YOU RAN FOR CONGRESS IN 1980.
A. YES, THAT WAS A RATHER ILL-FATED MOVE ON MY PART BUT IT WAS A LEARNING EXPERIENCE, NONETHELESS.
Q. WHO ALL WAS IN THE RACE? I'M TRYING TO REMEMBER NOW.
A. WELL, THERE WAS A CROWD OF US: REPRESENTATIVE HARWELL WAS IN THE RACE. JOHN JENRETTE WAS IN THE RACE. A FELLOW NAMED BRAISINGTON STORMED THE SIXTH DISTRICT DURING THAT TIME AND ONE OTHER--MAGGIE, DO YOU REMEMBER WHO THE OTHER ONE WAS? I CAN'T REMEMBER THE---
Q. IT WASN'T DICK ELLIOTT BECAUSE HE WAS BY HIMSELF.
A. NO, IT WASN'T. THERE WERE FIVE OF US IN THE DEMOCRATIC PRIMARY AND---

SENATOR PATTERSON: WAS THERE ANYBODY LEFT TO VOTE IF THERE WERE THAT MANY IN THE RACE?
A. WELL, UNFORTUNATELY THERE WERE A FEW AND I WAS--I WILL HAVE TO ADMIT THAT I WAS NOT LAST, BUT I WILL HAVE TO TELL YOU IN ALL HONESTY THAT I WAS NOT FAR FROM IT.
Q. WHO WON THE PRIMARY?
A. CONGRESSMAN JOHN JENRETTE WON THE PRIMARY. THAT WAS DURING THE PERIOD OF ABSCAM AND CONGRESSMAN JENRETTE, I THINK, GOT VISITED IN FEBRUARY AND ALL THAT WENT ON AND HE RAN THE--THE DEMOCRATIC PRIMARY WAS IN JUNE AND I THINK JOHN GOT INDICTED THE WEEK AFTER THE PRIMARY WAS OVER. I KIND OF THOUGHT MAYBE HE WOULD GET INDICTED BEFORE THE PRIMARY, BUT IT DIDN'T HAPPEN THAT WAY AND HE WENT ON TO RUN AGAINST--JOHN JENRETTE WENT ON TO RUN AGAINST JOHN NAPIER, I BELIEVE IT WAS, AND JOHN NAPIER WAS SUCCESSFUL IN THAT RACE. BUT THAT WAS AN ILL-FATED OPPORTUNISTIC MOVE ON MY PART.
Q. I DON'T KNOW, I THINK EVERYBODY NEEDS A LITTLE TASTE OF POLITICS. I THINK THAT'S WHAT'S WRONG WITH ABOUT HALF THE JUDGES ON THE BENCH, THEY NEVER HAVE HAD TO RUN FOR PUBLIC OFFICE; AND I WOULD LOVE TO TELL THEM ABOUT IT.

SENATOR LONG: HERE, HERE, I AGREE.
Q. I WOULD LOVE TO TELL THEM ABOUT IT. I THINK EVERYBODY OUGHT TO HAVE A LITTLE EXPOSURE TO PUBLIC LIFE.
A. I WOULD AGREE WITH THAT, SIR.
Q. I WOULD ASK YOU ONE QUESTION ABOUT THE SOUTH CAROLINA LAW INSTITUTE; DID IT EVER RECOMMEND ANY LEGISLATION CONCERNING THE REGULATION OF PUBLIC UTILITIES OR REFORMING THE PUBLIC SERVICE COMMISSION OR ANYTHING LIKE THAT?
A. IF IT DID, I DO NOT--I AM NOT FAMILIAR WITH IT. I DO NOT KNOW.
Q. WHAT'S THAT GROUP THAT'S ALWAYS RATING US UP HERE. IT DOESN'T OPERATE SORT OF LIKE THE POLICY COUNCIL, DOES IT?
A. NO, I DON'T THINK THAT'S THE SAME GROUP.

Q. TALKING ABOUT POLICY, ARE YOU A PART OF THE POLICY COUNCIL?
A. NO, SIR, I AM NOT.
Q. I'M TRYING TO GET SOMETHING ON YOU.

REPRESENTATIVE WILKES: HE'S A MEMBER OF THE ALPHA GROUP; THAT'S ENOUGH.
A. I'LL TAKE CREDIT FOR THE ALPHA GROUP, IF THAT WILL DO YOU.

SENATOR HOLLAND: ANY FURTHER QUESTIONS?

