Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-25
W|LDES RETRACES
GAS DEALS AIRED
IN PIERCE REPORT
$13,725,0O0 Advanced on
Washington Company Heads
Note, Witness Says.
STATEN ISLAND PLANT
BOUGHT ON LOAN CASH
Note Later Goes to Westfeld Trust,
Which Owns Most of City
Utility Stock.


Corp. and of many of its subsidiary and
affiliated companies, took the stand to-
day at the public hearing before the
Public Utilities Commission, which is IN
curing into the stock ownership OF the
Washington Gas Light Co. He explained
details of many of the financial deals
already testified to by Col. Albert f.
Peirce, president of the company. ana
bv Fred S. Burroughs, New York banker
interested in the original transactions.
Mr.. Wildes testified that $13, 725,0Oo
was advanced from Federated Utilities.
Inc, of which he is vice president. TO
Col. PIERCE on the latter's personal note
to be used for the purchase OF the new
York 81 Richmond Co.'S, owning gas
properties on Staten Island, N. Y. TINS
note was later exchanged for the west
field Trust note for the same amount
now held by Central Public Service
Corp.
The westfield Trust, he said, received
all of the voting stock of the Staten
Island properties and originally gave
its note to Federated Utilities The
Westfield Trust owns all OF the shares
of beneficial interest common stock
Of the Washington g. Suburban Cos,
which, in turn, owns about 81 per cent.
of the capital stock OF the washington
Gas Light Co.
He testified that as vice president OF
the Central Public Service Corpora
ton he authorized payment out OF the
funds OF that corporation to creditors
of the WeStfield Trust for various serv-
ices, such as changing the denomina-
tions Of the WeStfield Trust notes. THIS
was done in order to protect the invest
ment of his corporation, he said. These
sums later were charged to the West
field Trust. he said. He said the Fed
Grated Utilities and the Central Public
Service CORPORATE both have open
accounts with the Westfield Trust and
have advanced money to the trust: me
Westfieid Trust although the ultimate
owner of SO per cent of the stock OF the
washington Gas Light Co., has no cur
tent funds, he said.
Deals Are Traced.
The next phase Of his testimony dealt
with negotiation Of contract by wnicn
the Washington Gas Light GO. now gets
its natural gas from the Columbia Gas
Sy Electric Corporation. He identineo
a series of letters passing between him
self and George A. @. Wood, president
of the washington company, in June
and July of 1880, with reference to
the contract which finally was signed
August 4, 1880.
The letters show that it was WOODS
understanding at first that the CONTRACT
washington Gas Light Co. and Mary
land pipe line subsidiary of the Column.
bia Gas g. Electric Corporation and
later that Mr. Wood intended the con-
tract to be between the Seaboard In
yestment Trust and the Columbia sub
sidiary. Under Wildes' direction. how
ever, the contract as finally signed was
between the Maryland Gas Transmits
sion Corporation. subsidiary OF the
Columbia Gas g. Electric Corporation
and the Public Service Engineering
Corporation, a subsidiary of the Central
Public Service Corporation.
Ignorant Of Charge.
Mr.. Wildes said this decision was
made on advice of counsel because OF
Legislative conditions" He said he
did not know that a charge of $4,000
per month added to the price agreed
iiuon in the contract. had been col
lected by the Public Service Engineer
ing Corporation.
Mfr. Wildes was asked to explain a
circular letter from w. A. Battin TO
managers of all of the properties owned
by the Central Public, Service Corpora
ton in which the managers OF our
properties" were asked whether they
had on hand certain gas apparatus.
Mr.. Wildes said that Mr.. Battin was
not in a position TO know just what the
ownership of the Washington Gas Light
Co was.
Mr. Wildes was also asked to explain
a letter in March, 1881, from Sherman
Damon to President Wood Of the local
company, explaining that Wood would
draw no more salary checks from the
Seaboard Investment Trust, but would
Get them in future from the Washing
ton Gas Light Co on telephone instruc-
lions from Mr.. Wildes.
Mr. Roberts wanted to know what
right Wildes had TO dictate who should
pay the salary of the president OF the
Washington Gas Light Co, and Mr.
Wildes replied that the instruction was
prompted by his interest in the invest
rnents Of the Central Public Service
Corporation.
Der.es Improper Motive.
Mr.. Wndes denied that there was any
improper motive in his letter OF Septem-
Der. 1880, in which he told Mr.. Wood
that Bert II. Peck. then chief engineer
of the Public Utilities Commission, had
been offered a job in the Central
Public Service Corporation,
Mr.. Wil6es revealed that about June
1e. 1881. the Central Public Service
Corporation was planning to acquire
the minority stock interest in the Wash
ingtcn Gas Light Co, and that Mr..
Wood was given instructions to buy this
cheap on the market IL possible. He
said Mr.. Wood had never carried out
this instruction.
Asked the general question whether
he had exercised advisory control over
the local company. he first answered
II know of no one thing ever suggested
by me that was consummated." Later
however, he amended his answer by
saying that he had passed on proposals
TO spend money in Improvements before
the money was spent. He said that
Alfred Hurlburt. chief engineer OF the
Central Public Service Corporation, who
was paid 500 a day by the local COM
pany for expert assistance and ADVICE
had exceeded the authority given him
by Mr.. Wildes and Col. Peirce in order
ing improvements in the local company
Col. Peirce yesterday had testified thai
Wildes had exceeded the authority giver
him By PIERCE. Mr.. Hurlburt has MOI
been called as witness.
on motion Of Assistant Corporation
Counsel William A. Roberts, however
the commission took judicial notice o.
a sworn statement made by the Wash
ington Gas Light Co. and approved
by the Central Public Service Corpora
ton September ], 1881. in which the
collection Of this charge was admitted
Next q series Of letters was introduced
dealing with the sending Of r. H. Nor.
rison. an accountant, TO revise the &C.
counting system OF the local compan,
3 - --7fo~nl With ts9t Of the Contra
sa,.vicn CcrrO. p ion In two q