Evening star., 1936-09-18
HEARING ON MOVE
To OBUY GASF|RMS
SET g
Washington Company Seeks
to Purchase Two Nearby
Concerns.
COMMISSION STAFF
TO COLLECT DATA
All Three Units Now Are Con.
trolled by Trust in Massa.
chusetts.

A public hearing will be held Sep
tember % by the Public Utilities
Commission for discussion of the pro-
poSal Of the Washington Gas Light
Co. to buy the Alexandria and Hyatts-
vile gas concerns for a price not to
exceed s1,375,000.
All three concerns now are con-
trolled by the Washington & Sub
urban Cos. Massachusetts, common
law trust. which represents Chase Ma
tional Bank and associated financial
interests. The Washington company.
as agent for the trust, recently moved
for public sale Of all the stock in the
Washington concern held by the
trust, amounting to "a per cent Of
the total.
The hearing will be held at 10 am.
In the commission offlces. Meanwhile,
the commission staff will undertake to
gather all pertinent data.
The Washington company filed
petition for the purchases late yester-
day after its representative had out
lined the proposals to the commission
during several hours Of private dis
cussions. The commission said it
would not act until after a hearing
was held.
The company then filed its petition,
already prepared, submitting argu-
ments that the proposed maximum
price was some $l75,000 less than the
estimated value of the two suburban
companies. plus the amounts of accu-
mulated interest and advances of
funds, totally aside from the value
Of the stock to be acquired.
The commission will inquire closely
into three points regarding the con-
solidation plan. First, whether 1t Is
desirable for the Washington company
to acquire the two suburban con-
Germs; second, If the proposed price
Is fair and reasonable, and third,
what will be the effect upon the
financial condition of the local COM
pany.
1t is proposed to buy all the 2,50o
shares of stock of the Alexandria
company and to assume notes and
other obligations amounting to $685.
800 and to buy the $500 shares of the
Hyattsville company and take over
from the parent company. the Massa-
chusetts trust. bonds amounting to
1921, 900 and notes and other obliga-
tions totaling $271,s 1928.
The costs Of the purchase would
be repaid through issuance of addi-
tional securities, the company told the
commission.
Dividends Not Paid.
The Alexandria company has paid
no dividends on its capital stock. The
Hyattsville company, the commission
was informed, has paid quarterly divi-
dends on its stock since April, 1898.
The quarterly rate in 1888 and 1884
was so cents and in 1886 it was Is
cents.
The Washington company told the
commission it wished to buy the two
suburban concerns because the terri
tories of the two were contiguous to
those now served by the Washington
company and its present subsidiaries,
that the Washington company must
look to suburban areas for its future
development in the gas business. It
said such expansion would insure
eventual maximum economies.
Acquisition of the Alexandria and
Hyattsville companies will result in
q fully integrated gas system serving
the metropolitan area of the District
under one local management, with
out foreign holding company owner
ship or control, and therefore will be
a step towards the accomplishment of
one of the purposes of the public
utilities act of 1885," the company
said in its petition.