Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-15
MORGAN UTILITIES
PLANS NEW DEAL
Negotiations on With Eastern
Associates for Complete
Seaboard Control.
Special Dispatch TO The Star.

WHICH yesterday dCQuucQ JAlc CkohVACA
Corporation from the Aluminium Co. Of
America, the General Electric Co. and
the du Pont interests, is negotiating for
Eastern Utilities Associates, Stone and
Webster afflliate, and an offer for ex-
change of stock is expected to be made
soon, it was indicated today in authori-
tative circles.
The gigantic j. p. Morgan Holding
Corporation, which was formed early
this year, by means of the Frontier
deal and the prospective Eastern Utili-
ties transaction, has assumed domi-
nant position in upper New York State,
which, in the opinion of public utility
men, is bringing the long-awaited East
ern Seaboard Super-power system closer
to realization.
To Link With Edison.
One Of the next steps, 1t is under
stood, will be the linking of the Niagara
Hudson system properties with the New
York Edison and Consolidated Gas
companies, thereby completing the
physical tie-up of seaboard properties.
The New York Edison Is already tied
up with the lines of the Public Service
System of New Jersey and power can
be transmitted from New York COM
panies to Pennsylvania.
Through its acquisition of the From
tier Corporation and the st. Lawrence
water power sites owned by that COM
pany, Niagara Hudson Power will be
in position to produce by water power
electricity that can be transmitted down
through the State to New York City.
The Frontier deal indicates a rap
prochement between the Morgan and
the Mellon interests of Pittsburgh, sum-
GENTLY important in itself to draw at
tention to the new alignment, which
came as a surprise to Wall Street. On
the basis of the news, stock Of the
Niagara Hudson Power Corporation be-
came very strong on the Stock Ex-
change yesterday.
Acquisition of Eastern Utilities AsSo-
ciates would provide an important ex-
tension of Niagara HudSon's interests
into New England. The company was
formed last year to consolidate three
companies serving Pawtucket. Woon-
socket and Central Falls in Rhode
Island and Brockton, Mass. An impor-
tant entering wedge would also be ac-
Quired by Niagara Hudson through own
ership of the company into the Black
stone Valley Gas & Electric Co. and the
Edison Electric Illuminating Co. of
Brockton, of which Eastern Utilities
Associates owns IS per cent of the COM
mon and capital stocks. and into the
Electric Light g. Power Co. of Abingdon
and Rockland. of which Eastern Utili-
ties Associates owns 81 per cent Of the
capital stock.
Controls So Per Cent.
Through these subsidiaries Eastern
Utilities Associates controls So per cent
of the Montauk Electric Co., which
operates in Somerset, Mass.
In April of this year Eastern Utilities
Associates, in conjunction with the New
England Power Association. sub
sidiary of International Power & Paper,
acquired a ma jority interest in the Fall
River Electric Light Co. Eastern Utili-
ties Associates stock is listed on the
securities market Of the New York
Produce Exchange.
Total assets of Eastern Utilities ASso-
ciates exceed $64 900. 900, while those of
Niagara Hudson. now exceed $780,
900, 900.
Gov. Roosevelt. when informed yes
terday of the frontier transacted said
he was doubtful whether the new inter-
ests in the company would rush to make
application for a permit to build dam
at Long SauN, in view of the fact that
Gov. Smith refused permit In 1925.
Through the deal by which Niagara
Hudson also agreed to acquire from the
aluminium company shares OF the ST.
Lawrence Securities Co., owning gener-
ating and distributing systems in st.
Lawrence County, N. Y, the Morgan
public utility interest control now Vir-
tually every important waterpower site
in New York State and through this
control exercise a dominant interest Of
about 80 per cent of the States water
power.
The formation of the Niagara Hudson
n
with some doubt by Gov. Roosevelt, who
several times referred the legality of the
operation to Attorney General Hamilton
Ward. Mr.. Ward found the deal legal,
but Gov. Roosevelt has pressed the in
quiry further through his personal at
torney and through missionaries on
power rates to the mayors of New York
municipalities.
Davis Elected Director.
The af1liation of the Morgan inter-
ests with the MELONS through the From
tier and st. Lawrence securities deal
Is further indicated by the fact that
Arthur v. Davis, chairman Of the
Aluminium Co., has been elected a di-
rector of the Niagara Hudson Power
Co. Others on the board include John
z. Zimmerman, president Of the United
Gas improvement Co. of Philadelphia,
~. +. L..
& Co., in which H. Edmund MacHold,
former Republican State chairman, has
an interest.
The Niagara Hudson Power Corpora
ton has been expanding rapidly since
its formation. It is understood that
negotiations for an exchange Of stock
between that company and the Rock
land Light and Power Co., first report
ed in the New York Herald Tribune on
July 26. may be consummated soon.
Rockland Light and Power is regarded
as important, although a relatively
small company, because of the strategic
position 1t occupies with respect to any
comprehensive Super-power system in
this part of the country.
The Mellon interests, through the
KopperS Gas System, Columbia Gas
and Electric, and the insult interests,
through holdings of the Middle West
Utilities in New England, all operate
in this heavily populated Northeastern
territory. The Niagara Hudson Power
Corporation is also interested In gas
properties and, through the acquisition
in July of substantial portion of the
outstanding stock of the Central Hud-
son Gas and Electric Corporation, i'm
mediately assumed importance In any
gas Developments that take place In
the State. The company also recently
acquired the Hudson Valley Gas and
Coke Co.
Companies brought into the Niagara
Hudson system through acquisition Of
st. Lawrence Securities stock from the
Aluminium Co. are known as the St.
Lawrence Power Corporation, the ST..
Lawrence Utilities Co, the Antwerp
Light and Power Co., the Norwood Light
and Power Co. and the Hammond Light
and Power Co.
FARM BOARD AUTHORIZES
MeAn ano PltonInAa nAAl