Evening star., 1917-05-04
GAS LIGHT Merger
PERMIT GRANTED
Utilities Board Consents for
Washington Company to Buy
Georgetown Concern.
IS NO BAR TO RATE MAKING

The public utilities commission of the
District today gave permission for the
OF the Georgetown Gas Light
Company by the Washington Gas Light
Company.
This gives the District one gas COM
pany; 1t gives the entire population gas
for fuel and Illuminating at rs cents
per thousand cubic feet: one responsible
company, and consummates negotia-
tions that have been OF and on at ir-
regular intervals for the last ten years.
The price stipulated is $141.25 per
share for 2.470 shares, this being the
entire capital stock Of the company.
In addition to $3.50 shares already car
ried on the books of the Washington
Gas Light Company at a cost of $172.-
oo4. Authority also is given the COM
pany to expend not more than $4,000
in the purchase OF options.
In approving the purchase the com
mission says that nothing in the order
shall be construed as invalidating or
interfering in any way with the fair
valuation for rate-making purposes re-
Gently announced for both companies
by the commission.
Georgetown Shareholders Consent.
It is stated that the Washington
company has secured the signatures Of
the shareholders of the Georgetown
company to an agreement to sell their
entire holdings. and that the purchase
will be consummated at once.
Some years ago. when the late John
r. Mclean was president Of the Wash
tngton Gas Company. controlling in
terest in the Georgetown Gas Company
was purchased-3.540 shares out Of q
total Of 5000 shares.
Control was exercised by the Wash
ington Gas Company for some years. or
amendment forbidding one utility cor
poration in the District from holding
more than 20 per cent Of the capital
stock OF any other public utility COM
pany.
Oficials Of the Georgetown Gas Com
pany then declined to recognize the le-
gality of the holdings of 3.540 shares
Of Georgetown Gas stock by the larger
filed suit. claiming that the 3.540
shares should be ordered returned to
the Georgetown company's treasury
and ordered cancelled.
The court held that the stock would
be sold. but has not ruled on the method
holding that they should be allowed to
buy parts Of the holdings, and the
Washington Gas Company that the
stock should be sold with the best re-
suits en- bloc.
Securing Consent Of Minority.
In the interval between the court de-
cision and a few weeks ago, the
Washington Gas Company, through its
president. Howard 8. Reside, has
been making efforts to secure the con-
sent of the minority holders of the
Georgetown company to agree to q
sale. Once before an option had been
obtained but not exercised.
It was difficult matter to secure the
cptepn.s and Ma ,Rpeeids had to enlist
the,ssrvfces Of several bankers to help
him bring the negotiations to a close,
he having prAXiOualy obtained the as
surance from the utility commission
that it was favorable to the project. which
could not have been contaminated with
out its approval.
The two gas companies date back to
early Washington for their incorpora-
ton. the Washington company being
organised July 8. 1S48. and the George
town July 20. 1884. Both have the same
capital today that they had then, $2,-
100000 for the former and $15o,o00 for
the latter. but the market value Of the
former Is now $72 share. face value
$40: and Of the latter on the sale basis
tali5ation being responsible for high
price. together with the fact that the
minority holders believe that great DOS
sibilities exist, provided they could buy
sufficient of the 3.540 shares to give
them continued control. On its dividend
basis Georgetown Gas would sell
around so.
Directors Of the Companies.
The present directors Of the Georre-
town Gas Company are Robert d.
Weaver. George L. Nicholson, H H.
Flather. Charles P. Williams, William
A. Leetch and Maurice E. Weaver.
Directors Of the Washington company
are Howard S. Reeside. James NJ. Green,
Ord Preston. Joseph Letter. j. o. Nell
benny and Guy F. Whiting
Before the recent arbitrary cut in
price Of gas by Congress the product
was being sold at IS cents a thousand
cubic feet by the Washington Gas
Company in its territory east of Rock
creek. and at 81 per thousand west of
that line. The cut was to rs and s5, re-
spectively. Now to all the rate will be
Is cents.