Evening star., 1935-11-06
UTILITIES BOARD
BEGINS INQUIRY IN
WIRE. TRANSFER
To Determine Whether Move
Conflicts With Anti
Merger Act.
ARLINGTON'S REQUEST
TO PEPCO is Renewed
Board Chairman Asks Company
to Extend Power Service
Into County.
The Public Utilities Commission to-

The Public Utilities Commission to-
day began its proposed scrutiny Of
the plan of the North American Co.
to divest itself of control of the Wash
ington Railway g. Electric and Poto-
mac Electric Power Companies, pri-
marily to determine whether it is in
conflict in any way with the La
Toilette anti-merger act
The North American is proposing
that its 62,1e7 shares in the Wash
lngton Railway & Electric Co., which
owns the power company, be put into
the hands of non-voting trust and
participating shares in the trust be
sold at $50 share.
At the same time, Col. Calvin KEEP
hart, chairman of the Public Utilities
Commission Of Arlington County. Va.
renewed the commissions request to-
the Potomac Electric Power Co. to
extend its service throughout the
county.
Kephart was actuated by reports
that the power company apparently
is ready to stretch its lines through
out the county to meet the invasion
of the Associated Gas & Electric Co.,
which recently acquired the Virginia
Public Service Co. The Virginia Pub
lie Service Co. serves electricity to a
large partsof Arlington County. The
Potomac Electric Power Co.. through
it's subsidiary, the Braddock Light g.
Power Co., provides current for a
small section of the county in the
vicinity of Rosslyn.
Differences in Trusts.
Richmond B. Keech, vice chairman
pointed out that the proposed nom
voting trust differs from a common
law trust. which the Supreme Court
has upheld. That fact, he said. has
injected new question into the North
American Co.'S move which the COM
mission must consider because of the
La Toilette act.
The commission and William A.
Roberts, peoples counsel, also are
making an exhaustive study of copies
of the documents filed by the North
American with the Securities and Ex-
change Commission, asking permission
to release its Washington properties.
The documents include four printed
publications, comprising several hun
dred pages. Among them are the
registration statements of both the
North American and the railway com.
pany.
Roberts said as soon as he COM
pletes his study of the North Ameri-
can Co.'S plan, he will file a written
report with the Utilities Commission
and send copy to the Securities and
Exchange Commission.
In the meantime the bid price Of
the common stock of the railway COM
pany remained at $3.50 on the WASH
ington Stock Exchange after a sensa-
tional rise from $3.50 following pub
lication of the North American pro-
poSals. None of the stock was offered
for sale. however.
Kephart Statement.
The $3.50 bid brings the market
price of the stock within S100 of the
probable value of the participating
shares to be issued against the common
stock.
Col. Kephart of the Arlington
County commission issued the follow
ing statement in connection with the
electric situation in that area:
Il have known for some time that
the Potomac Electric Power Co. was
dSpleaSed at the acquisition by the
Associated Gas g. Electric Corp. of
the Virginia Public Service Co., which
serves Arlington County, but only the
Potomac Co. is to blame for its hav-
ing been caught mapping. BY a past
understanding between it and the Vir-
ginia Public Service Co. not to invade
each others territory, in which it had
nothing to gain and everything to
lose, it refrained from extending its
lines in the county despite the appli-
cation to do so initiated by this body
in 1888 by the filing of petitions
signed by 1000 or more electric users
in the county.
The lines Of the Braddock Light
&, Power Co., the Virginia subsidiary
of the Potomac company. are already
in contact with important sections of
the county, and all that has been
necessary is an extension of these
lines. Now that Arlington County is
rapidly building up, apparently the
Potomac company realizes its error in
having been inactive. especially when
it was invited to enter the field by
the consumers. However, it is still
not too late for that company to
proceed. The petitions with the 1000
names should still be in its files and
may be treated as standing invi-
tation for the proposed line extensions
throughout the county. So far as
can see, there is no reason to treat
these petitions as dead issue, and
I am confident that no difficulty would
be experienced in signing up prospec-
tive consumers along weu-located
projected lines"