Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-13
Roberts Reaches Boston for
Inquiry Into Transfer of
Company'S Ownership.
KEECH TELLS OF PLAN
TO EXTEND PROPERTIES
Department Of Justice Sought to
Help Commission Ascertain
if Law Was Broken.

William A. Roberts, assistant cor
poration counsel of the District, arrived
in Boston today to begin a sweeping
facr-flnding inquiry into the high
finance involved in the transfer of own
ership of the Washington Gas Light
Co. to determine whether the nesotia-
tons connicted in any way with the
provisions of the La Toilette anti-mer-
ger act.
At the same time Corporation Coun-
sci William w. Bride, general counsel
for the Public Utilities Commission, re-
quested the Department of Justice to
assist in the investigation. The aid OF
this Federal agency was sought because
OF the commissions lack of funds as
well as an organization to make such a
thorough check-up as is planned.
Richmond B. Keech, peoples counsel
before the commission. also is cooper
ating with Mr.. Brides ONCE and the
commission, and turned over to them
this morning information given to him
which he declared purportS to show that
the owners of the Washington Gas
Light Co. had planned to get a nlonop-
oily on various gas operating utilities
within a radius of $50 miles of Wash
ington. These steps apparently Were
taken, he said, in the face of a state
ment by the Seaboard Investment Trust
when it acquired control OF the WASH
ington Gas properties more than year
ago, that it did not propose to take over
any additional operating companies.
Sought Charleston Plant.
Mr.. Keech said the source of his in
formation was Wallace Dunn, 2402
Thirty-Seventh street, an engineer for
merly employed by the Washington Gas
Light Co., who declared he was en-
gagged primarily to procure control OF
the gas plant at Charleston, w. Va.
The negotiations failed, however, and
Mr.. Dunn, according to the peoples
counsel filed suit in the District Su-
services against the washington Gas
Light Co., George A. G. Wood, its
president, and the Seaboard Investment
Trust, which recently transferred con-
troll of the gas properties to the Wash
lngton & Suburban. Gas Cos.
MIR. Dunn told him, Mr.. Keech said
that he was instructed to buy the con-
trolling interest IN the Charleston plant
in his own name, and Subsequently
transfer it to the gas company The
Charleston plant. he Is said to have re-
u,
huge gas system embracing Harrison
burg. Richmond, Fredericksburg and
Farmville, Va, and Pocomo and Cam
bridge on the eastern shore of Mary
land.
The plan of operation, Mr.. Keech was
informed. was the maintenance of
skeleton forces at these plants, with the
Washington office serving as the engi-
nering, supervisory and accounting
headquarters.
Sale Authorized Yesterday.
The plant al Cambridge Mr.. Keech
said, was recently acquired by the Gen.
trail Public Service Corporation, which
has taken over the operating manage
ment of the gas properties in the
Washington area formerly held by the
Seaboard Investment Trust. These in
clude the Washington and Georgetown
companies. the Alexandria Gas Co. and
the Washington Suburban Gas Co.
The Washington Suburban Co. was
formerly known as the Hyattsville Gas
Co. and its sale to the Washington
d Suburban Cos. was authorized yes
terday by the Maryland Public Service
Commission.
Under the order of the Maryland Com
mission, the Washington & Suburban
Cos. acquire al 1.-The outstanding capt.
tai stock of the Hyattsville utility, which
consists of $500 shares without par
value, and all the outstanding bonds of
the company consisting of 1921 900, the
principal amount of the first mortgage
gold bonds 81 per cent series due in
1913. and to pledge this stock as part
security for its So per cent collateral
trust gold bonds
In authorizing the sale, the Mary
land Commission also granted permits
SIGN for the transfer to the Continental
Illinois Bank & Trust Co. as trustees
and the holding by it, as trustee, for the
property. of collateral security only of
all the outstanding capital stock of the
Washington Suburban Gas Co.
All Of these developments, Mr.. Keech
and public utility officials believe, show
relationship between the Central Pub
lie Service Corporation, a gigantic pub
lie utility concern, and the Washington
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