Evening star., 1939-08-14
Cos Company Ownership


justment of consumer rates of the
Washington Gas Light Company,
which will bring about small savings
per month to many individual con-
sumers but relatively large reduc-
tion in the aggregate, the Public
Utilities Commission is receiving re-
ports suggesting that foreign" con-
troll of the operating concern has
been ended.
The two subjects were not directly
involved at the hearings in the past
week on allotment of a portion of
the company's excess" earnings
under the sliding scale plan to the
consumers, but In the final analysis
there must be some connection. The
Washington company recently was
given permission by the commission
to buy the assets and obligations of
the Hyattsville and the Alexandria
gas companies from the Massachu-
setts trust which for some years has
controlled the destinies of all three
operating plants and it will, there
fore, be interesting to note de-
velopments in the future as to what
costs the two suburban plants may
place on the Washington company,
thereby affecting the profits of the
Washington company and conse-
quently the rates of Washington con-
Sumers, or what benefits may accrue
to the Washington company to the
advantage of both Washington and
suburban consumers.
All such factors were considered by
the commission when it finally
agreed recently to the issuance of
$4,000 shares of Washington COM
pany common stock in payment to
the trust for the two suburban con-
Germs, but it found no logical reason
to continue to oppose integration of
the three plants, once the price and
conditions had been brought down to
reasonable proportions. The Wash
ington company as the agent for the
holding company, or trust, had been
urging the merger insistently since
1885, and it is to the credit of the
Utilities Commission that approval
was withheld until the transaction
appeared to be in the interest of the
public as well as the financial inter-
eStS which had assumed control
through a long series of previous
market operations. The price was
greatly shortened, the conditions
were dictated by the commission and,
perhaps, in the end control over the
Washington company and its sub
salaries may be found to be vested
in local officers, free of any domina-
ton by foreign" financial groups.
Such a development should enhance
the prestige and public support of the
Washington company
Fortunately, the consent decree
given some years ago by the District
Court, in legalizing the control by
the Massachusetts, common law trust,
prescribed that both the commission
and the court must be notified of
any transaction in stock of the
Washington company. These reports
ultimately should show who has
fallen heir to control of the Wash
ington company.
Currently, it is, reported that more
than seventy-flve per cent OF the
stock held by the trust has been sold
to the public in many cities through
out the country. Washington in
vestors are said to have purchased
some $4,000 900 of the total Of more
than $4,000 900 of stock reported sold
so far.
The new consumer rate reduction,
amounting to some $4,000, which is
divided among various classes of con-
sumers, of course, is welcomed, since
it gives some benefits to many con-
sumers and also bespeaks the con-
tinued success and prosperity of the
Washington company.