Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-24
Control of Local Company
Expected to Pass to West
vile Trust of Illinois.
BRIDE ACTION TO AWAIT
INVESTIGATIONS RESULT
Procedure Contemplated Against
New Owners Under La Toilette
Anti-Merger Act.

A transaction said to be taking place
today In New York and Chicago finan-
cial circles by which control Of the
washington Gas Light Co. and its sub
salaries will pass TO the Westville
Trust Of Illionis, owned by A. z. Pierce.
utilities magnate, is expected to give
Corporation Counsel william w. Bride
basis for his contemplated suit
against the new owners for violation
OF the La Toilette anti-merger act.
The negotiations were discovered by
william A. Roberts, assistant corpora
ton counsel during his recent tnvesti-
CATION In New York and Boston Of the
transfer IN the ownership Of the gas
properties: The Harris Trust & Saw
1ngS Bank Of Chicago controlled by
darr1s Forbes & Co. Of New York Is
said TO be handling the deal. Harris
Forbes d Co. directed the negotiations
more than year ago by which control
OF the gas properties passed from Wash
vestment Trust.
Awaits End Of Deal.
Mr.. Bride has been watching closely
the developments in the manipuIations
Of the gas stock, having been advised
that March "a, was the date set for
the transfer Of the controlling interest
IN the gas properties to the Westville
Trust. This transaction, Il Is believed.
will finally and technically put control
OF the gas properties in the Central
Public Service Corporations, q gigantic
Chicago public utilities concern headed
by Mr.. Pierce.
Mr.. Bride, however, does not propose
70 institute a suit in equity for alleged
violation Of the La Toilette act until
the present investigation of the high
nnance involved in the sale of the gas
stock Is completed He has taken the
position that it would be futile to take
legal action in this case until there are
sumcient facts to prove those developed
by the inquiry,
At the present time one of the major
missing links in the continuity of the
picture OF the gas stock transactions is
the relationship between the Westville
Trust and the Central Public Service
corporations.
The suit. according to Mr.. Bride, viii
known.
Believed Time Not Ripe.
1t was pointed out that under the
Ia toilette act, neither common law
ceeded against. Because Of this Mr..
Bride believes it would be useless to in
stitute legal proceedings at this time
against the Westville Trust, an Illinois
common law trust, or Pierce, its owner.
The Bureau Of Investigation Of the
Department Of Justice, which is aiding
Mr.. Bride and Mr.. Roberts in their
investigation, has not yet submitted its
report, but both Of them appear conf
dent that SUFFICIENT information viii be
forthcoming in q few weeks to pave
the way for legal action against the
Central Public Service Corporation.
The La Toilette act forbids a foreign
corporation to hold more than 20 per
cent Of the voting stock in a District
public utility corporation.
Was Not n Corporation.
When foreign interests acquired con-
troll Of the gas properties nearly two
years ago, the Seaboard Investment
Trust, was created to escape the pro-
visions Of the La Toilette act.
Equity Court held, in suit brought
against the owners at that time, that
the Seaboard was not corporation and
therefore could legally hold the stock of
the Washington gas concerns.