Evening star., 1931-03-10
Seaboard Investment Trust
Now Known as Washington
Suburban Companies.
PLANS TO GET CONTROL
OF OUTLYING UTILITIES
Inquiry to Determine Whether
La Follette's Anti-Merger Act
Has Been Violated.

The Public Utilities Commission to-
day directed Corporation Counsel
William w. Bride, its general counsel,
to investigate the latest development in
the gas situation-the change in name
of the Seaboard Investment Trust, the
holding company which more than a
year ago acquired control Of the Wash
ington Gas Light Co.
Mr.. Bride also was instructed to
scrutinize carefully the $6,500, 900 bond
issue by the new holding company
which is known as the Washington and
Suburban Companies. The inquiry will
be made to determine whether the
| transactions conflict in any way with
the La Toilette anti-merger act.
Although the Washington Suburban
Companies have not yet officially ad-
| vised Mr.. Bride or the commission of
their makeup and character, news
paper advertisements announce that
they are a Massachusetts, common law
trust, formed under a declaration of
| trust, containing the usual provisions
| confining liability to the trust assets.
The Equity Court has held, it was
pointed out that such trust can hold
| stock in a Washington public utility
| corporation without conflict with the
prohibitions of the La Toilette law.
May Go to Boston.
Mr.. Bride, however, said he would
make a thorough study of the new
| holding company and the bond issue,
1 vryai ioI1 {rI1 4rfv. 90 De-
| ton, headquarters of the Washington
Suburban Cos. William A. Roberts, as
sistant corporation counsel, will assist
in the investigation.
The Washington Suburban Cos, ac-
cording to newspaper advertisements
| owns approximately "a per cent of the
! common stock of the Washington Gas
Light Co. and will own the entire capi-
talization of the Alexandria Gas Co.
and the Washington Suburban Gas Co.,
this group supplying gas directly or
through subsidiaries to the District and
adjacent communities in Maryland and
Virginia.
The companies also will own, they
announced, 90 per cent Of the non-
voting participating preference stock
and approximately per cent of the
common stock of the New York sS
Richmond Gas Co, furnishing gas in
viz 0Ot'N6At Va 1sANl4AIAOA1Ig 0bdLEh
Island, N. Y. These bonds, according
to the companies, will be direct obIiga-
tions of Washington and suburban
companies, and, In addition, will be Sc
cured by "a per cent of the common
stock Of the Washington Gas Light Co.,
the entire capitalization of the Alex
andria Gas Co. and the entire capitali-
zation OF the Washington Suburban
Gas Co.
Wood Makes Replies.
The Utilities Commission also an
nounced the receipt of two letters from
George A. G. Wood, president of the
Washington Gas Light Co., one reply
ing to the recent order directing the
readjustment of gas appliances in ac-
cordance with the commissions previ-
GUS orders and the other opposing a
proposed regulation providing for re-
vision in the classification Of the COM
pany's accounts.
The commissions proposed regulation
would require the removal from the
company's operating revenue account
of revenues derived from the sale of
appliances. These revenues would be
kept separate and apart and would not
be taken into consideration in arriving
at any rate to be charged for gas
service
Mr.. Wood told the commission that
the company had no objection to the
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