Evening star., 1929-07-02
BRIDE ASKS PROBE
into ACQUISITION !.
| OF UTILITIES STOCK
Counsel Seeks Aid of Justice
Department Subject to Ap-
provaI of Attorney General.
DECISION IS EXPECTED
FROM HOOVER FRIDAY
$nterest Centers in Whether Stock
Was Purchased by individuals
or for Corporation.

Corporation Counsel william W..
Bride, acting for the Public Utilities
Commission, today requested j. Edgar
Hoover, chief Of the Bureau of Grim
inal Investigation Of the Department of
of the stock in the Washington Gas
Light Co. by Dana A. Pearson Of New
York and others. Mr.. Bride said that
Mr.. Hoover promised to undertake the
investigation, subject to the approval
Of the Attorney General. A decision as
to whether it comes within the province
Of the department to make the inves-
tigation Is expected by Friday, Mr..
Bride said.
Duty to Apply for Dissolution.
Interest Of the commission in the
purchase Of the stock lies in the ques-
ton as to whether 1t was bought OUT
right by the purchasers as individuals
or whether they were acting for a hold
ing corporation. In the latter event,
the purchase would be in violation Of q
section Of the Public Utilities Commis-
Sion act forbidding local utility con-
Germs to sell or transfer their stocks or
bonds, directly or indirectly, to local or
makes 1t the duty Of the Commissioners
Of the District, or the United States,
through their proper officers, to apply
to the courts for q dissolution Of the
company In case Of q violation
Mr.. Bride said today that he had
been in communication with Mr.. Pear
son through third person, whose name
he was rot at liberty to state, and that
while MIR. Pearson had been represented
as not unwilling to satisfy Mr.. Bride as
TO the status Of the stock purchase, he
had been somewhat dilatory in the
matter I'VE cannot allow ourselves to
be trified with" Mr.. Bride said, in ex-
planning his request to the Justice De-
partment for prompt investigation. Mr..
Bride took with him today letter from
the commission, making formally to the
Department OF Justice the request that
he made verbally to Mr.. Hoover. The
text of the letter, however, was not
made public.
Agreed to Pay Holders S125.
The stock acquired by Mr.. Pearson
was bought on an agreement to nay to
stockholders $125 for each share Of
stock turned In by last Friday. The par
value Of the stock IL $40, and on this
basis the stock for several years has
paid dividend Of 10 per cent. The
commissions interest In the purchase
has been aroused by printed reports
that the purchase Is q move In battle
between gigantic holding corporations
for control Of Washingtons utilities.
This foreign control has already taken
place In the case of the Washington
Railway 81 Electric Co., in which Q
majority of the stock Is owned by the
North American Co. Of New York. This
is permissible, however, under an
amendment to the act referred to above
waving the restrictions on foreign con-
troll 81 street car corporations where the
control was obtained for the purpose Of
effecting O merger. Whether any
similar move has taken place or Is
taking place as to gas company stock
is at this time q matter OF speculation.
Mr.. Bride was to leave this afternoon
for q fishing trip to Maryland resort.
He expects reply from Mr.. Hoover
when he returns to his desk Friday.