Evening star., 1936-09-30
Observers Say Commission
Will Not Agree to Sum
! Of $1,375,00O.
THAT OR NOTHING ELSE,
TRUST COUNSEL SAYS
Board Expert and Company Are
at Odds Over Combined Reve-
nue. Expectation.


Alexandria and Hyattsville Gas Cos.
from its parent trust at q cash figure
Of $1,375, 900, it was predicted today
at the District Building by observers
who have followed testimony before
the commission during the past two
days.
The commission itself, engaged in
close analysis of the mass Of con-
flicting testimony taken at the two
day hearing, made no announcement
what its decision would be, but OBJ
servers were convinced the commiS.
sion would not approve the declara-
tion by the Washington company
that the proposed price must be ap-
proved or rejected as it stands.
Observers said the commission
might have been convinced Of the de-
STABILITY of the official consolidation
of the operations Of the Washington,
the Hyattsville and the Alexandria
plants-all Of which now are con-
trolled by the Massachusetts, Common
Law Trust, the Washington l. Subur-
ban Cos.-but that It was not pre-
pared to approve the merger at the
one price of s1,375,000.
Figure Only Is Held Question.
The commission was told yesterday
by counsel for the trust, who is also
counsel for the Washington company,
that that figure, land nothing else,"
was before the commission for deci-
sion. Unless that declaration by the
Washington company counsel is over
ruled by the Washington company or
the Massachusetts, Trust observers say
the commission undoubtedly will re-
ject the petition.
Calculations to show the ownership
of the two suburban plants, If In
effect this year, would result in
net annual cash burden" Of between
S13,s36 and $24,785 were offered by
commission expert at the hearing
yesterday.
A company spokesman declared
and produced figures to show-the
purchases would prove profitable, that
In 1888 there would be available for
dividends or surplus $4,000 from
tllS OPC1 dG4OlAos
The scene of hearings on the pro-
posals for reorganization of the owner
ship of the gas industry here was to
have shifted today to the Securities
and Exchange Commission, but 1t Is
announced the Federal agency will
not take up the Washington company's
petition for purchase of the two
suburban concerns until the day
after the District commission has
issued its decision. Just when this
will be was not stated.
Prompt Decision Hoped.
Company officials made it clear
they are hoping for prompt favor
able decision. This is related to the
move made by the Washington and
suburban companies. the Massachu-
sets common-law trust, to sell to the
public all of the 10000 shares it now
holds in the Washington company, or
81 per cent of the total of common
shares.
The hearing has developed that the
plan is for the Washington company
to buy the suburban companies, also
controlled by the trust, before the
trust sells out the control it holds over
the Washington company. Otherwise,
it Is explained, the trust would still
have the two suburban concerns on
its hands, one Of which, the Alexan-
dria company, has never paid divi-
dends and has been unable to pay
interest on the larger portion Of
debt of 100000.
Testimony that the acquisition of
the neighboring plants would not
spokesmen claimed came yesterday
afternoon from Byers NICK. Bachman,
commission chief accountant.
= Figures Are Presented.
He presented a series Of studies
which showed that as of this year
there would be an annual net cash
burden on the Washington company
Of $16,934 from purchase of the Alex
andria company This was calcu-
lated on the basis of the Alexandria
company continuing to manufacture
Its own gas. BY changing factors to
loan costs and the amount Of improve
ments to be made he arrived at a
''burden" figure Of $19,184. On the
basis of the Alexandria plant buying
gas from the Washington company he
arrived at the figures of $6,247 and
Ss,4s7 by similar methods Of calcula-
tion.
For the Hyattsville company Bach
man estimated that the 1886 burden"
would be S7,S51 on one set Of calcu-
iations and $5,414 on another.
Income Showing.
Robert C. Overs, treasurer of the
Washington company, submitted con-
siderable additional testimony yester-
day to show that whereas the Wash
ff,gton company alone this year would
produce q net corporate income OF
S706, 200, the figure would be increased
to $728,626 If the two suburban COM
panies were in joint operation with
the Washington company.
Estimating that in 1898 the three
companies combined would produce
S740,000 available cash for payments
to its stockholders, Overs said this
Sgure would include payment Of $780,
600 Of dividends on new stock issue
OF $4,000, 600 which the company pro-
poses to sell to the public.
THE $3,000,000 stock issue, which
overs suggested would be preferred
stock, would be to replace bank loans
which would be needed to make the
purchase payment Of $1,375.oo0 for
the two suburban concerns, and to
provide funds as well for needed i'm.
prpvements to the plant of the Wash
inston company.