Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-07
LABOR TO PROBE
FINANCE SET-UP OF
GAS MERGER PLAN
Central Union Condemns
Company for Awarding Con-
tract to Baltimore Firm.
WOODHEAD SAYS WORK
is OF TECHNICAL NATURE
Leaders Charge Attempt to Lower
Standards and Violation
of Code.

With the Washington and George
town Gas Light companies planning to
renew their efforts at the Forthcoming
session of Congress for authority to
consolidate, Central Labor Union Off
Gals today announced they intended TO
make a thorough investigation of any
new financial set-up contained in the
merger plan.
The announcement followed action of
the labor organization last night ir
condemning the gas company for
awarding a contract to a Baltimore
firm for the construction of a new gas
holder for its Southeast plant because
the contractor sublet some Of the work
to firms employing nonunion labor.
Merger Bill Expected.
A merger bill similar 10 the one
drawn up by the company last year, but
never presented, is expected this VIM
ter. according to John B. Colpoys. edl-
tor of the Trades Unionist. If it APP
pears. he stated, members OF organized
labor who are share holders in the COM
further an examination OF the proposal,
in order TO protect the interests of the
public"
The recommendation formulated last
Winter urged to consolidation OF the
Georgetown and Washington Gas Light
companies under one financial struc-
ture, and the granting of permission
to the new company to issue addltlonal
stock when more funds were required.
This scheme, it was explained today
By F. A. Woodhead, operating vice presl-
dent of the Washington Gas Light Co.
is intended to facilitate the operation
Of the two companies as one unit. and
to permit financing by method more
practicable than the present system OF
issuing bonds.
Charge Violation of Code.
Subeouent to reports made by Charles
Young. head of the Building Trades
Council. and Mr.. Co poys. at the meet
ing of Central Labor Union yesterday,
the measure of protest was placed on
record The union leaders charge That
the Gas Light Co. is attempting TO
lower the standards Of labor IN WASH
ington. and that it has violated the
tenets of the code recently issued by
President Hoover's Committee Of En-
ployment, by going out of town for It's
labor in letting the Job contract TO
Bartlett & Hayward of Baltimore by
placing the contract with concern
which does not maintain a union closed
shop
The gas company. through Mr. Wood
head. explained today that the con-
tract for the job now under construc-
ton was Of q technical nature requlr-
ing the services of one of the three or
I,E1l 1A1ii N
Bartlett Howard Co. is one of these
firms, it was stated and consequently
their services were engaged. Mr.. Wood
head takes the position that the COM
panv is not responsible for subcontracts
later given out by Bartlett e. Howard.
but points out that officials of the Bal
timore concern stated here yesterday
in the presence of union officials that
union men presenting cards at the job
probably will find employment"
Followed Recommendations.
Mr.. Woodhead further states that his
organization followed the recommended
ton of labor leaders in presenting a
list of contractors to Bartlett and Hay
ward for consideration in arranging the
excavation work now being done and
that the choice of the Baltimore build
ers in selecting a local nonunion firm
was dictated, according to their report,
by reasons of speed and superior
equipment"
The gas company executive added
that his company did not feel qualified
to go further than the recommendations
already made in regard to the sublet-
ting done by Bartlett and Hayward
ANY more than one would want to
advise a surgeon who was about to per-
form a very specialized type of opera
ton"
Hearings Set for September.
The hearings on general service and
ownership of the Washington and
Georgetown companies have been set for
September IA and September 81, re-
spectively, by the Public Utilities Com
mission.
The hearing on the companies service
will take in their request that the allow
able pressure standards be changed so
as to raise the minimum from two to
three inches pressure and the maximum
from eight to ten inches.
The hearing also will go into bills
rendered by the companies during the
past eight months, concerning which
there have been numerous complaints.
and the possibilities of adjusting rates
SO they will decrease as the maximum
allowable prSSSureS are exceeded.
Air Transmission System.
Other questions to be aired as the
suitability of the companies transmits
sion systems and variations in the allow
able preSsureS and their effect, if any,
on customers bills
The hearing on ownership is directed
at discovering whether the La Toilette
anti merger act has been violated
through acquisition of controlling in
terest in stock in the WASHINGTON Gas
Light Co. by various companies and
trusts owned by A. E. Pierce of Chicago.
Elected to Board.
Mr. Pierce recently was elected a
member of the Board of Directors of
the Georgetown Gas Light Co., all the
stock of which is owned by the Wash
ington Gas Light Co.
The La Toilette act prohibits acquisi-
ton of the stock in local public utilities
by foreign utility or holding corpora
tions, directly or indirectly One eff
fort to invoke this act in the sale of
stock in the Washington Gas Light Co.
to the Seaboard Investment Trust a
dummy concern made up of five groups
of New York, Chicago and Buffalo in
vestment concerns, failed last year.