Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-11
Gas COMPANY Deals.


assuming the characteristics of foot
ball and the Public Utilities Commits
sion, rather helplessly, is trying to fol-
low the direction Of the punts. They
were kicked out of Washington and
caught by various utility operators who
finally passed the ball to the Seaboard
Investment Trust With law on the
books that was presumably alright, the
Public Utilities Commission sought to
enforce it by tackling this trust in
court. The Public Utilities Commission
grabbed nothing but an armful of air.
The La Toilette anti-merger act was
found to be meaningless and its pro-
visions were defeated by the use of
words that have more standing In courts
Of law than anywhere else.
Now the ball has changed hands
again. The phantom Seaboard In
Vestment Trust fades away, to be re-
placed by a creation known as the
washington and Suburban Companies,
which proceeds to issue bonds secured
By stock in the concerns and places
management of the properties in the
hands of the Central Public Service
System of Chicago.
The seaboard Investment Trust has
apparently served its purpose. What
was that purpose? It's management
came to Washington with a blare of
trumpets and q beating of drums and
proceeded to tnaugurate an era OF
Bigger and Better Service, with vol
untary reduction of rates that, it was
asserted. might cost the company
100000. In the meantime it pro-
eeeded to carry on hot sales cam
paisn designed to increase the use Of
Ras and educate the public in use Of
one Of Natures blessings. 1t increased
It's pressure, despite regulations against
such increases, possibly to supply gas
required for new appliances sold. But
the increased pressures resulted, ac-
cording to the evidence in the hands
Of the Public Utilities Commission, in
higher gas bills. At any rate, the gas
business boom was undertaken, accord
ang TO the commissions former chief
engineer, now an assistant to the presi-
dent Of the gas company, with some Of
the conditions complained of resulting
Sfrom the adding Of increased burdens
20 Q transmission system Of poor In
herent design without the development
Of plans 10 care for expansion" Gas
bills have increased. The reason they
have increased, according to the quoted
remarks Of one gas company ofhcial,
% that people are eating more in
homes than in restaurants. They are
using more gas. That is why they are
paying more"
But now Che seaboard Investment
Trust has served its purpose, whatever
&c h. A new holding company enters
the scene. Management is transferred
% . Chicago company, with resulting
uncertainties, at present, as to the fate
of personnel concerned With present
management.
The Public Utilities Commission has
Instructed the corporation counsel to
md out who owns the gas companies,
and how. The investigation should not
be . superficial inquiry. AL of the
snorts made to test the legality of the
4rst transfer Of ownership should be re-
peated and increased TO test the validity
OF this second transfer. BY law the
Public Utilities Commission Is given
specific authority over consultations
and financing Of utilities property in
the District Of Columbia" so far the
Public Utilities Commission has been as
much ignored in the current financing
and consolidation plans as II it never
existed.
BY Law the Public Utilities Commits
sion is supposed TO examine changes in
ownership, financing, stock issues, etc,
70 make sure they are in the public In
terest." The people here have no way
OF knowing whether the gas company
deals are in their intsrest. They may
be, but it Is presumed that they are
chiefly In the interest Of the utilities
operators, who do not form holding
companies TO swallow UP local concerns
for the fun Of it.
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