Evening star., 1938-08-22
GAS LIGHT BOND
PLANS AWAITED
Dealers Hope Company Will
Find Public Offering Is
Best Method.
By DONALD b. HADLEY.

By DONALD b. HADLEY.
With the Washington Gas Light Co.
again considering the possibility OF
refunding its SS,500,000 issue of 5 per
cent bonds due in 1858. it will be OF
wide interest here whether the COM
pany decides on public offering or
a private sale to large institutional
buyers.
The company has set no time for
the refunding as yet 1t was pointed |
out that some months ago, the COM
pany prepared for such step and
even filed a registration statement with
the S. E. c., but an unfavCrable turn |
in the investment market caused post
ponement. With the market again
favorable, the matter is being given |
fresh consideration.
Washington investment houses are |
hoping that the company will find |
1t advantageous to offer the refundmg !
issue to the public, as another insti-
tutional private sale would further
curtail their market. In such an event, |
many investors here also would have
to find other securities of similar quail
ity to replace the present IS of the
company in their portfolios.
Real Inroads Made.
Private placements have made real
inroads into the Washington market
in the last two years. Issues sold on
this basis include the S3,000,000 Al
per cent issue sold by the Gas Light
tn "a of 70 Tn
Co. in 1895; the S5,000,000 81 per cent
issue of Potomac Electric Power, which
was sold to large insurance companies,
and the Woodward q Lothrop 81 ,500.-
600 per cent first mortgage issue,
which was sold early this year to the
Metropolitan Life.
From short-term standpoint, the
private sale has the advantage of elm
mating heavy costs and liabilities in
connection with registration under the
S. E. c. From longer-term stand
point. it narrows the local market by
removing large blocks of securities to
New York vaults. Times change" one
dealer pointed out. and perhaps
few years from now, the large institu-
tions may not be so eager for these
securities and the companies may
have to turn again to the local mar
ket. They have a decided stake in
its maintenance"
Douglas Attitude Clear.
Chairman william O. Douglas of
the Securities Exchange Commission
recently froWned on the placement of
securities by private sale and ordered
an investigation of such transactions.
What influence, if any, this may have
on the District Public Utilities Com
mission in passing upon utility financ-
ing here, remains a question.
Douglas said these private place.
mentS' of whole issues with insur-
ance concerns have reached a high
volume in recent months and result
in giving insurance companies pre-
ferred status over other investors"
The S. E. c. chairman pointed out
that private placements with insurance
concerns are not public offerings" and
so do not pass through the usual regis
trdtion channels of the commission
Il do not know the exact figures but
there is a very large and growing VOL
ume of placements of this character"
he said. "A corporation will go to
an insurance company and say: We
have an issue for so much; will you
take it?'"
"Of course the investment bankers
have complained because it pinches
their toes and sluices off a large
amount of capital from the regular in
pestment market"
H. L. Rust Is Paid Tribute.
The financial district here was deep
lv shocked this morning by the death
Of H. L. Rust. ST. dean of Washington
real estate leaders and founder of
the firm bearing his name. From all
quarters came an impressive tribute to
his high qualities and achievements.
In anything of a civic nature he
could always be counted upon to be
present at important times said
leading banker He was never
man to take his responsibilities
lightly"
"A fine gentleman, the salt of the
earth" said another.
man 1 have ever known" said a
prominent broker. The business he
has built over the last half-century
has reflected his outstanding quality
of strlctest integrity to remarkable
degree. He never took advantage of
any expedient that he did not first
consider whether it was the rigidly
honorable thing to do. His was stern
and uncompromising attitude on the
question of ehtics. Sometimes he ruled
against himself and his business He
also had fine modesty about his
many philanthropies. He kept them
hidden from public view as much as
possible"
Agency Holds Meeting.
The Washington agency of the Mu-
tual Life Insurance Co. of New York
held its midyear meeting at the United
States Chamber of Commerce Satur-
day. Paul H. Primm. past president
of the District Life Underwriters As
soclation and president of the Middle
Atlantic Regional Association of Life
Underwriters, presided at the meeting
Mr.. Primm has been with the agency
nearly Is years, tthe longest contin-
uous service of any one on the staff
J. A. Kamerow. agent, spoke on The
Evolution of Life Underwriting" Capt.
A. Mop. Handy, another agent, spoke
on term insurance: Paul F. Grover,
first vice president of the District Bar
Association, gave a very interesting
address on My Experience With Wills,
Trusts and Insurance. Mr.. Primm
gave the final address on the value OF
field club membership.
Financial District Notes.
Edward L. Hillyar vice president
of the Union Trust Co.. is taking a
motor trip through New England and
Nova Scotia. He expects to return
after Labor Day
Robert F. Cahill, associate manager
Of Laidlaw g. Co., is spending two