Evening star., 1936-10-01
PEOPLES COUNSEL
URGES APPROVAL
FOR GAS COMBINE
Roberts Asks Commission
to Back Purchase at
$1,375,000 Price.
FEARS DOOR MAY OPEN
TOA.F.G. E. OTHERWISE
Figure Maximum, but Negotia.
tions to Lower It Would Be Un.
der Bad Conditions, He Says.

PeOpie COuIlSel WUlldIn n. xSOp-
ertss today urged the Public Utilities
Commission to approve the petition of
the Washington Gas Light Co. to
buy, from its parent holding trust,
the Hyattsville and Alexandra gas
companies for $1,375,000.
Roberts raised the fear that If the
acquisitions are not approved the
door would be opened for the Associ-
ated Gas and Electric Co., the giant
utilities holding company, to step into
the gas utilities field here. Howard
C. Hopson, who led Senate and House
LOBBY committee agents on a perplex-
ing chase more than year ago, when
they were seeking him as witness,
Is dominating figure in the
A. g. & e.
Members OF the commission had
no statement to make Immediately
on the Roberts brief, but the way
Is now clear for the commission to
reach q prompt decision on the case.
The company decided not to file a
brief. Yesterday predictions were
heard that the commission would re-
feet the petition primarily because
the company insisted it wanted an
answer on the price.
Thinks Price Is Maximum.
'~The price of $1,375, 900 would ap-
pear to be the maximum reasonable
price which should be paid to the
Hyattsville and Alexandria properties, "
Roberts said.
While previously he had stated he
thought the price from 100000 to
e200, 900 too high, he said in his brief
II know Of no way In which the re-
duction In price can be effected ex-
cept by rejection of the application
and the subsequent negotiations by
the officials of the Washington COM
pany and the controlling majority
stockholders, the Washington and
Suburban companies. 1t would ap-
pear that any such negotiations would
occur under most disadvantageous cir
eumstances."
Roberts approved the methods Of
financing proposed in the application
Is the most practical available in the
present cash position Of the Washing
ton company"
The plan Is for the company to
obtain bank loans so as to be able
to pay cash to the trust, which con-
trolls the Hyattsville, Alexandria and
Richmond gas concerns in addition
to holding "a per cent Of the l30, 900
shares of common stock of the Wash
ington company. The bank loans later
would be replaced by sale to the pub
lie of $3,000,0 900 of preferred stock
which would be used to make needed
Washington company improvements.
Move Sequel to Stock Plan.
The purchase of the two suburban
concerns from the trust Is q sequel
to the move of the trust to sell to
the public its stock In the Washington
company. Apparently suggesting a
means of trying to block any feared
sale of large blocks of the Washing
ton company stock to another hold
ing trust or company. Roberts pro-
posed that the commission required
the Washington company to provide
detailed information of the progress
of the dissolution Of the Washington
and Suburban companies.
Nearly two years ago the A. G. g. E.
acquired control of the Virginia Public
Service Co., which serves electric
power to . larger area Of Virginia.
1T has been definitely determined
10 be most desirable" Roberts contin-
ued, that central control Of the
Washington company and of its sub
sidiaries should terminate at the
earliest feasible moment. In the dis
solution of the Washington and Sur
burben Companies (the hold trust)
compliance must be had with the pub
lie utility act of 1885, which involves
the sale of the Alexandria and Hy-
attsville properties. 1t follows that
this sale must take place to some third
persons If not to the Washington COM
pany.
Acquisition Held Undesirable.
Among other equities of the WASH
ington & Suburban Cos. Is control
Of the New York & Richmond Gas
Co. of Staten Island. 1t is we'll known
there have been bids for this company
on behalf of the Associated Gas &
Electric Co., which quite recently &C
quired the ownership of the electric
power property operating adjacent to
washington in Northern Virginia.
This corporation is the logical
petitioner for the Alexandria Gas Co
for the purpose of eliminating COM
petition In the area in which IL
operates. It Is extremely undesirable
both In the interest of the residents
Of Alexandria and Of the Washington
company and its consumers that such
IN acquisition take place.
THE Hyattsville property, although
small, Is shown by the evidence before
this commission to be o justihabis
purchase at the price proposed. Finan-
cial doubt Is confined to the ALLEGATION
Of $500,000 In cash for the Alexandra
company's common stock and other
evidence Of Indebtedness, excluding q
30,G00 note now held by the Rosslyn
company. q subsidiary Of the WASH
mgton company" !.