Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-06
GAS CO. OWNERSHIP
SUIT RECOMMENDED
BY UTILITY BOARD
Violation of La Toilette Anti
Merger Act Would
Be Charged.
CENTRAL PUBLIC SERVICE
, CORPORATION is NAMED
Court Action Is Decided After Com.
plete Study of Record in
Recent Hearings.

The Public Utilities Commission has
decided to recommend to the District
Commissioners that suit be instituted
in Equity Court charging the Central
. Public Service Corporation of Chicago
with violation of the La Toilette anti
merger act in acquiring ownership of
the Washington & Georgetown Gas
Light Companies.
Gen. Mason M. Patrick, the chair
man, said the commission had deter
mined upon this drastic course of ac-
ton after a complete study of the
record in the recent hearings con-
Quoted in connection with the inquiry
into the ownership of the local gas
companies. The Public Utilities Com
mission was today preparing to send
the record of the hearings to the Dis
Hrict Commissioners.
Letter Ordered Draft.
This voluminous record. it was ex-
planned, would be accompanied by a
letter recommending in effect that the
Commissioners institute the suit against
the Chicago utility company. The
letter was ordered drafted today.
Under the La Toilette anti-merger
act. foreign utility company is pro-
hibited from owning, controlling hold
ing or voting more than 90 per cent
of the stock or bonds of any public
utility company of the District of CO.
lumbia. The whole purpose OF the act
is to leave the control entirely in the
hands OF the local company without
outside dictatorship. Gen. Patrick said
the letter recommending the suit be
instituted in the name of the Commits
SlonerS was necesSitated By Che law.
which states that such suits be brought
by the Commissioners, rather than by
the Public Utilities Commission.
Evidence developed by William A.
Roberts, assistant corporation counsel in
utility matters, at the recent hearings
brought out some amazing facts re-
garding the alleged ownership of the
local gas light companies. This evil
dence tended to show that virtually the
whole ownership and dictatorship lies
with the Central Public Service Corpo-
ration of Chicago.
PIERCE Sole Owner.
Mr.. Roberts developed through evil
dence that the Washington &; Suburban
Co, always regarded as the owner of
the local gas light companies since the
organization, was in effect owned by the
Westfield Trust of Illinois, and that Col.
Albert E. Peirce, who is president of
the Central Public Service Corporation.
was the sole owner of the Westfield
Trust Corporation.
Other facts in the maize of inter-
locking control of the local companies
showed that the Central Public Serv-
ice Corporation holds a Sl3.75O,OOO
mortgage on the Westfield Trust.
Should the District Commissioners in
stitute suit under the anti-merger act
and the District Supreme Court hold
that the Chicago company ownership is
illegal, the result would have the effect,
1t was said of throwing the Washing
ton and Georgetown Gas Light Cos. into
control of the minority stockholders.
The minority stockholders at present,
1t is understood, hold virtually Is per
cent Of the stock.
In event the District is successful in
the outcome of the court proceedings
the law provides that the court shall
corporation or force the foreign utility
company to dispose of its stock. 1t can
also restrain the Central Public Serv-
ice Corporation from voting its stock.
Gen. Patrick also said today that no
decision had been reached regarding
1.-THE petition of the Washington Gas
Light Co. for maximum pressure of
kbetween 8 and 10 inches It is probable
1.-THE question will be under consideration
ior some time to come.
The prevailing opinion in District Of
/ f1cial circles appears to be that the
commission would allow the company
at least an 8inch maximum pressure
In its mains.