Evening star., 1928-05-01
BIG MERGER BAIT"
FUND IS CHARGED
]. J. Noonan Says S12,000,-
600 Power Reserve Is Being
Used to Influence Deal.

AS the largest minority stockholder in
the Washington Railway g. Electric Co,
John J. Noonan of this city charged be-
fore the House District committee to-
day that the North American Co.. seek
ing control of the electric power here,
is waiting to "gobble up" $4,000. 900 in
reserve funds Of the Potomac Electric
Power Co deposited in local banks.
This sum. representing a series Of
cash reserves In various funds, is being
kept In local banks. Mr.. Noonan inti-
mated. to influence their support of the
merger.
AS tbs North American CO. indirectly
controls the Potomac Electric Power Co
through its stock holdings IN the Wash
iugton Railway g. Electric Co. Mr.
Noonan declared it was his information
that the outside utility company is
ready to take over this SI2 000, 900 in
reserve as soon as the merger Is sane
toned.
"s7s,eOo,OOO Profit"
Expressing his anxiety that he and
other minority stockholders were going
declaration that the North American
SIS. .000.00 out of the merger.
Representative Gibson of Vermont in
terrupted to remind him that the North
American Co. already has made a
profit Of $4,000, 600 out Of its stock in
the local traction company" Mr.
Gibson put Vice Chairman Harrison
Brand of the Public Utilities Commits
sion through rather severe grilling as
to the efforts Of that body to inquire
into the relations Of the North Ameri-
can Co. Its stock holdings here and
intent with regard TO the merger. The
committeeman joined with Mr.. Noonan
IN declaring that the North American
Co. had contributed TO a jackpot TO in
tiuence public and legislative opinion
and he asked Col. Brand If he was
familiar with the investigation now be-
ing made by the Federal Trade COM
mission
When Col. Brand replied to the con-
tTarY Gibson told him he would md
some astonishing revelations" concern
ing the operations OF public utilities in
the report
Brand said the commission had ac-
cepted the statement of Harley P, VIII
son relative 10 the stock holdings of
the North American Co. which he ad-
mltted gave it practical control" over
the Washington Railway & Electric Co.
He declared the commission regarded
an independent inquiry as immaterial.
Could Not Sell Stock.
Mr. Noonan stated he owned 1900
shares OF stock III the Washington Rail-
way & Electric Co. on which he placed
value of $1,000 q share. He declared
ne had accumulated these over 20 years.
and in view Of the merger, he had be-
come alarmed over the control TO be
exercised by the North American Co,
when his attention had been called 70
the Federal Trade Commission report.
Acting ON the advice OF Moody'S repre-
sentativeS, he had endeavored Co sell
his stock without avail He declared he
was willing 20 sell at $500 II he could
md a purchaser,
$500 II he could find a purchaser.
Once the North American Co. gets
control OF the new merged company.
Noonan charged that the Public utili-
ties Commission viii find IL has nothing
more TO do with traction matters here
and would have 60 take It's medicine"
Commissioner Brand was Questioned
by Gibson as 20 the effect the merger
would have on individual stockholders
Of the Washington Railway S Electric
Co,
SIs0 a Share.
Brand explained that they would still
retain ownership Of their stock. one
share uf stock being eNchansed for three
and half shares In the new transit
(Contlnued ON paSe i. Column ~