Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-09
Bond Issue Of $6,5O0,OO0
Accompanying New Title
Also Interests Officials.
PROOF SOUGHT THAT ACT
HARMONIzES WITH LAW
Seaboard Investment Trust Be.
comes "the Washington &
Suburban Co."

Surprised by an announcement that
the Sesboard Investment Trust, which
more than year ago acquired con-
troll OF the Washington Gas Light Co.,
had assumed the name of the Wash
inston & Suburban Co., and had COW
cred the stock by an issue Of $500 900
in 5l5 per cent collateral trust gold
bonds, the Public Utilities Commission
today planned an investigation to ascer-
tain whether the change conflicts in
any way with provisions of the La Fol-
lete anti-merger law.
Richmond B. Keech, peoples counsel
before the commission, also declared he
proposed to inquire into the transaction
for the same purpose as soon as he can
procure official information. Neither the
commission nor Mr.. Keech has yet been
oficially advised Of the change and
were unable, On the basis of press re-
ports, to measure its significance.
Attorneys View Stated.
Wilton j. Lambert, attorney for the
washington Gas Light Co., however,
said the change in the name of the
heIding company is the only significance
attached to the new bond issue. This
issue, he explained. represents securities
not only in the Washington company,
but the Alexandria Gas Co. and other
suburban property, thus Offering "a
more comprehensive investment"
George A. G. Wood, president OF the
Washington company, also declared he
did net expect the new financing 70
affect in any way the operating OF his
concern at is largely legal situa-
tion," he declared. 1T does not con-
Germ Us. We are going along just as
We always have"
The commissions investigation will
be made by Corporation Counsel VII
liam W. Bride, its general counsel, who
last year directed the inquiry into the
change In control of the gas properties
when the question was raised as TO
legality of the sale to the Seaboard In
yestment Trust This investigation re-
suited In the institution Of so-called
friendly suit by the commission In
Equity Court, and established the legal
ity OF the sale under the provisions OF
the La Toilette act.
Object OF Suit.
The suit was designed to compel the
Seaboard Investment Trust to dispose
of l08,eO6 shares of the capital stock
of the gas company, alleged to have
been held in violation Of the La Toilette
act. This act forbids foreign public
utility corporation, or any foreign or
local holding corporation, directly or
indirectly, to own, control or hold or
vote stocks or bonds of any public
utility corporation in the District.
The court held that the Seaboard In
vestment Trust. existing under the laws
of Massachusetts, was trust OF the
type Familiarity known as 'Massachu-
sets trust" and claSSed upon COM
mon-law trust rather than as an assoc
citation or partnership. The distinction
set forth by the court was that in a
connmon-law trust the property Is
vested in trustees who have complete
control, whereas in those treated as as
sociations or partnerships the control is
in the cestui que trustent, the trustees
being the agent.
MT. Keech pointed out that there
would be no change in the legal status
of the new holding company if it is
similar in character to the Seaboard
Investment Trust However, lacking in
formation as to the makeup and char
acter of the new holding company, he
reserved comment until the details OF
the change are forthcoming.
Comment Is Withheld.
Members of the commission also were
reluctant to pass opinions on the sig
nidcance of the transfer, pending re-
ceipt of more detailed information than
carried in press reports. 1t was pointed
out that the commission had not been
oficially advised of the change because
the new bond issue was fioated by the
holding company and not the utility
and in such cases it lacks Jurisdiction.
The commission, like Mr.. Keech, is
concerned with the legal phases of the
transaction because OF the provisions
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