Q. EXPLAIN, IF YOU WILL, TO US WHAT THE ALPHA GROUP IS.

SENATOR PATTERSON: YES, I WANT TO HEAR THAT, TOO.
A. WELL, IT IS A GROUP OF ABOUT 25 BUSINESS PEOPLE IN MYRTLE BEACH WHO MEET PERIODICALLY TO DISCUSS ITEMS OF INTEREST FOR THE COUNTY. WE RECENTLY MET WITH THE CHAIRMAN OF COUNTY COUNCIL AND THE NEWLY ELECTED CHAIRMAN OF COUNTY COUNCIL AND PLEDGED OUR SUPPORT IN TRYING TO HELP THEM ACCOMPLISH SOME OF THE THINGS THAT WE NEED TO ACCOMPLISH IN HORRY COUNTY. WE ARE PRESENTLY WORKING WITH A GROUP FROM COASTAL CAROLINA AND THE UNIVERSITY OF SOUTH CAROLINA SCHOOL OF PUBLIC AFFAIRS WITH A GRANT FROM THE KNIGHT FOUNDATION TO PUT TOGETHER AN EDUCATIONAL PROGRAM FOR LEADERSHIP TO BUILD LEADERSHIP AND BUILD A CONSENSUS IN HORRY COUNTY; AND I THINK, AS THE SENATOR AND I HAVE TALKED ABOUT THAT, I DON'T KNOW ABOUT IN YOUR HOME COUNTIES, BUT IN HORRY COUNTY THAT'S MUCH NEEDED. AND IT'S JUST A GROUP THAT HAS AN INTEREST IN THE COMMUNITY AT HEART IN TRYING TO WORK FOR THAT.

SENATOR LONG: I WANTED YOU TO SAY THAT WORD "CONSENSUS" ONE MORE TIME FOR HORRY COUNTY; WE NEED THAT.

SENATOR HOLLAND: ANY FURTHER QUESTIONS?

SENATOR HOLLAND: THANK YOU, MR. FICKEN.
A. THANK YOU.

SENATOR HOLLAND: AT THIS TIME WE'LL ENTERTAIN A MOTION TO GO INTO EXECUTIVE SESSION.

SENATOR PATTERSON: SO MOVED.

SENATOR HOLLAND: THE COMMITTEE IN EXECUTIVE SESSION CONSIDERED ONE THING THAT I'LL MENTION TO YOU CANDIDATES THAT CONCERNS YOU; THIS ELECTION WAS INITIALLY SET FOR MARCH 13TH AND WE FIND THAT SUBSEQUENT TO THE TIME OF SETTING THIS HEARING THAT THE BUCK-A-CUP CRIPPLED CHILDREN'S GROUP WILL BE OCCUPYING THE JOINT ASSEMBLY HALL, I MEAN, THE HOUSE AT THAT PARTICULAR TIME AND WE HAVE BEEN ASKED TO CARRY THE ELECTION TO THE NEXT WEEK WHICH IS THE 20TH; SO, IF IT'S THE WILL OF THE COMMITTEE THEN THAT WILL BE DONE AND, SO, UPON PROPER MOTION MADE FROM SOME MEMBER OF THIS COMMITTEE NOW, THIS ELECTION WILL BE HELD ON MARCH 20. SO THERE IS A MOTION. ANY OBJECTIONS TO SETTING IT FOR MARCH 20TH? BEING NONE, LEGISLATION WILL BE INTRODUCED IN EACH BODY TO THAT EFFECT. NOW THE CHAIR WOULD ENTERTAIN A MOTION IN REGARD TO THE QUALIFICATIONS OF THE CANDIDATES.

SENATOR PATTERSON: I SO MOVE THAT THE TWO CANDIDATES BE VOTED AS QUALIFIED.

REPRESENTATIVE GLOVER: SECONDED.

SENATOR HOLLAND: ANY OBJECTIONS?

SENATOR HOLLAND: THIS COMMITTEE CERTIFIES BOTH CANDIDATES AS BEING QUALIFIED TO STAND FOR ELECTION TO THE PUBLIC SERVICE COMMISSION. IN THE INTEREST OF MR. ARTHUR, THE RECORD WILL HAVE TO NOTE THAT THERE IS--AS WE HAVE ALWAYS DONE, WARREN, YOU HAVE TO NOTE THAT THERE'S SOME OUTSTANDING JUDGMENTS UNLESS THEY HAVE BEEN SATISFIED PRIOR TO THE PRINTING OF THE REPORT. (ALL SUCH JUDGMENTS WERE SATISFIED SUBSEQUENT TO THE HEARING.)

(WHEREUPON, THE HEARING WAS CONCLUDED AT 10:07 A.M.)

(On motion of Senator HOLLAND, with unanimous consent, ordered printed in the Journal.)

At 11:05 A.M., on motion of Senator SHEALY, the Senate adjourned to meet next Tuesday, March 19, 1991, at 12:00 noon.

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