Evening star., 1941-12-30
Petition Questioned
In Gas Co. Request
For New Stock Issue
Utilities Group Asks
If Former Application
Can Be Changed

A legal question over finances OF
the Washington Gas Light Co. was
raised today at the outset Of hear
ing before the Public Utilities Com
mission on the petition of the COM
pany for authority to issue, ulti-
mateN. as much as 10000 shares OF
S425 preferred stock.
Washington phenomenal growth
due to war and defense conditions
was cited by company spokesmen a:
a particular need for the authority
so as to permit issuance OF a por.
ton Of the 10000 shares las soor
as possible" to take care Of imme-
diate needs.
The amount OF new capital needed
at this time was placed at between
50 900 900 and $4,000, 900. Som OBJ
servers say the company hopes to
obtain as much as $4,000, 900 from
the sale Of 10000 shares, If and when
all of it has been issued.
Hankin Raises Question.
As the hearing opened. however
Gergory Hankin, commission chair
man. asked why the company was
seeking authority to issue the 10000
shares when the commission already
(several years ago. had given the
company authority to issue 10000
shares of S. preferred stock.
E. Barrett Prettyman. company
q local
ton as to whether the commission
authorization for SIS preferred stock,
10000 shares, could be changed to a
s4.25 preferred stock. Pressed by
Chairman Hankin, the gas company
Spokesman said he believed the pub
lie utilities statute did not give the
commission that authority.
Mr.. Hankin said:
Then you mean we must approve
or deny this request for authority
to issue 10000 shares, without
change?"
Mr.. Prettyman agreed that was
correct. but insisted this did not
handicap the commission. since it
still would have specific authority to
approve or disapprove. in later steps,
specific amounts of stock actually to
be sold, after the general authority
was granted.
The question was passed over for
the time, after Commission Counsel
Lloyd B. Harrison said he believed
the commission could give authority
for more or less stock than was
sought, since it could base its action
on what was "in the public in
terest."
Tells Need for Expansion.
Robert C. Overs, vice president
and treasurer of the company, said
the population of the Metropolitan
Area had increased 46 per cent in the
past 10 years and that the number
of active gas meters had increased
SIS per cent. He said the company
had used more than s16,0OO,000 OF
new capital in its investment in the
10 years ended December 81, 1910
and that more than s3,000,0Oo had
been invested this year. He stressed
that more new capital would be
needed to supply gas service that viii
be demanded of the company in the
future, since Washington still is
growing by reason of defense activi-
ties.
At present, he said. there is an i'm
mediate need for about 5000 900 te
refund bank loans which were incur.
red to cover the cost of extensions ir
the past year and that part Of the
funds from the preferred stock ISSUE
would be used for this purpose. Mr.
Overs also said that since the disso.
luton of the Washington & Sub.
urban Co.'S, the Massachusetts, com.
mon law trust which once controlled
the company, the largest amount Of
stock registered in any one name was
1000 shares of common stock, which
was less than 2 per cent Of the tota
voting power.