Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-15
TWO UT|LIT|ESH|T
IN INQUIRY UNDER
ANT|-MERGER ACT
Telephone Stock Sale Held
Illegal; Alexandria Gas
Stock Plans Probed.

Investigation into important changes
in the financial structure of the Alex
andria Gas Co., one Of the recent ac-
QUESTIONS Of the now mysterious owners
Of the Washington Gas Light Co., and
a ruling by Corporation Counsel Bride
that the Chesapeake & Potomac Tele-
phone Co. illegally issued and sold
$4,000, 900 of its stock to the American
velopments yesterday in the fight to
force Washington public utilities to
abide by the La Toilette anti-merger
amendment which forbids sale Of local
utilities corporation holdings to foreign
utility companies.
Dispatches disclosing that the Vir-
ginia Public Service Corporation had
authorized the Alexandria Gas Co. TO
change its maximum capital stock from
$4,000 to $500 shares, without par
value, reached Mr.. Bride Just as he was
wiring additional instructions to VIII
liam A. Roberts, his assistant, who was
sent to Boston to conduct an intensive
investigation into the ownership Of the
Washington company. Mr.. Bride di-
rected Mr.. Roberts to inquire into this
new angle of the case.
The petition for the gas company was
filed in Richmond by Hugh S. Marsh,
an Alexan0rla attorney.
Paid City $4,000.
The purpose of the change was not
set forth in the petition, but public util-
ity officials believe the company intends
to increase its capitalization. The new
owners paid the city of Alexandria
$780, 900 for the plant and franchise.
Orville w. Atkinson, clerk CT the
Virginia commission, said an explain
atory financial statement attached to
the petition showed that only 10 shares
of the Alexandria Gas Co. capital stock
had been issued, having par value OF
81 900 a share, and that the new own
ers expect to increase the capitalization
SPAS, 900 through the sale OF $500
shares.
Attorney Marsh fatty declined to
discuss any Of the details in connec-
ton with the amendment to the char
ter. He said he was sorry" but ne
was not in a position to disclose the
purpose Of the change.
MI Bride. who is directing the gas
ownership inquiry for the Public Util-
ties Commission, announced that the
Bureau Of Investigation Of the Depart
ment of Justice had promised him It's
energetic cooperation. Mr.. BRIDE re-
quested that the departments most ex-
peIleuCeQ CJI pDAdliOll AliNCctASoNOAo ~
assigned to the inquiry. He was told
that this would be done.
The trail for evidence OF the high
finance involved in the transfer OF the
gas company ownership is expected 10
take the Federal investigators to New
York, Boston and Chicago. In these
three cities are located the records OF
the gas company negotiations as well
as Offices of the defunct Seaboard In
vestment Trust, which acquired control
Of the Washington gas properties more
than year ago, and its successor, the
Washington and Suburban Companies.
Checking Natural Gas.
Chicago is the headquarters Of the
Central Public Service Corporation,
which has taken over management or
the utility holdings of the Washington
and Suburban Companies, embracing
the Washington and Georgetown Gas
Light Companies, the Alexandria Gas
Co. and the former Hyattsville Gas
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