Evening star., 1939-04-19
Natural Gas
Chance Here
Held Slim
Not Enough Supply
At Right Price,
Official Says
BY DON S. WARREN.

- BY DON S. WARREN.
Possibilities of substitution of
natural gas for mixed gas in service
In Washington and the Hyattsville
Ind Alexandria areas were discount
ed today by spokesman for the
Washington Gas Light Co., as the
Public Utilities Comnission contin-
;, ued hearings on the proposed merger
Of companies in the three places.
E. j. Boothby, vice president and
general manager of the Washington
company, who holds Office also for
the two suburban concerns. declared
fatty there is no probability that
natural gas will be introduced for
comElete service for the companies
"for an indefinite period"
Asked by E. Barrett Prettyman,
counsel Tor the Washington COM
pany, for his reasons, the witness
said:
"At the present time there is not
4 sufficient supply at price that
would justify the change"
Exploring Possibilities.
The commission, in its call for
the hearing on the proposed pur-
chase of the two suburban concerns
&, by the Washington company for a
price estimated at $1,250.000, an
} nounced it would explore the posi-
bilities of greater use of natural gas.
The natural fuel, obtained by pipe
line from West Virginia, is now
used in a 30 per cent mixture in
the manufactured gas by the Wash
ington company and the Hyattsville
concern.
Commission Vice Chairman Rich
mond B. Keech inquired closely into
Mr.. Boothby's views and brought
out that in Detroit natural gas had
been adopted with the result that,
while the manufacturing plants had
been continued for standby" rea-
sons. there had been some decrease
in consumer rates to those who
adopted mere extensive use of gas.
Under his examination. Mr..
Boothby agreed first that the
change had not been detrimental
either to the Detroit company or
to its consumers and, later, that it
had resulted in benefits for some of
the consumers. During this eX-
Change, Mr.. Boothby declared that
the particular benefit had been to
the pipe line companies, but Mr..
Keech chided him with the state
ment that his answer was not re-
sponsive.
Pepco Experience Cited.
3 In referring to the experience of
the Potomac Electric Power Co., Mr..
Keech brought out successive con-
sumer-rate reductions had been fol-
lowed by increase in its business
MIR. Boothby replied that consumer
rates were an element but that he
would not say it was the dominant
element in the progressive increase
In P. E. P. Co.'S business.
The reason why the Washington
company insists on paying its parent
trust s1.250,0O0 in preferred stock,
rather than in common stock, for
the proposed acquisition of the two
suburban concerns was before the
commission as it continued hearings
The record of the first two days of
the hearing contains repeated ques-
tions from the commission and its
counsel as to why it would not be
simpler or wiser for the company
to make such change in the merger
plan.
One of the pertinent responses,
given by Robert c. Overs, vice presi-
dent and treasurer of the Washing
ton company, was that he did not
believe the ownership trust would
want to take another batch" of COM
mon stock while it was planning to
sell to the public its present "a per
cent ownership of the existing COM
mon shares. A plan to this effect
has been filed with the Securities
and Exchange Commission under
the Holding Company Act of 1885.
Sees Preferred More Marketable.
Mr.. Overs argued that it was be-
1ieved an issue of 1925 shares of
preferred stock would be more
marketable.
p The commission was told late yes
terday by Mr.. Boothby that by one
method of calculation it had been
figured that the value" of the two
suburban concerns could be placed
at $1,819, ,804, or some $500 900 more
than the price proposed in the pend
Ing plan. This was based on es-
Inmates of the cost of reproduction
OF the existing plants. new, less
calculations for depreciation.
= Other exhibits entered in the case
showed that the Alexandria COM
pany is indebted to the extent of
$687, 900 to the Washington and sub
urban companies, the Massachusetts
common-law trust which controls
the two suburban concerns as we'll
as the Washington Co. Commission
members and their counsel, Lloyd
B. Harrison, brought out that the
Alexandria concern has never paid
interest on its debt to the trust and
that the parent had conceled, in
1887, $265 900 in accrued interest