Evening star., 1938-12-17
Denial Of W. R. &E,
Exemption Petition
Stirs Interest
Details of S. (. G. RuIinq
Receive Attention of
Investors Here
BY EDWARD c. STONE.

Details from the ruling of the Sc
eurtties and Exchange Commission
denying application of the Washing
ton Railway & Electric Co. for ex-
emption from the provisions of the
Public Utility Holding Company Act
of 1885 reveal many facts of wide
interest to all stock and bondhold-
ers of this and the auxiliary
companies.
ground that the subsidiary, the Po-
tomac Electric Power Co., carries
on substantial business outside the
District of Columbia. To gain ex-
emption from the Holding Company
Act, corporation must carry on its
business substantially in a single
State"
In reviewing the case, the Securi-
ties and Exchange Commission
states that the Washington Railway
e. Electric Co. is a District of Co.
lumbia corporation, approximately
95 per cent of the common stock and
approximately IS per cent of the
preferred stock of which is held by
the North American Co.
The Washington Railway e. Elec-
trio Co. owns all the common voting
stock of the Potomac Electric Power
Co., all of the stock of the WASH
ington & Rockville Railway Co. of
Montgomery Co., so per cent of the
capital stock of the Capital Transit
Co. and IS per cent of the capital
stock of the Great Falls Power Co.
The Rockville company in turn owns
the Braddock Light e. Power Co.
The ruling hinged on the require
ment that the applicant holding
company and each subsidiary be pre-
dominantly intrastate in character
and carry on their business substan-
TALLY in single State.
Eight MARYLAND Stations.
The hearing brought out the fact
that the Potomac Electric Power
Co. generates power in the District
of Columbia and distributes it in
the District and in the State of
Maryland, % distributing stations
being in Washington and 8 in
Maryland.
The commission cited the COM
panys last annual report which
showed 1885, ,544 customers served in
washington and 28,605 in MARYLAND,
Annual kilowatt hour sales of cleo
trlclty last year totaled 48,553 900
In Washington and 61,440,OOO in
Maryland. Annual operating rev.
enues last year amounted to Sl2.-
994,265 in the District and S1.627, ,537
In Maryland, the commissions sum-
mary stated.
The report notes that the Potomac
Electric Power Co. furnished the
entire requirements of the Braddock
company. The Potomac Power Co.
also has an extensive arrangement
Tor interchange of energy with the
Consolidated Gas. Electric Light &
Power Co. of Baltimore.
Case of Long Standing.
The commission deduced from the
facts the decision that Potomac
Power does not carry on its busi-
ness substantially in single State"
The amount of capital sand effort
devoted to and revenue produced
by the business in Maryland is
clearly substantial" the commits
slons findings concluded
The ruling ends a case of long
standing, the Washington Rail-
way d Electric Co. having filed its
first application for exemption on
November 30, 1885. An amended
application was filed on July l, 1888.
and the commissions hearing took
place on October 10.
The application was one of a
great many filed by holding compa-
nles all over the country. Registra-
ton with the Securities and Ex-
change Commission calls for extern
sive reports which place considerable
extra expense on the corporations.
Bank Declares Dividend.
A 2 per cent dividend payable to
stockholders of record December Is
will be paid December 81 by the
Citizens Bank of Takoma Park,
Md, having just been declared by
the Board of Directors.
The Citizens Bank was organized
IN 1928 and since moving into its
present quarters in July, 1888, the
growth has been rapid, according
to officials of the bank On Decem-
ber l the deposits were s1,026, 1887,
with the resources amounting to
S1,131 ,580.31; capital stock, $4,000,
and a surplus of $4,000 and undi-
vided profits of $1O,19345. A COM
parative statement issued by the
"a bank shows the following deposits:
June 80, 1884, 1901 900: 1885. $459.-
900; 1886, $744 900: 1887, 1865 900 and
June 80, 1888, s1,O01 900.
Officers of the band include Eben
= Nd. Whitcomb, president; L. V.
. Lampson, vice president; H. J. Carr,
vice president and cashier and Rob-
. ert M. Lyon, assistant cashier,
Todays Trading on Exchange.
Trading on the Washington Stock
Exchange closed the week with
Washington Gas Light preferred
stock at 104a, same as yesterdays
close.
Mergenthaler Linotype appeared
on the board today with three 10
snare lots changing hands at %. The
market closed with % bid and %
asked
Capital Transit stock came out
again today with Is shares selling
at 8. the price which has prevailed
during the present week.
Bond trading was confined to Cap
ital Traction SIS, a $1,000 transfer be-
Ing registered at IS, unchanged.
The largest share transaction in
stock during the week was 100
share sale of People Drug Stores
common at 2612.