Evening star., 1939-08-02
Washington Gas Co.
Control Involved
In Big Stock Sale
Price Announcement
Means Yield Will
Be Above 5 Per Cent
BY EDWARD c. STONE.


shares of Washington Gas Light Co.
no-par common stock will be Of
fered publicly later this week at
$3.50 share was received with un-
usual interest in the financial dis
trict and by the large number OF
present holders of Washington Gas
issues. The price was announced by
First Boston Corp. and Glore, For
gan e. Co., the underwriters in
charge of bringing out the stock. At
that figure, the yield will be just
above 5 per cent.
The sale of this large amount OF
stock is considered of far more than
ordinary Importance to Washington
For years the Washington Gas Light
Co. has been controlled by the Chase
National Bank, New York, and four
other banks. including a large Chi
cago financial institution. The
coming sale means that these big
banks are about to dispose of their
holdings, at the same time giving up
their control of the company.
Distribution of the stock to in
dividuals all over the United States
will make the Washington Gas
Light Co. proxy owned" The next
annual meeting and election of Of
ficerS will be controlled by proxies
and not by dictation from any banks
outside of Washington, brokers point
out At the present time the con-
trolling interests hold IS per cent of
the outstanding common stock and
the public IS per cent of the COM
mon.
Control May Come Home.
The sale to the public of the IS
per cent, with the exception of the
$4,000 shares involved in the
purchase of the Alexandria Gas Co.
and the Washington Suburban Gas
Co.. will completely change the
present situation. The present
publicly owned stock is widely held
in Washington and good deal of
the new stock is expected to be taken
by investors in the Capital. More is
likely to be picked up here from time
to time.
That should mean that Washing
ton people will be more interested in
the management of the gas COM
pany than any group of stockholders
outside the city If that proves to be
the case, control of the company will
eventually return to the Capital
after many years of so-called "ab-
sentee management" Large local
ownership and voice in the
management will be pleasing to the
District Commissioners. as the Public
Utilities Commission never intended
that control of the company should
leave the Capital
The registration statement filed
with the Securities and Exchange
Commission stated that the stock
would be listed on the Washington
Stock Exchange and that application
will be made to list it on the New
York Stock Exchange. The transfer
agent for the common stock is the
National Savings & Trust Co and
the registrar the American Security
& Trust Co.
Company Founded in 1S48.
The registration statement adds
that the company was incorporated
by act of Congress, approved July 8.
1848. At various time since that date,
it has acquired interest in other
concerns and for purposes of corpo-
rate simplif1cation has merged sew
eral former subsidiaries. The popu-
lation served by the gas company is
estimated at 100000.
The compan" has paid dividends
on the common stock at various
rates in each year since 1866. From
November /, 1917, to May /, 1887.
dividends at the rate Of $3.50 per
share per annum we're paid on the
outstanding 100000 shares of $40
par value capital stock: from August
/, 1887, to November l, 1888. divl-
dends were paid at the rate of S120
per share on the outstanding 100000
outstanding shares of common stock
without par value. On February l,
May l and August l of this year,
dividends of 37l2 cents per share
were paid on the common, or at the
rate of Sl50 year.
The registration statement goes
into present earnings in detail. In
this connection, the report filed yes
terday with the Public Utilities
Commission is of special interest,
showing a net income in the first
half of 1889 of S909362. against
S7290 080 in the first half of 1888, or
gain this year of S180,282.
Bank Directors Time Extended.
The Board of Governors of the
Federal Reserve system announced
yesterday that it had extended until
February l. 1910, its permission for
directors of Federal Reserve men,
bers' banks to continue as directors
of not more than one other bank
This action relates to provision of
the Clayton Act prohibiting inter
locking bank directorates.
A law postponing the effective
date of this provision until 1943 has
been voted by Congress but has not
yet been signed by President Roose-
welt. The previous extension of the
time limit by the Federal Reserve
Board expired on July 81.
Heard in Financial District.
George E. Fleming, vice president
and assistant trust officer of the
Union Trust Co., will leave Wash
ington the last of the month for
California. He and Mrs Fleming
will meet relatives from Manila at
Los Angeles and take a months
motor tour along the West Coast and
include several national parks
c. D. Ratcliffe, vice president of
the Munsey Trust Co., returned re-
Gently from vacation passed at
Virginia Beach.
Mrs. Lillian M Suit has assumed
her duties as branch auditor in the
Office of the Acacia Mutual Life In
surance Co., the appointment having
just been made by President William
Montgomery. She succeeds the late
Vivian Shepperson and is particu-