Evening star., 1940-02-13
Associated Gas Bond
Committee Asks
Holders, Support
Authority Is Solicited
To Safeguard Interest
In Reorganization
BY EDWARD c. STONE.

obligations of the Associated Gas
& Electric Co., announced today
that the committee is soliciting au-
thority from holders of these secur-
ities to safeguard their interests IN
connection with the present re-
organization proceedings.
Mr.. Colladay and the other men,
bers of the committee were mem
bers of the Protective Committee
which was organized in 1884, when
creditors filed a petition for re-
organization of the company. They
have followed the affairs Of the
company closely since that time.
Now that reorganization of the
company is actually in progress, the
members of the committee have
again become aggressive and have
prepared an extended statement on
the present situation for distribution
to the holders of bonds and notes.
The members of the General Pro-
tective Committee are Irwin Med.
Garfield, Boston attorney, chair
man; Mr.. Colladay, who is general
counsel and trust officer of the
Second National Bank in this city;
Louis K. Comstock, an electrical
engineer. and Moses H. Grossman.
senior member of New York law
firm.
The secretary of the committee is
David S. Elkins. New York attorney,
located at rs William street. The
counsel to the Protective Commit
tee is Jack Lewis Kraus, I'd, another
New York attorney.
Members of the committee have
attended every recent hearing IN
the pending proceedings for reorgan-
ization of the company, including
the hearing with reference to
the selection of trustees for the
company. Only the other day the
Securities and Exchange Commis-
sion refused to name the trustees to
take over the affairs of the huge
corporation.
Nine Issues in List.
There are a great many different
classes of Associated Gas securities
outstanding. Mr.. Colladay said to-
day, however, that the General Pro-
tective Committee is limiting its
representation to that of holders
of nine issues only. These issues all
have fixed interest obligations and
total about $178,000,000.
The nine issues include Associated
Gas & Electric Co. 4 per cent
debentures, due 1888; 5la per cent
convertible debentures, due 1877; S
per cent consolidated refunding
debenture bonds, series due 1868;
AZ per cent consolidated refunding
debenture bonds, series due 1858; S
per cent convertible debentures, due
1850; AZ per cent convertible
debentures, due 1919; ~ per cent
convertible debentures, due 1o48;
5h per cent convertible investment
certificates, per cent convertible
debenture bonds, due 1865.
Priority of these bonds over other
issues will be one of the issues in
volved in the present proceedings
The members of the committee will
act for individual holders and two
of them represent estates which
have blocks of the bonds, Mr.. Cola
day stated.
The size of the Associated Gas
& Electric Co. and its subsidiary,
Associated Gas & Electric Corp,
and the amount of securities in
volved make the present reorgani-
cation move one of the most far.
reaching in financial circles in re-
cent years. The various securities
are held all over the United States
and in foreign countries. The sys-
TENS present outstanding issues
total more than $750,000,0OO.
Bankers at Trust Conference.
The following Washington bank
ers are attending the 21st Midwinter
Trust Conference, which opened at
the Waldorf Astoria Hotel in New
York today:
T. Stanley Holland, American Sc
curity & Trust Co.; Erskine Gordon,
Hamilton National; William v. Sim
mons, Liberty National; Floyd E.
Davis, Lincoln National; j. Frank
White and Ralph G. Wilson, Ma
tional Bank of Washington; Stanley
D. Willis, National Metropolitan;
Bruce Baird, William B. Willard
and Herman G. Lauten, National
Savings & Trust; Robert v. Fleming
and Sidney F. Taliaferro Riggs Ma
tional; John A. Reilly, E. F. Cola
day and William B. Wolf, Second
National; Willard G. McGraw and
j. Wesley Clampitt, jr., Union Trust
Co., and William H. Baden, WASH
ington Loan & Trust Co.
L. L. Brown, Jr., Promoted.
At a recent meeting of the direc-
tors of the Terminix Co. of Mary
land and Washington, Lou L..
Brown, jr, was elected secretary
and treasurer of the corporation,
with which he has been connected
since 1884. Prior to coming to Wash
ington he was in the company's
Philadelphia Office. He attended
the DreXel Institute of Technology
and other engineering schools, is a
member of the Lions Club, Junior
Board Of Commerce and is affiliated
with the Central Business Associa-
ton.
Heard in Financial District.
Eliot H. Thomson of the Wash
hgton Loan g. Trust Co. returned
today from the midwinter meeting
of the Advisory Council of the FL
nancial Advertisers Association in
New York
For the week ending February 7
holdings of United States Govern
ment bonds declined $4,000 900 at
the Richmond Reserve Bank.
Since January l there has been
an increase of 50 per cent in air
travel between Washington, Cleve-
land and Chicago, United Air Lines
reported today.
E. Percival Wilson, secretary of
the National Savings g. Trust Co.,
leaves here tomorrow for vacation
in Florida.