Evening star., 1939-04-17
Gas Company
Asks Contro|o Of
Nearby Plants
Again Makes Move
For Utilities
Commission 0. K.

Gas Light Co., today told the Public
Utilities Commission that the local
gas light company wants to acquire
control of the Alexandria Gas Co.
and the Hyattsville Gas Co. to pre-
vent possible distintegration of serv-
ice in the Capital area.
He appeared before the commits
sion as the first witness in the gas
light companys third effort since
1886 to acquire the outlying property.
The proposed payment would be
some sl.25O,000 paid by 1925 shares
of Az per cent preferred stock in
the Washington company.
Mr.. Overs testified that executive
control of the two nearby companies
is by the officials of the Washing
ton company, most of whom hold
Identical positions in the Hyattsville
and Alexandria units. He told the
commission that the application was
for complete corporate control of the
two nearby companies.
The two companies are owned by
the Washington Suburban Cos. a
Massachusetts, common law trust
representing the Chase National
Bank and affiliated financial inter
ests. The trust company also owns
about "a per cent of the stock in
the Washington company.
The trust is subject to the Hold
ing Company Act of 1885, and Mr..
Overs told the commission that the
Suburban Cos. wish to dispose of
ownership in the Washington Gas
Light Co.
Unified Service Sought.
On the theory that the Suburban
Cos might also dispose of the
Hvattsville and Alexandria units to
some other concern. Mr. Overs tes-
titled that the Washington company
wants to acquire the two units to
complete unified service in the Capt.
tai area.
Taking up the Hyattsville COM
pany, Mr.. Overs said it had been
operating since 1906 and had been
acquired by the Washington Sub
urban Cos. at the same time the
Alexandria company was taken
over. The total original cost of the
tangible property in this case, he
said. was 1899 ,246.10.
Exhibits furnished the commission
showed that the book value as Of
December l, 1888, of the securities
involved-that is, for which the
Washington Gas Light Co. proposes
to pay $1,250,0 ,000-totals ST 1922 ,88O
The commission recessed the hear
ing for an hour at 1890 pm.
Representing the local company
were E. Barrett Prettyman and
Gloyd Await. For the first time,
the Washington Suburban Com
panies was also represented at the
hearing by F. B. Lund. jr.
Questioned About Payment.
Richmond Keech, vice chairman
of the commission, asked Mr.. Overs
if any other method of payment
had been considered other than the
preferred stock.
What l mean" said Mr.. Keech
''is this a condition precedent to
acquisition of the property? Or are
there some other possible terms oi
payment?"
Mr. Prettyman responded to the
question and said that no other
method of payment was pending.
However, he added, if the commits
sion had any other method in mind
the company would be glad to con-
slider it with a view to possibly
amending the application for acqui-
sition.
Mr.. Overs said that in connection
with the Hyattsville company, the
application proposed taking over
$500 shares of common stock; $231,-
600 in Hyattsville Gas & Electric
Co. first mortgage bonds at 61s per
cent, maturing in 1948 $27927 81 in
a promissory note at per cent dated
1881, and Indebtedness of $4,000
representing cash advances from the
Suburban companies
In connection with the Alexandria
unit, Mr.. Overs said the proposal
would take over $500 shares of capi-
tai stock $675.000 in promissory
note dated 1881, and $4,000 repre-
SSIlllllS oCFCldl 4lOISo
dated 1887 and 1888.
Taking up the details of the Alex
andria company first, Mr.. Overs
said the property had been acquired
In 1886 at cost of s75O.0O0. An in
ventorv made in 1886 he said,
showed the total original cost of
tangible property to be S708, 1888.
Original Property Cost.
However, his figures showed ap-
proximately half of this amount has
been added since the date of acqui-
sition. In other words, he explained,
the original property cost prior to
acquisition was slightly over 1854 900.
Mr.. Overs said that the city of
Alexandria has furnished very little
In the way of records from which
original costs of the plant could be
computed. He said that the esti-
mates were based on manufacturers
records and on the basis of original
costs of similar property or from an
engineers estimate. The estimates
of the original cost of distribution,
mains and other items, he said, were
based on the average cost of similar
materials in the Washington system
over period from 1848 to 1882.
The company's first offer of ST.
375000 for the suburban concerns
back in 1896 was rejected by the
Utilities Commission on the ground
that the price was too high and not
in the public interest. A second pro-
posal about year later called for
a payment of sl,275,OO0, but the
offer was withdrawn before any
action was taken by the commission.
According to unofficial reports, the
business of the two suburban COM
panies has improved over earlier
years, but only the Hyattsville COM
pany has been paying dividends.
Special Cathedral Service