Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-23

any use whatsoever Of records irrele-
want to the issue.
j. Spaulding FIannery. who said he
had been retained by Mr.. PIERCE this
morning. urged acceptance of stipu-
lation, rather than the undertaking of
a laborious investigation which would
last two weeks or two months, at the
end Of which the commission would
have no more facts than 1t could get
by the stipulation.
Owns WestfieId Trust.
Mr.. PIERCE said he owned the West
field Trust, which was established
March /, 1880, to acquire other trusts.
1t appeared, however. that the West
field Trust really acquired group of
what was POLITICALLY described as tree
corporations" 1t is said there were IL
of these to be acquired, but the names
OF only three have been mentioned thus
far. They are the Ashwood. the Beech
Tree and the Pine Tree Corporations.
The Westf1eld Trust, he said. was or
ganized by the PIERCE Investment Co.,
which he owns, and which paid the
Westfield Trust $4,000 for the bene-
f1cial shares. This $4,000 was later
repaid to the PIERCE Investment Co. by
Mrs. Peirce.
Mr.. PIERCE said he does not know
whether he receives any income from
the Westfield Trust and that he does
not control the action of the trustees
under the trust. He said he has tried
to tell the trustees how to invest the
money but they would not listen to
his advice !, He said, however, that
they had used some OF it to buy Central
Public Service stock below the market
price.
Then it appeared chat II "tree" COR
porations were organized to hold stock
in the New York and Richmond Gas
Co. That stock was bought out Of a
loan of $13,725,C00 by the Central Pub
lie Service Corporation to the West
field Trust on the note of the Westfield
Trust.
Interested Bankers.
Mr.. PIERCE related the events leading
up to the purchase OF the Washington
Gas Light Co. After few preliminary
failures, he went to Harris Forbes &
Co., investment bankers of New York,
and they interested four other bank
ing houses, who put up million dollars
each and borrowed $l0,500, 900 from the
Chase National Bank to swing the deal
They organized the Seaboard Invest
msnt Trust, into whose name the WASH
ington Gas Light Co.'s stock was trans
ferred, and then gave the Central Public
Service Co. a two-year option to buy
the beneficial shares of the Seaboard
Investment Trust for 100000 and as
sumed the obligation of the loans.
The option was not exercised and
expired in the Spring of 1881. The
stock was bought by the Westfield
Trust instead, which borrowed $10,500,-
600 from the Southern Cities Public
Service Co. to retire the loan from the
Chase National Bank. Then the West
field Trust sold $6.400,000 worth of
bonds In the Seaboard Investment
Trust, which had meantime changed its
name to the Washington & Suburban
Cos, to the Harris Forbes g. Co., to be
resold to the public Out OF proceeds of
this sale the Washington 81 Suburban
Cos retired loan of 81 ,000, 600 made by
Washington banks to the Alexandria
Gas Light Co., which had been acquired
by the washington & Suburban Cos.
In addition to the preferred shares
and bonds mentioned, 17l.000 shares OF
common stock Of the Washington g.
Suburban Co.'S are owned by the West
held Trust, Mr. Pierce said.