Evening star., 1935-11-17
SALE Of GAS STOCK
WATCHED CLOSELY
BY D. c. OFFICIALS
Auction Wednesday of Trust
Shares May CompIicate
Control.
CONFEREES TO RESUME
RATE TALK TOMORROW
Agreement on Sliding Scale for
Annual Correction Possible
This Week.
BY DON s. WARREN.

be sold at auction Wednesday in New
York City raised pointed inquiries in
District utility circles yesterday as to
the purposes and reasons.
The development served to confuse
further the already tangled situation
in the control of public utilities con-
Germs here by giant holding COM
panies.
The announcement was that the
General Investment Co.. formerly
known as the Public Utility Holding
Corp. of America, and the United
Founders Corp. leach proposes to sell
at public auction" Wednesday 900
shares of beneficial interest in the
Washington & Suburban Companies,
a Massachusetts common-law trust,
which controls the Washington Gas
Light Co.
Commission Watches Sale.
Members of the District Public
Utilities Commission and People,
Counsel William A. Roberts both an
nounced yesterday they are watching
developments closely" and will scruti-
nize reports Of the impending sale.
The announcement of the sale, con-
tanned in a report filed with District
Supreme Court and the Public Utili-
ties Commission, comes on the heels
of maneuvers by the North American
Co., giant utilities holding corpora
ton, to withdraw from the Federal
Securities and Exchange Commission
a proposal to divest itself of control
over the Washington Railway g. Elec-
trio Co.. which owns the profitable
Potomac Electric Power Co.
The petition to withdraw this plan
from consideration was said to have
been motivated by the announcement
by the District Utilities Commission
that it would soon investigate the rate
Of return allowed the power company
under the present sliding scale ar
rangement. This allowed net rate Of
return now Is per cent. The i'm
preston was that the commission here
would consider reduction of this
allowed net return
Doubt Move Influenced Sale.
Whether this indication of the in
tention of the District commission
had any connection at all with the
move to sell what amounts to con-
trolling interest in the Washington
Gas Co. ownership was strongly doubt
ed by some District utility experts.
Others recalled that counsel for the
commission and the company and
Peoples Counsel Roberts tomorrow
will resume conferences on proposed
adoption of a sliding scale plan for
annual correction of the rates of the
Washington Gas Co. and its subsid-
iary. the Georgetown Gas Light Co.
There are reports there is great
hope that the conferees this week will
be able to reach agreement on the
terms OF proposed sliding scale. Il
this is done, the suggested plan will
go to directors of the Washington Gas
Co. for approval, and if they approve
it will be forwarded to the District
Utilities Commission for considera.
ton.
Three Questions Raised.
District observers yesterday raised
these questions, among others, as te
the possible meaning of the move Of
the two gas company ownership in.
tereStS to sell at auction their shares
in the trust:
/. What relation will there be be.
tween the buyers of the stock to bt
auctioned to the other corporate in.
terest in the common-law trust?
2. Will there be a change in the
ownership control of the Washington
and suburban companies?
3. When and from whom did the
United Founders Corp obtain owner.
ship of as many as 900 shares o1
beneficial interest in the Washington
and suburban companies?
4. Is there possibility that the As
sociated Gas & Electric Co., of which
Howard c. Hopson is the "mastel
mind" will be interested in buying ur
control in the Washington and subur.
ban companies?
Inquiry Resumes This Week.
In connection with the last ques.
ton, it is recalled that the Hous.
Lobby Committee this week plan,
to resume its inquiry into the cam
paign against the Wheeler -Rayburr
holding company bill, which became
law at the end of the last session o,
Congress. It will recall Hopson tt
the stand and inquire into his per.
sonal income and the reason for tht
purchase Of the A. G. & E. of stocl
of the Virginia Public Service Corp
This corporation services certain
Virginia sections with electric power
gas and water.
The announcement about the auc'
ton sale was contained in noticl
to the clerk of District Supreme Court
from Sullivan & Cromwell, New Yorl
attorneys for the Washington and SUI
burban companies, and other big util
ity holding organizations, q copy o.
which was given the District Utilitie!
Commission. It said:
"As counsel for Washington &
Suburban Co.'S, we have been beer
advised by General Investment Corp
(formerly the Public Utilities Holding
Corp. of America) and United Foun'
ders Corp. that they each propose tt
sell at public auction on November 20
1885, 900 shares of beneficial Interest
in Washington g. Suburban Co.'S, Z
Massachusetts, common-law trust.
Consent Decree Cited.
"As soon as such shares are pre-.
sented for transfer, after the auction
has taken place, we shall advise vol
as to the name into which such share.
are transferred. This information Il
sent to you pursuant to the consent
decree entered in the above matters
by the Hon. Peyton Gordon, Justics
Of the Supreme Court Of the District
Of Columbia, on the 23d day Of De
cember, 1882"
Creation Of the Massachusetts com