Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-12
GAS STOCK BUYERS
REVEAL IDENTITY
Five Investment Corpora.
tons Acquire Controlling
Interest in D. C.. Firm.
Continued From First Pagc.)


shares of the Washington Gas Light
stock
Own Controlling Interest.
II am a director of Harris. Forbes &
Co. dealers in investment securities. Fol
a number of years our company has
purchased and distributed TO the public
the bonds of the Washington Gas Light
Co., and during this period We have had
an excellent opportunity to become ia
miliar with the affairs of that company.
Some months ago We decided to form a
group of bankers and investors to &C
quire substantial interest in the stock
OF the Washington Gas Light Co., and
as a result we and our associates. At
present control substantial majority
of the stock of that company. 1t is our
opinion that the development of the
business of the Washington Gas Light
Co. has been restricted in the past by
the fact its capital structure, as limited
by its charter powers. is not such as to
permit it to raise adequate capital to
take full advantage of the business OPP
portunities and TO give the territory
served as broad a service as would be
desirable. We believe that with the new
capital which will be made available
through our group the Washington Gas
Light Co can greatly extend its useful
ness to the citizens of Washington and
at the same time increase the value Of
the equity represented by its stock.
las a medium for holding the stock
of Washington Gas Light Co. for the
beneficial interest of the group of bank
erS and investors headed by Harris.
Forbes & Co. the Seaboard Investment
Trust was formed. This trust is not IN
any sense public utility corporation or
holding corporation, but is trust
,Lar ND oNat tn
ration of trust appointing three trustees
to hold and control the shares of WASH
ington Gas Light Co. acquired for the
benefit of the banking group. The
powers of the trustees and their duties
are substantially similar to those OF
trustees appointed under will who are
named to administer the estate of
decedent.
Shares Are Redistributed.
1.-The shares OF beneficial interest in
the trust were subscribed for by a bank
ing group consisting of Harris. Forbes
& Co.. American Founders Corporation,
Schoollkopf, Hutton 81 Pomeroy, H. NJ.
Byllesby d Co. and Chase Securities
Corpora ton. These bankers have in
each case redistributed shares of benefi-
cial interest to individuals and invest
ment companies affiliated with them.
No individual, company or group owns
terest in this trust
Il have handed you a certified copy
of the declaration OF trust and a list
CT the holders of record of shares of
beneficial interest, and have explained
that the shares of Washington Gas
Light Co.. held by the trust, are for
convenience carried in the names of
various nominees of the trust. The
names OF these stockholders are avail
able to you at any time.
In answer to your question as to
the future policy of the trust in con-
nection with the acquisition of other
utility stocks or properties. 1 have re-
piled that Seaboard Investment Trust
was formed solely for the purpose of
acquiring and holding in a legal manner
the stock of Washington Gas Light Co.
and that it does not now own. and has
no intention of acquiring, other utility
stocks or properties.
The trustees under the provisions
OF the declaration of trust have full and
complete control of the stocks held BY
the trust, and it will be Harris. Forbes
& Co.'S policy to advise and cooperate
with the trustees in the management
of the trust and in the direction of the
affairs Of the Washington Gas Light
Co. to the extent permitted by the own
ership of the control of its stock
If you desire any further iSforma-
ton on this subject. will be glad to
furnish it,
Plan Great improvements.
Mr.. Burroughs told newspaper men
yesterday that the purchase was en-
gineered by the holding corporations in
order to secure the only large operating
company not already in the hands of
! a holding corporation. He said that
great Improvements would be made. the
rate schedule altered and efforts made
to sell gas for heating purposes. BY
this means. he said. he was confident
Il investors would reap profitable re-
| turns on the high price they paid for
the Stock-$l25 per share for $40 par
value stock.
As to the amount of money to be
spent on the improvement, or when it
would begin, Mr.. Burroughs was vague.
He said the situation must be studied
first. He said at first that the new
purchasers were not at all interested
in valuation of the company. now pend
ing in District Supreme Court Later,
however. he said he expected that the
commission would allow the company a
fair return on a fair valuation. He
| would not commit himself as to what
he considered a fair return.
Corporation Counsel William w. Bride
yesterday indicated dissatisfaction with
the statement of Mr.. Burroughs, but
withheld formal comment until after
the commission meeting.
Harris, Forbes & Co. are New York
bankers: the American Founders Cor
poration is New York investment
house; Schoellkopf Hutton & Pomeroy
is New York and Buffalo holding
corporation: N. H. Byllesby e. Co. is
a large holding corporation of New
York and Chicago. and the Chase Sc
curities Corporation is a subsidiary of
! the Chase National Bank of New York.