Spirit of Jefferson. [volume] (Charles Town, Va. [W. Va.]) 1844-1948, 1922-07-04
NORTHERN VA. POWER COM.
PANY BOUGHT BY GREAT
CORPORATION.

CORPORATION.
Announcement has been made of
the purchase of the Potomac Public
Service Company, formerly the Ha-
gerstown and Frederick Railway
Company, by the American Water
Works and Electric Company. The
sale was rather unexpected as it was
not even rumored that it was being
contemplated.
The offer was made public at
meeting of some of the larger hold
ers of the common stock of the COM
pany held at Hotel Braddock a few
days ago. The attractiveness of the
offer submitted and the advantages
to the community reverting from the
Identification of these large and we'll
known public service interests were
carefully considered and the opinion
of those present was unanimous in
the conclusion that the communities
interest in the line of the present
and future electrical development
can be best served by the sale of the
controlling interest in the local
properties to tn American Water
Works and Electric Co., which at
all times has back of it large corps
of the best trained engineers and
operating staff in the country
The offer submitted was $50 per
share for the common stock, par
value $50 and the offer will be made
all of the stockholders, large and
small, but is conditioned upon the
acceptance by at least 10 per cent
of the stockholders. 1t is under
stood that over 10 per cent of the
stockholders have already consented
the offer to all of the stockholders.
The pacing of the responsibility
for the financial and operating man.
agument of the company in strong
hands such as the American Water
Works & Eectric Co., is of vital i'm
portance to the community. 1t will
not eliminate the interest of the To-
cal people in the securities, and es-
pecially the preferred stock of the
company and the fact that respon-
sible concern is willing to pay
comparatively large sum of money
for the common stock of the company
indicates clearly the value of the
preferred stock and other securities
which are preferred to the common
stock. The preferred stock has paid
continuous dividends since it was is
sued in 1917 an dis now on a z per
cent basis, but the Company has
never declared dividends on the COM
mon stock.
One of the favorable considera-
tions of the offer submitted was the
fact that the purchaser desires the
continuance of local interests with
their advice and cooperation in the
further development of the proper
ty. 1t will be understood from this
that there will be no change in the
management of the company for the
present the same officers and board
of directors continuing in the direc-
ton of the affairs of the company.
The Hagerstown end Of this gigan-
tic power company had its beginning
back in 1896 when Judge M. L.
Keedy was the mayor of Hagers-
town. Their activities eliminated in
the street railway now operated in
that city.
Later the Hagerstown system was
operated with Mr.. Holzaphel as
president, and the Frederick end
operated as an independent system,
Emory l.. Coblentz as president
Both companies had power troubles
and this brought about consolidation
of the two roads in 1913 and the
raising of what was then considered
an immense amount of capital for
the erection of a monster power
plant at Security. With the erection
of this plant power troubles for both
roads ceased and since then expan-
sions and developments have come
rapidly. Mr.. Coblentz was president
of the consolidated company and
Mr.. Holzaphel vice-president.
The first branching out into sur
rounding fields was when the Frost
burg Light and Power Company was
acquired. This plant was develop
ed and extended into the rich coal
mining field about that town and to
a wonderful business being done
there.
Then came the acquisition of the
Martinsburg Power Company, with
the magnificent water powers on the
Potomac river afforded by Dams No.
and 5.
Later the company acquired the
Chambersburg, Greencastle and
Waynesboro Railway Company,
which served those towns with cleo
trio car service and also with power
and light.
Later the Northern Virginia Pow
er Company was purchased. This
was the most extensive territory ac-
quired in any single purchase and
reaches as far down in Virginia as
Stephens City, taking in all of the
Winchester Valley region and goes
as far north as Great Capon. 1t in
cludes a wonderful water power on
the Shenandoah River and also on
the Great Capon River and big
auxiliary steam plant at Millville.
The new company controls plants
throughout the states and is one of
the largest in America.