Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-04-04
RESIGNS
AS GAS CO. HEAD
George Wood of illinois Ex.
pected to Be Named
to Post April IL.

Ord Preston has resigned as presi-
dent Of the Washington Gas Light Co.
The presidency viii be taken over by
George Wood Of the Central Public
Service Corporation of Illinois. The
election of Mr.. Wood is expected at
the meeting Of the board of directors,
April IL.
The new president ties in with the
group which recently acquired the gas
company for outside interests and sue
cessfully withStood an attack In court
on the purchase on the ground that it
violated the La Toilette anti-merger
act. The Central Public Service Cor
poration is held by the Public Utilities
Holding Corporation, of which Frank
s. Burroughs Is president. Burroughs
is connected with the Harris Forbes
Co. Of New York, investment bankers,
which engineered the deal for the pur-
chase two years ago.
Mr.. Preston announced his resigna-
ton yesterday, saying that 1t had been
submitted nearly a month ago, to be-
come effective at the will of the board
Of directors. Although 1t is freely pre-
dicted that other changes in admins
trative personnel will be made, none
Of them has yet been announced.
Secure Merger Approval.
The new owners of the company have
recently secured approval from the
Public Utilities Commission Of q bill
to merge the company with the George
town Gas Light Co., of which 1t Is the
sole owner. Mr.. Burroughs stated to
the commission at the public hearing
that the company intended to enter
the field Of gas selling at wholesale
rates in order to compete with fuel
oil and coal in house heating. Mr..
Burroughs promised reduction In
rates, averaging 10 per cent throughout
who use very small quantities Of gas,
whose rates will be increased by a
service charge. 1t is expected that the
policies of the company under new
ownership will be dictated from Chi
cago on lines similar to those on which
the Central Public Service Corporation
Is run.
Mr.. Preston expects to take a vaca-
ton soon and said he would 60 to
Florida for the fishing.
Became Director in 1910.
Mr. Preston became a director Of the
gas company in 1910 and was elected
vice president on December 10, 1922, ad-
vancing to the presidency in February,
1924.
It was under his administration that
the Washington Gas Light 81, 1000, 900 10
year gold bonds. Series A, were issued,
this being the first time the customer
ownership plan had ever been tried in
the Capital. The issue was put out in
1928 and the bonds were fully subscribed
In five days.
Later $I,5oO,OOo Washington Gas
Light gold bonds, Series B, were placed
on the market. So successful was this
sale that the entire issue was oversub-
scribed as soon as it was announced.
Mr.. Preston adopted the customer own
ership method against much opposition,
as many people declared it would not be
successful In Washington.
During his administration Mr.. Pres
ton has revamped both the East and
West gas stations, the gas distribution
system has been greatly enlarged,
especially by the construction of a "a
inch belt line around the city, this
work being completed in the Summer
Of 1927. The main Office on Tenth street
was rearranged and many oCher i'm
portant smaller projects carried out.
When he took the presidency Of the
company in 1928 the stock was selling
around so. When the control of the
concern was obtained by out-of- town
interests more than year ago most of
the stock was purchased at $125 a
share. It sold on the Washington Stock
Exchange yesterday at 121. During the
bitter contest for control Of the COM
pany the out-of-town interests mad to
obtain large block of stock which Mr..
Preston controlled. He refused to sell
this until the buyers had agreed to give
all minority shareholders SIPS per share.
The gas company and all subsidiaries
reported net earnings for 1929 of about
$3.50 900, or about 81 share on the out,
standing stock