Evening star., 1935-11-03
HOUSE MAY PROBE
NORTH AMERICANS
PLAN TO QUIT D. c.
Lobby Committee Also May
Look Into Rivals Vir-
ginia Activity.
ROBERTS TO STUDY
HOLDING FIRMS MOVES
Ham, Fleming and Callahan Re.
sign Washington Railway &
Electric Co. Directorships.

The House Lobby INVESTIGATING
Committee, it was learned last night,
may delve into the unexpected move
of the North American Co., one of
the country's largest utility holding
combines, to divest itself of indirect
control of the Potomac Electric Power
Co. and the Capital Transit Co.
At the same time the committee
will inquire into the recent acquisi-
ton by the Associated Gas & Elec.
trio Co., a rival Of the North Amer
ican, of the Virginia Public Service
Co.
Plans have been made by Chair
man O'Connor of the Lobby Commit.
tee to resume about November Is in
vestigation of the campaign waged
last Winter against the Wheeler-Ray.
burn holding company bill by a mum.
Der of the country's leading utility
interests.
Meantime, William A. Roberts. peo-
pies counsel, told the District Public
Utilities Commission he would make
an exhaustive investigation of ths
North American Co.'S move to leave
the Washington utilities field.
Motives Suspected.
Roberts expressed the opinion the
North American Co. apparently had
three motives in view when it decided
TO relinquish control of the transit
and power companies.
/. To comply with the public utili-
ties act of 1885, which, however. will
not be necessary for two years.
z. To release its control over Its
Washington interests at a time when
there is a good market for the
security
s. threatened invasion of the Wash
1ngton utility field by the Associated.
"mch now controls indirectly the
stock OF the Washington. Georgetown.
RoSslyn and Alexandria gas companies.
The North American Co.'S action
IN attempting to rid itself of the
washington holdings resulted in the
resignation of William F. Ham as
president and director of the WASH
ington Railway g. Electric Co.. a hold
ing company for the Potomac Electric
Power Co. Ham. however. will remain
as director and chairman of the
board Of both the power company and
the transit company. He explained
his resignation was due to the severity
Of "onerous' liabilities and penalties
Of the securities act.
Fleming Also RESIGNS.
Two other directors-Robert v,
Fleming, president of Riggs National
Bank and first vice president of the
American Bankers Association. and
D. j. Callahan, supreme treasurer of
the knights of Columbus and former
president of the Norfolk g. Washing
ton Steamboat Co., also resigned for
almost similar reasons.
Ham was succeeded as president Of
the railway company by DR.. William
c. Mcclellan, who is also president of
the Potomac Electric Power Co. AL
though they resigned as directors of
the railway company, both Fleming
and Callahan remain as directors of
the Potomac Electric Power Co.
The resignation of Ham and the two
directors came on the heels of their
refusal to sign a statement to the Sc
curities and Exchange Commission for
registration of the stock involved in
the plan of the North American Co.
to relinquish control Of its Washing
ton holdings.
The action of the North American
Co. came to light when it filed with
the Securities Commission statement
proposing that the $1,000 shares of
common stock of the railway company
be deposited, and that there be issued
in its stead 1,625,O0 participating GER
tif1cates. The North American Co.
owns 62,197 shares, or 1858 per cent
Of the $4,000 shares of the Sl0O COM
mon stock of the railway company and
1927 shares or 1909 per cent of the
preferred stock of that company. The
two holdings combined give the North
American more than so per cent of
(See PROBE, Page 81