Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-19
!OWNERSH|P ISSUE
| ON GAS COMP AN|ES
| TO Be PROBED NEXT
Pressure Hearings Bring Out
Details of Alleged Control
by Chicago Interests.
OUTSIDERS INTERFERE,
QUESTIONING REVEALS
Corporation and Banking Men
Agree to Appear Wednesday.
Peirce Under Subpoena.
The discussion Of proper gas pressures

The discussion of proper gas pressures
having been completed, the Public
Utilities Commission next week will
turn its attention to the question of
who now owns the Washington and
Georgetown Gas Light Co.'S, and
whether this ownership is contrary to
the La Toilette anti-merger law.
The pressure phase Of the public
hearings came to an end late yesterday
The ownership phase will begin at III
O'Clock Wednesday.
Col. Albert E. PIERCE, president OF the
Central Public Service Corporation OF
Chicago. which is said to be the owner,
either directly. or indirectly, of "a per
cent of the stock in the local companies,
is under subpoena to appear. TWO other
officials of the corporation, William II
Wildes, vice president and r. E. Gal
lagher, controller, have agreed to ap-
pear, as has Fred S. Burroughs, an otl-
Ger of Harris, Forbes 81 Co., New York
investment bankers. 1t was Burroughs
who engineered the original deal
whereby control of the local companies
was obtained through purchases OF the
$50 par value common stock at prices
ranging up to $l25.
Ownership Details Revealed.
Among these there now is said to
be dissension. George A. G. Wood,
president of the local company, has
made an open break with Col. Pierce
made an open break with Col. PIERCE
banner at the election of officers next
January 1t is said that Burroughs is
on Woods side.
Although the five days of the hear
ing already elapsed have been sup
posed to be confined to the question OF
gas pressures, many revealing details
of the ownership have been brought
to light incidentally. 1t was shown
that while the company engineers had
one plan for laying mains to take care
of expected increases in loads due to
its campaign to sell space heaters last
Winter, this was carried through only
in part, due to interference by officers
of the Chicago company, one of whom
was made the last word in all engi-
neering questions, although he had no
official connection with the Washington
Gas Light Co.
It was also shown that all, requisi-
tons for improvements had to bear
the approval of two vice presidents of
the Chicago company before the i'm
provementS were allowed to be put
into effect.
Excess Pressure PrObed.
AS TO the gas preSSureS, the company
now is operating on a temporary 8-inch
maximum pressure, although the per-
manent standards of the commission
call for 6-inch maximum and pinch
minimum. These limits. have been ex-
ceeded regularly for years, certainly as
far back as 1916, and the company
wants them changed to 3 inches mini
mum and 10 inches maximum.
A plethora of expert testimony Is
now In the record to the effect that
consumers will not suffer by reason OF
the higher pressureS, which. according
to the testimony, are actually more
beneficial than lower pressures, al
though the drift of the questioning by
the peoples counsel and by William A.
Roberts, counsel for the commission,
was based on the theory that the desire
for the increased presSures was largely
an economic one; in other words, that
it is cheaper for the company to main
tain the high pressures than to put IN
the extra pipes necessary to carry Its
increased load at low pressureS.
The company claimed it would cost
an extra 100000 this year alone to
bring the pressure standards down to
the to 6 inch limits. They said, how
ever, that they could maintain an
8-inch maximum with very little. If
any, additional expenditure beyond
what will actually be spent in its con-
struction program through october is
Of this year.