Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-04-16
GAS MERGER 0. X.
WILL Be REPORTED
Senate District Committee
FavorS Plan to Consolidate
Local Companies.

A favorable report On the bill to con-
solidate the Washington and George
town Gas Light Companies will be
recommended by members of the Sen
ate District committee who conducted a
public hearing on the measure yesterday
afternoon, subject to poll Of absent
members of the committee.
Frederick S. Burroughs and Attorney
Wilton j. Lambert, who explained the
bill on behalf Of the companies, repeated
the prediction made before the Public
Utilities Commission that the merger
would be followed by cut Of about 10
per cent In the price of gas.
Opposition to the bill was expressed
by Evan Fl. Tucker, president of the
Northeast Washington Citizens Associa-
ton and by G. G. Mayer, an individual
Commission Urges Passage.
The Utilities Commission, through
Chairman Patrick, recommended pas
sage of the bill. Gen. Patrick said the
commission decided following its own
hearing that the rights of all, including
the public, were protected by the bill
Richmond B. Keech, peoples counsel
also approved the measure.
Senator Capper, chairman of the
committee, and Senator Robson Of Ken
lucky, questioned Lambert and Bur.
roughs regarding recent purchase OF
local gas stock by a group of new own
| ers, i1Quiring in detail about the price
of the stock.
Mr.. Lambert told the committee that
since 1923 a group of bankers have
| acquired 100000 shares of the local gas
stock, which Is held by the Seaboarc
Investment Trust. Answering inquiries
| by Senator Capper, Mr.. Lambert saic
| the market value of the stock in 1925
was about $75 or $50 a share, and that
last Summer purchases were made al
$125 a share.
Mr.. Burroughs, treasurer of tht
| Seaboard Investment Trust. said hi:
associates considered Washington 6
| splendid market for use of gas, anc
saw a possibility of increasing its us'
here. Discussing the increase in thu
| price Of the stock, Mr.. Burroughs saic
he found 1t could not be bought cheaper
Holds Duplication Expensive.
| Mr.. Lambert said the Washington
I company already owns the stock of thu
| Georgetown company, and Mr. Bur
roughs explained 1t was felt that there
Is an unnecessary duplication of ex'
| penSe In maintaining separate George
| town company. He said there may b'
a saving Of $5o,000 year through con-
| solidation. Mr.. Burroughs also tolc
! the committee consideration was beint
given to bringing natural gas int
Washington, or of developing a by
product plant. He said the compan.
will seek to earn its return by reducing
rates and increasing the volume O
| business.
Mr.. Tucker said his association haC
diSapproved the merger bill on belle
that 1t is not in the interest of citizeni
of Washington. He said 1t was thu
understanding Of his association tina
most of the District Is served by tn
Washington company, but that tn
Georgetown company has outlying ex
tensions. He took the view they shoul'
be kept separate.
The Senate committee also had ex
pected to hold hearing yesterday o.
the bill to give the Utilities Commission
broader powers in regulating the taxi
!. cab business in the District, but post