Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-19
Bride to Ask Utilities Body
Attitude on Massachusetts
Trust Action.
MADE INVESTIGATION
OF FORMER STOCK DEAL
Seaboard Investment Trust De-
clared Organized to Hold Wash
ington Gas Light Securities.

Corporation Counsel William w
Bride announced today that he would
confer at an early date with the Public
Utilities Commission to determine what
action, if any, should be taken by the
commission or himself in connection
with the recently announced purchase
OF the Alexandria municipal gas plant
BY the Seaboard Investment Trust.
The Seahoard Investment Trust is a
Massachusetts trust organized for the
purpose Of holding stock in the Wash
ington Gas Light Co., bought from its
local owners by New York interests. At
the time of the purchase considerable
local interest was stirred up, and MIR.
Bride made a painstaking inquiry into
the circumstances of the sale. aided by
the Department of Justice, for the pur-
pose Of ascertaining whether there had
been, In the SALE violation Of the La
Toilette arti-merger act.
This act forbids the purchase or hold
ing by any foreign corporation Of more
than 20 per cent of the stock of any
District public utility corporation.
Transaction Explained to Bride.
During the inquiry. letter was writ
ten to Mr. Bride by Fred S. Burroughs,
who engineered the sale to the New
York interests, explaining the transac-
ton and stating in unequivocal terms
that the Seaboard Investment Trust
of holding the Washington Gas Light
stock and for no other. The words of
Mr.. Burroughs letter which Is on file
with the commission are are follows:
las a medium for holding the stock
of the washington Gas Light Co. for
the beneficial interest of the group Of
bankers and investors headed by Harris,
Forbes e. Co, the Seaboard Investment
Trust was formed This trust is not
in any sense a public utility corpora
ton or a holding corporation, but it is
a trust formed under and pursuant
to a declaration of trust appointing
three trustees to hold and control the
shares of washington Gas Light Co,
acquired for the benefit Of the bank
ing group.
Answers Future Policy Question.
"In answer to your question as to the
future policy of the trust in connection
with the acquisition of other utility
stocks or properties, have replied that
Seaboard Investment Trust was formed
solely for the purpose of SECURING and
holding in a legal manner the stock of
washington Gas Light Co.. and that it
does not own and has no intention Of
acquiring other utility stocks or prop
critics"
In order to determine whether the
trust can legally hold the ownership of
any property other than the Washington
Gas Light Co. stock, the declaration of
trust must be carefully scrutinized, Mr.
Bride held, and undertook this task to-
day.
Wood Discusses Gas Purchase.
Regarding the purchase OF the Alexan-
dria. Va, gas plant, President @. A. G.
Wood OF the Washington Gas Light Co.
said today:
'Inasmuch as the Seaboard Invest
ment Trust is the controlling factor in
the Washington gas situation, the Alex
andria operation will be conducted in
conjunction with the Washington OPP
Grafton. Alexandria offers permanent
solution to the manufacturing situation
Of the whole Washington gas situation
in that it makes possible franchise
In a territory which will afford the OPP
portunity at the proper time of expand
ing manufacturing facilities on deep tide
water, If and when necessary
Consequently, the acquisition should
prove Of great benefit to the whole
Washington gas situation. because it
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