Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-10
QUIZ WON'T AFFECT
CAR LINES IN D. c.
Capital Interests of North
American Go. Expected to
Come Up incidentally.

The Federal Trade Commission
Wednesday begins an expose OF the ex-
tensive holdings of the North American
Co. of New York, but there is little
likelihood that its Washington inter-
ests will figure prominently in the case.
The North American, a gigantic pub
lie utilities holding corporation, owns
a small amount Of stock in the Cap
ital Traction Co. and controls the
Washington Railway & Electric Co.,
which, in turn, owns the Potomac
Electric Power Co. The commission,
however, is not expected to bring these
holdings directly into the proceedings,
because the power trust Investigation
it was authorized to make by Senate
resolution in 1928 limits the scope Of
the inquiry to gas and power utilities.
Moreover, the North American has
very little interest in transportation
companies. It's holdings consist ch1eny
of the stock Of power and gas oper-
ating companies. NeverthelesS, the
commission examiners, in building up
a detailed and comprehensive picture
of the corporations activities, may
bring its Washingten'S interests into
the case In this indirect way.
Its Interests Scattered.
The North American Is one OF the
largest utility holding concerns whose
activities have come under scrutiny OF
the Trade Commission examiners since
the beginning of the power trust IN.
vestigation hack in 1928, as directed
by the Senate resolution. Its hoiolngS
are in the Midwest principally, put u
has interests scattered from one coast
to the other.
Federal Trade Commission exam
liners have gone over the corporationS
book Of accounts and VIII outhhe Ine![
findings during the hearings: Tnen
renorts will be devoted primarily to the
financial structure of the company ana
other pertinent facts with respect TO
various security issues. This 1nforn1a-
ton is designed to show the value or
detYiment TO the public OF the corpo-
ration and whether Q monopoly mas
been created in violation OF Feaerai
antitrust laws.
Robert E. Healy, chief counsel Of the
commission, will conduct the hearings
which are expected to last about two
weeks. Judge Edgar A. Mccullough VIII
Eight public utility holding corpora
lions and their subsidiaries already
have been investigated by the commits
sion and the hearings completed, the
most sensational Of these being the IN
curry into the publicity and propaganda
actiyities of the utilities. These com
panies included the American Gas Il
Electric Co., the Electric Bond d Share
Co, the w. B. Foshay Co., the Caro-
lima. Power 81 Light Co., the Mime
sofa Power a. Light Co., the Common
wealth IL Southern Corporation, the
washington Water Power Co. OF Seat
tie and the New England Power Asso-
citation.
Hearing Is for Evidence.
The investigation Of the North Amer
lean has been completed by the COM
missions examiners and accountants,
and the hearings will be held 30 that
the information they developed may Re
introduced in evidence. The data VIII
cover the organization and develop
ment of the company and It's Subsidia-
ries. and such financial aspects OF the
group as the growth of capital assets
ana capital liabilities, the issues Of Sc
curities and the proceeds and expenses
of such issues, the methods employed
in selling its securities and the volume
of sales, the extent and interest Of the
holding company in subsidiary COM
panies and their relation with each
other, the services furnished to the
operating companies BY the holding
companies, the earnings and expenses
connected Herewith ana publicity &C.
tvities.
The North American acquired its Arst
interests in Washington utilities about
six years ago when it purchased the
Washington Rapid Transit Co. from
Leon Arnold, who now operates bus
lines throughout Northern Virginia and
the Shenandoah Valley. It disposed
of the bus company shortly afterward,
however, to Harley Peyton Wilson,
when the legality Of the coEnpany's
purchase from Arnold was questioned
under the provisions of the La Toilette
anti-merger act. Wilson Is Q member
of the board Of directors Of the North
American Co., and owns 90 per cent OF
the capital stock of the bus concern.
He also Is a director of the washington
Railway g. Electric Co. and the Poto-
mae Electric Power Co.
Acquired Traction Stock.
After disposing Of the bus company
the North American then began acaui-
sition of stock In both the Washington
Railway a. Electric Co. and Capital
Traction Co., for the purpose Of merg-
ing these lines. Congress, however,
failed to ratify the merger agreement
which Mr.. wilson was instrumental in
negotiating.
The North American now, it Il said,
has controlling interest in the Wash
ington Railway 81 Electric, but owns
less than so per cent Of the stock Of
tia Ganika1 IRE attain