Evening star., 1935-11-08
NORTH AMERICAN
PLAN UNCHANGED
BY COURT ACTION
Roberts and Others Believe
Holding Company CON-
pliance Not Motive.
REPORT TO REVEAL
OTHER INFLUENCES
Utilities Commission Data Await
ed on Proposed Relinquish-
ment of Control Here.

The decision of Federal District
Judge William C. Coleman of Balti-
more that the Wheeler Rayburn
death sentence" holding company act
is unconstitutional. is not expected to
have any effect on the move of the
North American Co. to relnquish con-
troll Of the Washington Railway g.
Electric and Potomac Electric Power
companies.
William A. Roberts. peoples counsel
before the Public Utilities Commission,
and other authorities on the Wash
ington utilities situation, believe the
primary motive behind the North
Americans action was not compliance
with the holding company act.
Roberts, particularly, is satisfied
there are other motives which he pro-
poses to reveal in a report on the plan
he is preparing for the Utilities Com
mission and the Securities and Ex-
change Commission. These factors, he
said, have not been changed by Judge
Coleman's ruling.
Three Motives Seen.
Although Roberts has not indicated
what his report will contain, he ex-
pressed several days ago the opinion
that the North American apparently
had three motives in view when it de-
cided TO leave the Washington utilities
field:
l. To release control over its WASH
ington interests at time when there
is good market. 1t has been brought
out that under the proposed plan
North American would make a huge
profit.
2. To comply with the utilities act,
which, however, is not necessary for
two years.
3. To escape the threatened inva-
sion of Washington by the Associated
Gas & Electric Co. which recently
acquired the Virginia Public Service
Co.
In the meantime Chairman O'Con-
nor Of the House Rules Committee
and William H. Collins. committee
counsel, went ahead with plans for
resuming the investigation into the
lobby conducted by certain utility
holding corporations against the
Wheeler -Rayburn bill
The inquiry is expected to be re-
newed next week, although a definite
date has not been fixed Howard c.
Hopson, reputed 'master-mind' Of
the Associated Gas e. Electric Co., Is
to be recalled as the first witness.
The committee will question him par
ticularly about his personal income
and the disposition of the s1.000,oOO
Hopson previously disclosed had been
borrowed by North American to fight
the utilities bill.
Line of Questioning.
Collins said Hopson also would be
OF Toned about his company's latest
az ,'isition in Virginia. the Virginia
Public Service Co., which serves elec-
triclty to a large part of Arlington
County and other sections of the State.
Virginia Public Service. however, is
facing serious competition in Arling-
ton County in view of the reported
plans of the Potomac Electric Power
Co. to extend its lines throughout the
county Potomac Electric Power Co.,
through its subsidiary, the Braddock
Light g. Power Co., now serves a small
portion of the county in the vicinity
Of Rosslyn at rates substantially lower
than those of Virginia Public Service.
Encouraged by reports of the Po-
tomac Electric Power Co. S move the
Arlington County Public Utilities
Commission has renewed its invita-
ton to the utility to extend service
throughout the county. and last night
the Arlington County Civic Fedora
tion took a similar step.
Several years ago the Arlington
County Commission initiated a move
to get lower electric rates by urging
Potomac Electric Power Co. TO enter
the field in competition with the Vir-
ginia Public Service. Four thousand
potential subscribers in the county
were offered the Washington company
at that time.