Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-01-19
NEW YORKER BUYS
GAS LIGHT STOCK
Letter Estate Gets Approval
of Sale of 1000 Shares
to Outside interests.

Seven thousand additional shares OF
Washington Gas Light stock have been
acquired by D. A. Pearson, a New York
flnancier, through a court decision
rendered late yesterday by Justice
Bailey in the Supreme Court of the
District of Columbia. The terms of the
ruling permit Joseph Letter and other
beneficiarieS under the will of the late
Mary Letter to sell this block of gas
company stock. The price paid by Mr..
Pearson Is $l25 per share, the highest
figure yet recorded.
Purchase of this large block of stock
comes In connection with efforts which
have been carried on several months
by out-of-town interests seeking con-
troll OF the local company. Transfer of
the 1000 shares to Mr.. Pearson will
make him one of the large shareholders
in the company, but will not carry con-
troll with 1t. While the New York
f1nancier refuses to state how much
stock he actually holds, it is generally
understood among bankers that he will
have to obtain many more large blocks
before control Of the local utility will
pass from its present management.
Furnace Plan RumOred.
1t was stated several weeks ago that
Middle West utility interests were the
real forces seeking to buy stock control
through Mr.. Pearson. The New York
man. however, issued a statement in
which he said he was representing
group of private investors who believed
the stock to be an extra good purchase
and also thought the company could be
made to increase Its earnings to a very
much larger amount Washington
bankers, however, believe that any
group of private investors would be
willing to sell their stock to q large
utility company provided they were
offered a generous profit.
Reports have been in circulation here
for months regarding what out-of-town
interests proposed to do in the way of
expanding the company's property,
should they obtain control. One re-
port said it was planned to spend
$2o, 900, 600 in laying new mains all
over Washington, in which to carry a
cheaper grade of gas for heating pur-
poses. At present gas for all uses gees
through the same mains. The belief
was expressed that campaign to in
stall gas furnaces in great numbers
would be reflected in an immense in
crease in earnings.
Before leaving Washington for New
York last night, Mr.. Pearson express
ed satisfaction over the amount of
stock he has so far obtained. He has
spent much time in Washington for
several months and has interviewed
many or the largest stockholders in the
Washington Gas Light Co. personally
and made direct offers for their stock
He also has visited the trust officers in
several local banks with reference In
purchasing stock tied up in estates.
Two Moves Under Way.
Two separate moves by out-of-town
interests TO obtain control of the gas
company are now under way. G.. Bowie
Chapman OF Hartman & Co. is acting
for utility company. Mr. Chapman
has withheld the name of this COM
pany, but he has made an offer III
rectly to the officers of the COMPANY
for the stock His price also was under
stood 10 be around $125 per share. The
Washington broker said a few DAYS ago
that the law preventing out-of-toWn
interests from owning more than 40
per cent OF the stock in any local pub
nc utillty was technicality holding the
matter up just now.
During the past week the stock has
climbed to a new high mark on tbs
Washington Stock Exchange, selling at
1922 Tor the first time. Recent sales
have been in small lots, but the stock
has gained nearly 10 points in about
three weeks. 1t was up to 1O6 before
the Christmas holidays and then re-
acted to 100. Recently it has shown
much more strength.
Ord Preston. president of the Wash
ington Gas Light Co., had no comment
to make today on this latest transfer
of stock. He was also silent on the
offer made direct to officials of the
company by the interests represented
by G. B. Chapman.
1t can be stated, however, from con-
versation with other company officials
that Mr. Preston Is opposed by the man
agement of the company passing out
of Washington. He also believes that
any offer for the stock should be made
TO all the shareholders and not to the
largest ones only. considering 1t unfair
to leave the smaller stockholders "out
on The ends Of 0 limb Of a tree"