Evening star., 1937-06-17
AUTHORITY GIVEN
GASL|CHT CO.FOR
FINANCE CHANGES
Stock Increase to Effect
Major Step Toward
LoCa! Control.
SET UP OF 100000
SHARES is APPROVED
S. E. c. Has Yet to Rule on peti.
ton of Common Law Trust
for Public Sale.

REORGANIZATION of the financia,
structure of the Washington Gas
Light Co. will be started soon with
the f1otation of 10000 shares of s45C
preferred stock and a three-fold in
crease in it's common stock by the
splitting of the outstanding 10000
shares into 100000.
The Public Utilities Commission late
yesterday approved a petition by the
company for these moves and at the
same time authorized the company tc
carry its capitalization to 100000
shares of common and preferred stock
The decision is the third major ster
in a program that may mean the end
of the foreign" control OF the Wash
ington Co. by Massa chusetts common
law trust known as the Washington
and Suburban Companies, which rep
resents the Chase National Bank and
associated bankers.
S. E. c. Authority Asked.
The trust last year announced its
Intention to sell to the public the
100000 Of the 10000 presently out
standing shares in the Washington
company. A proposal to that effect
has been filed with the Securities and
Exchange Commission, but action has
been deferred.
The first step was removal by the
trust Of an indenture in its agreement
with the Washington company, which
from increasing its stock issue, unless
the trust could take enough of the
shares to maintain its "a per cent
control.
When that was wiped out the bank
ers behind the trust called in and
destroyed more than S5,000,000 Of
bonds against which the trust shares
of interest were pledged. The story
is that the bankers are taking their
losses and later will dispose of their
common stock holdings.
Because the Washington company
has been financed to large degree by
bonds. experts have declared the need
for increasing the stock authorization,
and this is permitted under an act
adopted during the past session of
Congress.
May Buy Suburban Companies.
In addition TO controlling the
Washington Co., the trust owns the
Hyattsville and the Alexandria Gas
Cos. Pending before the District
Commission is proposal by the
Washington Co. to buy from its par
ent trust these two suburban con-
Germs, but this question was not in
volved in the commissions action yes
terday.
The present stock of the Washing
ton Co. has a par value of $40.
When the shares are exchanged. three
for one, the new issue will be without
par value.
OF the total of 100000 shares
authorized yesterday by the commits
sion, 100000 will be classified as
common stock, and the remaining
100000 as preferred. The latter will
be divided into $4,000 shares of $3.50
cumulative, convertible, preferred
stock and 10000 of SIS cumulative pre-
ferred. The impending issue of 10000
shares will be portion of the $4,000
authorization.
The company has said it hopes to
sell the stock at $95 per share, and
If the 10000 were disposed O at the
asked price. the stock transaction
would bring to the company some
s1,900,0oO. The money is to be used
to take up outstanding bank loans
incurred for capital expenditures and
the remainder applied to the acqui-
sition of new property, extensions and
betterments.
The commission added Nothing in
this order, or in the proceedings of
the commission, shall be taken or
understood as certification by this
commission as to the financial condi-
tion of the company or as to its as
sets or liabilities, or as to anything
other than as expressly stated in this
order"