Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-04-19
HEARING REVEALS
FINANCIAL CONTROL
|0F GAS COMPANY
Roberts Traces Ownership
of Stock Through Maze
of Corporations.
CHASE NATIONAL BANK
TOOK PART IN PURCHASE
Utilities Groups, Holding Concerns
and Trust Companies
Involved.

The story of the acquisition and
present ownership of majority of the
stock of the Washington Gas Light Co.
was spread on the records of the Fed
eral Trade Commission yesterday
Roberts, counsel for the Public Utilities
Commission.
Under questioning by Judge Robert
2. Healy, Roberts said 81 per cen: of
the stock is now owned by the Wash
lngton & Suburban Cos, a Massa-
chusetts common law trust, successor
TO the Seaboard Investment Trust
There are 5000 common shares of
beneficial interest common stock in
this trust, owned as follows:
Chase National Bank, 1900; Public
Utility Associates, Inc, 600; Public
Utility Holding Corporation of America,
900; United Founders Corporation, 43o;
American & General Securities Corrc-
ration. $50; Second International Sc
curltles Corporation, 100; United States
British International Co., Ltd. 100;
american Equities Corporation, 100;
Utility & Industrial Corporation, 1000,
and Continental Illinois Bank & Trust
Co., 1000.
Other Holdings Shown.
1soDe4 10 lSotll4eu lilat FuDIlC Ouuty
Associates, Inc, is owned half by the
Investors saares Corporation and half
by ChaSe-HarTIS-FOrbes Corporation,
the latter an affiliate COR until recently
an afillate) OF the Chase National
Bank
Public Utility Holding Corporation of
America stock is widely held by the
pubic and part Of it is owned by Public
Utility Associates, Inc. The latter cor
pcration owns small block of stock
In the United Founders Corporation,
which in turn owns a large block of
the Public Utility Holding Corporation
OF America. Public Utility Associates.
Inc, owns stock in the Central Public
Service Co. and stock and bonds of the
Consolidated Electric g. Gas Corpora
| ton and 153024 out of 100000 shares
Of United Founders
American & General Securities is con-
trolled by United Founders Corporation
Second International Securities Cor
poraticn, United States g. British Inter-
national Company, Ltd, are both owned
by American Founders. which is con-
trolled by United Founders.
The American Equities Corporation
(now in receivership) is the relic Of an
at one time vice president of the Central
i Public Service Corporation.
Utility & Industrial Corporation Il
| owned by H. NJ. Byllesby g. Co.
The Continental Illinois Bank &, Trust
Co.. (noW national bank is trustee
,, under an indenture of trust executed
by the Washington & Suburban Cos.
Trustees OF the Washington & SUBJ
urban Cos. according to Roberts. are
sherman Damon, vice president of the
Chase-Harris Forbes Corporation Of
-
urer OF the same corporation, and Will
liam w. Howard, connected with that
! corporation. but holding no Office.
S10,000,000 Stock Pledged.
Roberts said these men had been
trustees continuously since the founda-
ton of the Seaboard Investment Trust.
except that Howard resigned for three
days. during which time his substitute
pledged s10000,000 worth of stock in
the Washington Gas Light Co. as COL
lateral for loan by the Riggs National
Bank of 100000, with part of which
the Alexandria municipal gas works was
acquired. The stock. however. was at
the same time pledged as security for a
note of 100000 in favor of the West
field Trust
He said the obligations of the Wash
mgton & Suburban Cos included
$6,500,000 in per cent bonds, 10000
shares of per cent cumulative prefer
red stock. and 5000 common shares Of
beneficial interest. The dividends on
the preferred stock have been passed
for the last three pay days, he said,
and there was no prospect of any phe-
nomenal increase in the net income Of
the Washington Gas Light Co., which
Is the Washington & Suburban Co.'S
principal source of income
Relating how the Chase National
Bank came to own its shares. Roberts
said the bank participated in the pur-
| chase of the Washington Gas Light Co.
stock from the beginning They and
others advanced the 100000 used in
making the initial purchases in 1929.
The Westfield Trust, owned by Albert
e. PIERCE, president of the Central Pub
lie Service Corporation, executed a note
for this $4,000 900, and turned over to
the bank the stock in the Washington
& Suburban Cos as collateral. When
this note remained unpaid. the Chase
National Bank sold the collateral (stock
in the Washington & Suburban Cos)
at public auction, and at that auction
the bidders were the same persons who
had first put up the money, and they
bid it in in the same proportions as
their respective contributions to the
fund.