Evening star., 1936-08-25
GAS CO. OFFERS
TO SELL CONTROL
T0D.C.|NVEST0RS
Proposes to Put on Market
Here 100000 Shares
of Common Stock.
INVESTMENT BANKERS
READY TO HANDLE DEAL
Plan Would Dissolve Washington
and Suburban Holding
Companies.

Return of control Of the Washing
ton Gas Light Co. to Washington in
vestors was forecast today with the
filing with the Securities & Exchange
Commission of a registration state
ment proposing to sell approximately
los, 900 shares of common stock Of
the gas company now held by tho
Washington & Suburban Companies,
a Massachusetts, trust. This repre-
sents about IS per cent Of the COM
mon stock.
The stock Is to be sold to a group
Of investment bankers and dealers
who will promptly reoffer it to in
dividual investors in Washington and
throughout the country.
Dissolution Is Proposed.
Dissolution of the Washington d
Suburban Companies, which now con-
trolls more than 80 per cent of the
common stock of the Washington
company, is contemplated in the
move for sale of the stock.
Acting Chairman Richmond B.
Keech of the District Public Utilities
Commission. said the financial move,
If consummated, would be highly ad-
vantageous if it meant return of ma
jority ownership Of the stock to Wash
ington people. and If 1t meant the
eud of the foreign control exercised
by the Massachusetts, common law
trust.
The move appears to be one which
would eliminate the Washington g.
Suburban Cos. from the tangled pic
ture of the ownership of the local
operating gas company. The wash
ington & Suburban Cos. is the Massa-
chusetts common-law trust. allegedly
set up to circumvent what District off,
cials have contended was the real in
tent of the La Toilette anti merger
law. This act was designed to pre-
vent foreign control Of Washington
utilities
Comes rs Climax.
The proposed new stock transaction
comes as q climax in the long his
tory of gas companies ownership. Fpr
years there has been agitation here
over the foreign control Of the
company.
The La Toilette anti-merger act
makes it illegal for foreign corpora
tions or companies to hold more than
20 per cent of the control, directly or
indirectly. in any Washington utility
Some years ago the Seaboard In
vestment Trust headed a group Of
nom Washington financial interests
which gained control Of the Wash
ington Gas Light Co. Successfully in
control were the Central Public Serv-
ice Corp. headed by A. E. Pierce of
Chicago. then the Westfield Trust and
finally the Washington & Suburban
Cos. This last-named trust represents
Chase National Bank and associated
financial interests. It owns 100000
Of the 10000 shares of common stock
in the Washington Gaslight Co. 1t
also has an interest in the Hyattsville
Gas Light Co. and the Alexandria
and the Richmond companies. but its
major interest Is that of the Wash
ington company.
Investigation in 1882.
Back In 1882 the District Public
Utilities Commission began an inves-
tigation of the then alleged foreign"
control Of the local gas industry. Will
liam A. Roberts, then special assistant
corporation counsel, assigned to public
utility matters. was designated to con-
duct the inquiry. He produced mass
Of data. As a result. the commission
on May 7, 1892. issued an order di-
recting the foreign interests to divest
themselves of control OF the Washing
ton company.
The case went to District Supreme
Court. The commission issued an
amended order December 23. 1882.
The wind-up was that the court kept
the case open. While allowing the
Washington and suburban companies
to maintain Its interests, the court
required that any appreciable change
in stock ownership must be promptly
reported to District Supreme Court, as
well as to the Public Utilities Com
mission.
This was in the form Of q consent
decree.