The Washington times., 1929-10-22
ANTI ME- RGER
LAW REPEAL
SOUGHT

Repeal Of the Lafayette anti
merger act will be sought by the
group of New York financiers who
early this year acquired control of
the stock of the Washington Gas
Light company by a majority pur-
chase, according to a report on the
transaction made to the Public
Utilities Commission by the Depart
ment of Justice, 1t was learned
today.
The holding group will then seek
to control the company directly
from New York instead Of indirectly
through the medium of an Invest.
ment trust" as Is now done.
Following the purchase of the
stock by New York interests, a
trust" was organized under the
laws of Massachusetts,, known as
the Seaboard Investment Trust,
which. in turn. holds the stock for
five large investment groups. The
commission, believing the anti
merger act had been violated, sought
a reported on the transaction from
the Justice Department.
Waited for Opinion
This report was made on Septem-
Der II. but was not made public
until today, as the commission has
been awaiting an opinion from Cor
poration Counsel Bride as to what
action to take ] ncase the law had
been violated.
The report recommended that the
District Commissioners institute
suit, in District Supreme Court, aues-
tioning legality of the sale. The
Commissioners will probably con-
slider the report at their meeting
tonight.
The Department of Justice states,
quoting F. S. Burroughs, director
of Harris. Forbes and Company, of
New York, dealers in investments
and public utilities securities;
Mr.. Burroughs advised that the
Seaboard Investment Trust is
makeshift arrangement and they
will not hesitate to place this STOCK
in a holding company after they
can effect repeal of the terms
of the anti-merger act, which is
now apparently directed solely
against the Washington Gas Light
Company; railroads and other pub
lie utilities have been removed from
operation of the statute by special
legislation"
The report goes on to describe
the connections of the five groups
for which the Seaboard Investment
Company was organized as a hold
ing corporation.
One group is connected with the
international Power and Paper
Corporation and Harris, Forbes &
Co. The International Corporation
was recently under fire in connec-
ton with purchases and attempted
purchases of newspapers.
Other holders are described as the
American Founders Group, of New
York; Bylleesby Group, of Chicago;
Chase Group, of New York, and
Schoellkopf, Hutton and Pomeroy.
Of New York and Buffalo.
All are described as dealers in
stocks and largely interested in
holding of public utilities securities.
A bullish market in bonds for
the next fifteen months was fore
cast today bv DR.. Warren F. Hick-
ernell. vice president of the At
Iantic and Pacific International Cor
pOration.
He declared, "In the immediate
future there will be less vigorous
activity on the New York Stock
Exchange and a slowing down in
the demand for credit in connection
with steel production, automobile
production and building construc-
ton which factors will produce
downward trend in money rates and
an upward trend in the bond mar
ket during the winter months
Leading financiers concur in this
view.
Hilleary G. Hoskinson, vice presi-
dent of the Riggs National Bank
has returned from the convent IN
of the American Bankers Associa-
ton in San Francisco.
Numerous local members of the
Investment Bankers Association of
America have returned to the city
from the convention recently held
in Quebec. Among these are: Paul
V. keyser, attorney for the asso-
citation; Charles Carroll Morgan, of
G. NJ. P. Murphy and Company,
Kenneth S. Wales, of Bonbright
and Company, and Y. E. Booker,
of Y. E. Booker and Company.
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