Evening star., 1932-12-24
RULING GIVES GAS
SITUATION EFFECT
Of ARMED TRUCE
Litigation Ended for Present
Between Commission
and Stockholders.
BARS INTERFERING WITH
MANAGEMENT HERE
Judge Gordon Requires Sworn No.
tifcation of Court Before
Changing Set.up.

The decree signed by Justice Peyton
Gordon in the case involving owner
ship Of the Washington Gas Light Co.
was regarded today as ef1ecting an
armed truce between the Public Util-
tiles Commission and the foreign own
ers of "a per cent OF the local COM
pany's stock
further litigation between the commits
sion and the stockholders. They may
s not they se wsh
the management of the Washington
concern, nor may they change the pres
ent set-up without notifying the court
of the facts under oath.
The La Toilette anti-merger act is
designed to prevent ownership Of Wash
ington utilities by foreign holding or
public utility corporations. Today
there is no question that the local COM
pany IS owned both by foreign utility
and holding corporations, but the legal
situation IS saved by the interposition
of common law trust between the 10
cal company and its ultimate owners
This situation was declared legal In lit
igation two years ago between the COM
mission and the SeabOard Investment
Trust, by Chief Justice Alfred A. Wheat
OF District Supreme Court.
Charging of Fees.
At that time, however, although the
trust was supposed to own the stock
those who owned stock in the trust
proceeded to run the gas company, and
to charge it substantial fees for the
benefit OF their counsel and assistance
The commission, on discovering the
facts. issued an order forbidding any
further holding or voting of the WASH
1ngton company stock by large chain
of outside corporations the most active
of which were the Central Public Serv-
ice Corporation of Chicago and a host
OF affiliated and subsidiary corporate tions
Since that time, however. economic
necessity has forced the Central Pub
lie Service group of corporations out of
the ownership through sale Of their Sc
curltieS put up as collateral for loans
from the Chase National Bank and
others. The present owners were will
ing to agree to refrain from any acts
OF management, and to limit their ac-
tivitieS to voting for directors of the
local company, and the commission
was willing to agree to amend its order
SO long as the owners so limit them
selves. The commission reserves the
right expressly, however. to issue new
orders II deemed necessary by any ac-
tion on the part Of the present owners.
Burroughs Disappearance.
One of the interesting sidelights of
the present situation is the disappear
ance of Fred S. Burroughs, who ar
ranged the purchase of the stock for
EnrhAS
Corporation, New York investment
bankers. The stock was listed yester-
day on the local exchange at $50 bid
and $40 asked. Its par value Is $40.
Throughout the early battles between
the commission and the outside owners
Burroughs was star witness. AS vice
president of the Harris Forbes con-
cern his word was law. 1t Is said that
he was principally responsible for the
appointment Of George A. G. Wood,
later deposed, as president of the local
pears nowhere in the proceedings.
Albert E. Peirce. president Of the
Central Public Service Corporation, has
likewise faded from the picture, along
with his vast chain of corporations and
his privately-owned Westfleld Trust.
The corporations which now own
stock in the Washington & Suburban
Co. "a common law trust. which in turn
owns 1880 out Of 10000 shares
of the stock of the Washington Gas
Light CO.. are:
Chase National Bank Of New York,
1900: Public Utilities Associates, 600;
Continental Illinois National Bank e.
Trust Co., 1000; Utility & Industrial
Corporation, 1900; American Equities
Corporation. 100; Public Utilities Hold
ing Corporation Of America. 900; United
Founders Corporation, 480; American
& General Securities Corporation, 100;
Second International Securities Cor.
poration. 120, and United States g.
British International Co., Ltd, 120.
Chase Bank Affiliate.
OF the above corporations. the Public
Utilities Associates Is group affiliated
with the Chase Bank. The Continental
Illinois Bank is said to have no con-
nection with the Chase Bank The
American Equities Corporation is said
to have no connection with any other
group in the picture. The Public Util-
ity Holding Corporation Is said to be
controlled partly by the Chase Bank
and the last four groups mentioned are
all part Of the United Founders System.