Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-06-14
FIGHT TO CONTROL
UTILITIES STARTED
Banking Groups in Battle for
Supremacy In Eastern
Field.
special dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, June 1+One phase
Of the public utility mergers now TAX
ing form In this State and to be under
the same control rs those already con-
summated In New jersey and In Penn
sylvania Is the competition between two
powerful operating and financial groups
for control Of the public utility industry
| IN the eastern territory.
It was learned that the group repre-
sented in the United Corporation, which
some months ago suddenly turned up
as the owner of majority interest In
the United Gas d Improvement Co. Of
Philadelphia and as the largest single
stakeholder in the Public Service Cor
poration of New Jersey, had not plan
ned to 20 further for the time being in
| its consolidation program. It has ap-
parently been hurried into q broader
plan for making alliances in New York
State by the recent purchase for the
account of the Associated Gas q Elec-
trio Co. of the public utilities repre-
sented by the Rochester Gas 81 Electric
Corporation and overtures that were
being made by the concern for other
properties In the central and western
sections of the State.
Planning Control.
The United Corporation is now nego-
tiating for control Of several public
utility groups In the region around
Buffalo, in Northern New York, and In
the Hudson and Mohawk Valleys. With
these it would control practically the
entire public utility industry between
New York City and Buffalo, with the
~ hal tn ha
ritory. It is believed that terms Of
exchange of securities have already
been arranged between the United Cor
poration and the Buffalo, Niagara &
Eastern Power Corporation, the North
eastern Power Corporation, the Mo-
hawk-Hudson Power Corporation, the
Central Hudson 4, Gas Electric Corpo-
ration, the Eastern States Power Cor
poration and the Rockland Light q
Power Co.
Together these six groups have assets
aggregating nearly $500, 100000. Con-
troll OF them. In addition TO the proper
ties already owned in New Jersey and
Pennsylvania by the United Corporation,
would lift the latter into the ranks OF
the five or six largest companies in
point Of capital and assets in the United
States.
Eventually 1t Is expected that a close
WORKING arrangement VIII De maze De-
tween the United interests and those
of the Consolidated Gas Of New York
and the Brooklyn Edison, the latter with
companies that control the power and
light situation on Long Island.
Morgan Takes Lead.
In the financing Of this great group
of public utilities the lead has been
taken by j. p. Morgan and by their
associates, Drexel 81 Co. of Philadelphia.
This firm of bankers has assumed the
same ranking position within recent
months In the public utility field that 1t
obtained In the industrial world 30
years ago when IL organized and
financed the United States Steel Cor
poration and later became the banker
for the General Motors Corporation In
the intermediate period 1t has heldethe
same relative rank in the financial az
fairs of American railroads. (
The interesting point OF this today Is
that although enormous resources are
being brought together by the consoliL
dation Of national and State banks and
trust companies, the. private banking
house IL still able to hold It's own In the
field Of corporation financing and to
dictate the terms on which the largest
consultations Of the past 10 years are
now being arranged.