Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-26
NEW LEAD SUPPLIED
UTILITIES BOARD
IN GAS FIRM PROBE:
Learns Harris Forbes Com
pany Negotiating for
Vast System.
PLANS TO INVESTIGATE
PROBABLE INTEREST HERE
Company's President Also Member
of Directorate of Washington
Light Organization.

A new lead in the investigation Of
the ownership of the Washington Gas
Light Co. and its subsidiaries was fur
nished the Public Utilities Commission
today in reports from New York that
the Harris Forbes interests have under
taken the creation of vast public util-
ity system, rivaling any now existing in
the United States.
The reports followed an announce
ment by F. S. Burroughs of Harris d
Forbes Co. and president OF the PUBIC
Utility Holding Corporation OF America
of entering into an agreement to &C
uuire the holdings of The E. w. Clark
interests of Philadelphia in the Portland
Electric Power Co. of Oregon. This COM
pany, serving Portland and vicinity, Is
said to have consolidated assets of more
than $50 ,oO0, 900 and annual gross earn
ings in excess of $l3,000,000.
Burroughs on Board.
The only interest the Utilities Com
mission has in the activities of the Pub
lie Utility Holding Corporation is its
relationship to the Seaboard Investment
Trust, which was claimed to have been
formed for the purpose OF holding and
voting the 10000 shares Of the Wash
w. oNOShh -
july for a group of New York bankers
and investors. headed by the Harris
Forbes interests. Burroughs, the presl-
dent of the Public Utility Holding Cor
poration, was elected a director OF the
gas company shortly after its acquisi-
ton by the Seaboard Investment Trust.
The Utility Commissions inquiry into
the transfer of the gas company stock
was started to determine whether the
i,1 anyHAinf la
Toilette anti-merger law, which torblds
a foreign holding corporation TO own,
control or vote more than 20 per cent
of the stock in any Washington utility
corporation Burroughs has insisted
that the La Toilette act was not Vlo-
lated. since the beneficial interest In
the 10000 shares is equally DIVIDED
among five holding corporations, each
of which controls less than 20 per
cent of the total stock. The invest
rnent trust, he maintained, is not Itself
a holding corporation and therefore the
holding is not in violation OF the law.
Information Guarded.
The Utilities Commission has been
given some valuable information IN
connection with the gas company case
hv the Department of Justice, but It's
nature is being guarded with utmost
secrecy pending completion of the In.
vestfeation which is now being directed
bv CORPORATION Counsel William W.
Bride. the commissions general counsel.
No comment was forthcoming from
the commission or Bride on the latest
reports from New York indicating the
intention of the Harris-ForbeS group
and its associates to create vast pup
lie utility system, but 1t is known tney
regard the information with consider
iv,anOrfanCP
CORPORATION Counsel Bride said he
did not expect to finish the inquiry
for nearly two weeks, as there are two
witnesses he is anxious to interview
before ne will be in position to re-
mort to the commission on the result
Of the investigation. One Of these wit
nesses is out of the United States but
is reported to be on the Atlantic, home
ward bound.
Aside from negotiating the gas COM
pany transaction. the Harris FORBES
group. according to recent reports from
New York, in association with other
interests. also has formed the United
states Electric Power Corporation. with
an authorized capital of $4,000 600
shares. It likewise will be utility hold
Burrouehs Public Utility Holding
Corporation, it is reported, numbers
among its original holdings investments
in the Associated Gas 81 Electric Co.
the General Electric d Gas Co. the
Central Public Service Co. and other
properties.