Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-12
Corporation Counsel Is Not
Satisfied All Facts Have
Been Made Known.
IDENTITY OF COMPANIES
IN TRUST is REVEALED
Further Steps May Be Taken to
Obtain Information Believed
Lacking Regarding Sale.

Indications that the investigation into
the new ownership of the Washington
Gas Light Co. and its subsidiaries did
not close with the conference yester-
day between representatives of the own
ers and District officials were given to-
day by Corporation Counsel William w.
Bride, the general counsel of the Public
Utilities Commission.
While the identity of the new owners
vas disclosed at this conference. Mr..
Bride said he is not satisfied that all the
facts in connection with the recent
stock sale and the real owners had been
available and intimated that further
steps may be taken to secure the infor-
nation he believes is lacking. Whether
he intends to ask the Department OF
Justice to take up its suspended inves-
tigation in to the stock ownership could
not be learned. He limited, however.
that there might be different method
of procedure
Hasty Action Is Not Expected.
Mr.. Bride as we'll as members Of the
commission said they are still "mulllng
over" the situation as to the ownership
Of the gas company stock and do not
expect to take hasty action In de-
termining whether the stock was sold
in accordance with provisions OF the
anti-merger Law.
In the meantime the directors Of the
gas company met in regular monthly
session, declared the regular quarterly
dividend of 90 cents on each share OF
stock and adjourned without discussing
future policies or reported plans for
expanding the business.
New Director Elected.
The directors, however, filled one Of
the two existing vacancies on the board
caused by the stock transfer, by elect
ing Fred S. Burroughs of Harris,
Forbes d. Co. of New York, one of the
new owners, as successor TO James NJ.
Green.
The Utilities Commission is not ex-
pected to give further formal consid-
Grafton to the gas stock sale until its
regular meeting Monday. Maj. Gen.
Mason NJ. Patrick, chairman. and Har-
leigh H. Hartman, vice chairman. had
no comment to make, while Engineer
Commissioner William B. Ladue, the
third member, was closeted with the
board Of District Commissioners in
regular semi-weekly session.
Although Corporation Counsel Bride
has indicated he is not entirely salts
IleQ WIFI CuS VI llle COtlICICuCCs
PEOPLES Counsel Ralph B. Fleharty.
who also attended the meeting, seemed
to take an opposite view Of the trend
of events.
Fleharty said he doubted If any bene-
fetal result to the consumers could be
secured by further pursuing the question
of ownership, and expressed the opin-
ion that the new owners would give the
gas consumers of the District better
service at lower rates.
"I think that probably consumers who
now pay 80 and 40 cents a month VIII
be required to pay a larger minimum
charge" he declared, but this is proper,
as many are paying less than the cost
of the service and the loss is being
borne by other consumers"
The information yesterday as TO
the ownership was given voluntarily,
after several weeks delay, by e.
S. Burroughs of the firm of Harris,
Forbes g. Co., one of the purchasers,
and James Piper, the Baltimore cor
respondent for the Harris Forbes coun-
sci in New York, late yesterday.
The investment trust, according to
Mr.. Burroughs, was formed for the pur-
pose of holding and voting the stock,
| and for no other. It owns no other
stock, nor does it contemplate the ac-
QUESTION of any other.
Anti-Merger Violation Questioned.
The commissions interest in the hold
ing of the stock rests in the question as
whether the holding is a violation of
the La Toilette anti-merger act pro-
hihiting foreign holding corporations to
purchase, directly or indirectly, or to
| own, control or vote more than 20 per
cent of the stock in any local utility.
According to Mr.. Burroughs, the in
vestment trust. known as the Seaboard
Investment Trust. owns approximately
10000 of the 10000 voting shares
of the gas companys stock. The
beneficial interest in this is equally
divided among the five holding corpora
tions, and therefore each controls less
than 20 per cent of the gas company's
! total stock The investment trust, Mr..
Burroughs said, is not itself corpora
ton. and therefore the holding Is not
in violation of the law.
After a lengthy conference with the
commission and its legal aides yester-
day, Mr.. Burroughs reduced his infor-
nation to writing, and his letter, the
text of which follows, was made public
late yesterday:
LAS suggested by your commission, I
take pleasure In giving you a summary
of the statement I made to the COM
mission this morning in connection with
the ownership of approximately 10000
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