Evening star., 1932-01-03
UTILITY FIRM GOES
INTO RECE|VERSH|P
American CommonWeaIthS
Power Corporation Is Taken
Over by 3 Receivers.
By the Associated Press.

BY the Associated Press.
NEW YORK, January 2.-Three re-
ceivers for the American Common
wealths Power Corporation, appointed
on the last day Of the old year, began
today their new work of administering
the far-fung affairs of the $200,000,-
600 public utility holding company.
The corporation passed into the
hands of its receivers after petition
had been filed in Dover, Del, on
Thursday. Inability to meet maturing
obligations was admitted by the cor
poration in its answer. Receivership
was accepted voluntarily in order, it
was explained by representatives Of the
company, to safeguard its assets.
The 1881 stock market decline cut
heavily into the dollar valuation of the
companys large holdings of securities.
To sell these now, at prices about one
half those in January of last year,
would work great hardship on stock
holders, an officer of the company said
today 1t was to avoid forced selling
of this character, at heavy sacrifice, he
said, that induced the cornoration's
directors to agree to the request for a
receivership.
President Aids Receivers.
i. f1ulSNlJ, pI6SlQGIlJ anu
prime mover in the growth of Amer
icsn Commonwealths Power Corpora
ton, was busily engaged in confer
ences here designed, it was said, to IA
Cilitate the operations of the COM
panys affairs by its receivers.
Two of the three receivers of the
company were said to be familiar with
the company'S operations. They are
Herbert L. Nichols and Herbert w.
Briggs. Nichols is a partner in the
Chicago investment house of Nichols &
Terry and was described as a large
holder of American Commonwealths
stock. Briggs is his partner and has
his Offices in New York. John A. Gar
member Of the group. He is a vice
president Of the Delaware Trust Co.
The company controls properties fur
niShing electricity, gas, water, ice and
other utility services to 522 communi-
ties with an aggregate population Of
1858, 900. Subsidiary companies operate
in Alabama, Arizona, Arkansas, Colo
rado, Florida, Georgia. Indiana, Kansas,
Louisiana, Maine, Massachusetts,, Michi-
gan Minnesota, Missouri, Nebraska New
Mexico, New York, North Carolina,
Ohio, Oklahoma, South Carolina, South
Dakota, Texas, Vermont, Virginia and
evan and British Columbia in Canada.
Stocks Break Heavily.
Three capital stock issues of Amer
lean Commonwealths Power, listed on
the New York Curb Exchange, broke
today upon announcement of the re-
ceiverShip. The class A common stock
sold down to 25 cents a share, then
rallied to its closing price of so cents,
where it was down 81 cents net The
class B common sold at 81 cents a
share, of 62 cents since Thursday The
company's first preferred stock lest
$3.50 a share, breaking to $3.50 in mar
ket valuation since Thursday.
The company's capitalization con-
sistS Of the following funded debt:
$4,000, 900 series A debenture per cent
bonds maturing in 1852; s4,616,000 gold
debenture 512 per cents maturing in
1853 and $9,48l 900 convertible gold
debenture per cents due m 1910.
The capital stock outstanding on June
80, 1881, consisted Of 2i669 shares Of
ST cumulative first preferred stock, 54,-
693 shares of $3.50 cumulative series
first preferred, 68,950 shares of Sc cum
ulative series first preferred, $l3,592 81
cumulative second preferred series A
stock, 1,578,25l shares of no par value
class A common stock and 459,587
shares OF class B common stock, also OF
no par.
Company's Subsidiaries.
Subsidiaries of American Common |
wealths Power Corporation are COM
prised of the American Community
Power Co. and its 18 affiliated COM
panies, chief of which are the Com
munity Power g. Light Co. and the
General Public Utilities Co.; the Amer
ican Gas & Power Co., which controls
nine operating companies; the Domin-
ion Gas g. Electric Co. which owns
10 companies operating in Canada; the
Ramapo Gas Co., the West Shore Gas
Co. the Peoples Gas Co. and the Amer
tcan Commonwealths Power Associates,
which is a Massachusetts voluntary in
vestment trust which holds control OF
five New England utility properties.
An official OF American Common
wealths Power Corporation said intor-
mally today that termination Of the
receivership would depend solely upon
the question when business revival takes
place