Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-01-22
WASHINGTON STOCK
SALE TO Be pROBED
Pearson's Acquisition Of T.
600 Shares OF Gas Light
Company Brings Action.

The recent acquisition, under APP
prevail Of the District Supreme Court, OF
1000 shares Of stock In the Washington
Gas Light Co. by Dane A. Pearson of
New York, who said he was represent
ing a group Of investors, will be off,
cially inquired into by the Public IT'LL
tiles Commission at its semi-weekly
meeting Thursday in light of the So
called La Toilette anti-merger law
which provides that sit shall be unlaw-
full for any foreign public utility cor
poration, or for any foreign or local
holding corporation directly OF
indirectly. to own, control, or hold or
vote stock or bonds Of any public util-
ity corporation organized under any
general Incorporation law or special act
Of the United States to do business in
the District Of Columbia"
The act, which Is section 81 of the
public utilities law Public No. 432, ap-
proved March 4, 1919 further holds
shat it shall be unlawful "for any pub
lie utility corporation organized or au-
thorized as aforesaid to sell or trans
fer any portion Of its stock or bonds to
any other public utility corporation or
any holding corporation whatsoever, un-
less expressly authorized by Congress so
to do: and every contract. transfer,
agreement to transfer. or assignment by
any said public utility corporation of
portion of its stock or bonds without
such authority shall be utterly void
and of no effect"
Ladue Comments on Stories.
Engineer Commissioner william B
Ladue said today that he had read the
stories of the acquisition of the stock at
$i25 per share by the New York buyer.
He said that he would confer with Cor
poration Counsel william w. Bride be-
tween now and Thursday, and ask Mr.
the purchase and advise the commission
as to what steps should be taken in
order to learn If any law has been
violated.
One Of the ways known to be under
consideration is the calling of public
hearing, at which officers Of the COM
pany would be required to testify as to
the holders Of stock In the concern. It
Is probable that the purchaser of the
stock also will be called to testify, If the
commission Is found to have the power
to compel his attendance.
There are 100000 shares Of stock Of
the gas company outstanding par value
of which is $40 q share. The anti
merger act provides that "the Supreme
Court Of the District Of Columbia shall
have Jurisdiction in equity to dissolve
any public utility corporation organized
to do business In the District of
Columbia for violation Of any provision
of this section" A limiting clause pro-
vides that in case the allegation of any
bill filed In court relates to the owner
ship of stocks or bonds of local cor
poration by any foreign corporation,
then 1t must be shown to the satisfac-
ton of the court that such ownership
includes at least 20 per cent of the
capital stock in the local corporation.
Sale Does Not Involve 20 Per Cent.
The purchase under scrutiny now
does not involve 20 per cent of the
stock, which would amount to $4,000
shares, but the inquiry planned will be
general and directed to discovering If
there Is any illegal ownership resulting
from this purchase, together with the
other recent sales Of stock on the local
Stock Exchange.
The recent 7,000-share sale was made
by Joseph Letter. as trustee Of the es-
tate OF Mary T. Letter.