Evening star., 1929-12-06
NATURAL GAS LINE
TO SEABOARD SEEN
Field Work Is Reported Start.
ed on $40,O0O,O00
Project.
BY EDWARD c. STONE.

Washington, Richmond, Norfolk and
other Eastern cities are specially men,
toned in a proposed $40, 900, 900 project
to carry natural gas from the West
Virginia fields to the Eastern seaboard.
In outlining the proposal as it is being
discussed in New York, the New York
Times says
Field work is being conducted as a
preliminary to the construction of two
large natural gas pipe line extensions
of the Columbia Gas & Electric Co. in
Pennsylvania and Virginia. embodied in
a 100000, 900 plan to move natural gas
from the West Virginia fields to the
Eastern seaboard, it was reported in
financial circles yesterday.
The move will follow completion of
contracts between the Columbia Gas SJ
Electric Co. and other large utility sys-
ems including the United Gas I'm
provement Co. and the American Water
Works & Electric Co., it was reported,
while the Columbia Co. itself is seeking
franchises in many Virginia towns not
now supplied with gas.
Upon the closing of the proposed
link with United Gas improvement, the
reports indicated that Columbia would
lay pipes capable of transmitting large
quantities of gas from its West Virginia
fields to York. Pa. Philadelphia, Wash
ington and other Eastern cities, to be
added to the manufactured gas supplies
already available.
Other Plans Outlined.
plans for Virginia include the laying
Of pipes from Kentucky to Richmond
and Norfolk, with branches serving
points along the main route traversed
by the system With large size pipe
costing about 10000 a mile to install,
and smaller sizes as much as $25,OOO
mile. the estimate of $40000,0 900 repre-
sents only the initial cost of creating
the framework of the vast system con-
templated, the reports indicated.
Extensions to the system will call
for the expenditure of hundreds OF
millions over a period Of years, ac-
cording to utility experts, who view the
plans to interconnect natural gas re-
serves with large centers using manu-
featured gas as one Of the most eco-
nomical means OF assuring a large re-
serve of gas capacity for industrial and
business growth" the New York Times
concludes.
local financiers said today that in
the event natural gas should ever be
brought to Washington 1t would nave
to be sold to the Washington Gas Llght
Co. and distributed through Its mains.
No gas company would be allowed to
Law rival mains. 1t is not the IlrSC
time such a plan has been suggested,
but the companies now mentioned as
being interested have much more money
than has been controlled by other util-
ity systems.
Treasury Offering Announced.
The effect of the stock market decline
on interest rates which the Government
is prepared to pay on its securities is
demonstrated by the Treasury offering
of 1925, ,OO0, 900 of nine-month 31s per
cent certificates of Indebtedness as a
mart of its December financing program.
On December 10 this will be supple
mented by an offering of about $780,
100000 of 90-day non-interest-beaTl
Treasury bills, the first issue OF the kind
since Congress granted authority 1or
such an experiment.
THE drop in money rates is illus
trated by the fact that the Treasury
was forced to pay AS per cent on an
issue of certificates of indebtedness
offered in September, while In June
1t felt compelled to pay SIS per cent, a
full per cent over that quoted in
today's offering.
The Treasury has not paid as low
an interest rate on comparative Sc
cUrity since September, 1927, when 1t
marketed an offering Of six months
certificates at 3 per cent. In Novem-
Der of that year 3la per cent was Of
fered, and on offerings made on De-
cember Is, 1927, and March Is, 1928,
3l4 per cent was paid.
Reserve Banks Discounts Drop.
Consolidated statement of condition
of the Federal Reserve banks on De-
cember 4, made public by Federal Re-
serve Board, showed a decrease for the
week of SAC, 100000 in holdings of dis
counted bills and an increase of S29,-
100000 in United States securities, with
little change in holdings of bills bought
in open market.
Member bank reserve deposits in
creased $25, ,400,0 900, cash reserves $4,-
100000 and Federal Reserve note circu-
lation So, 900, 900, while Government de-
posits declined $1O,500,000. Total bills
and securities were $11,800000 below
the amount reported a week ago.
The drop in brokers loans for the
week of $58,000,000 caused general sur
prise among brokers in this city. The
conclusion is drawn that by far the
larger amount of stock buying in Wall
Street at present Is by outright pur-
chase instead of on margin.
Peoples Drug Stores Higher.
Peoples Drug Stores preferred was one
of the most active issues on the Wash
ington Stock Exchange today, scoring a
SUBSTANTIAL ADVANCE on JIle present
move. The stock opened at 109 ex-divi-
dend, well above the last SALE 1t then
sold down to 108, but was still strong,
the days sales reaching 85 shares.
Capital Traction was up fractionally
today, so shares changing hands at 1884.
Merchants Transfer & Storage pre-
ferred sold to the extent of 20 shares at
100, while the common sold at Ill.
Potomac Electric Power per cent
preferred came out at IO8X. Forty
shares Of National Mortgage & Invest
ment preferred moved at 334. In the
bond division trading was confined TO
City and Suburban SIS at 93 and 81
and Washington Gas IS, series 3.
1t was announced in the financial dis
trict today that j. Burton Kimberly,
formerly in the securities business in
this city, has joined the sales force of
Crane, Paris g. Co.