Evening star., 1941-01-19
Washington Gas
Plans Increase
In Preferred
New Issue Would
Provide $4,000, 900
For Expansion

Officers of the Washington Gas
Light Co. announced yesterday that
the company proposes to increase
capitalization, issue approximately
10000 shares of new S425 preferred
stock and raise $4,000 OOO during
1941 to be used in the expansion of
facilities and service in the Capital
and nearby territory, due largely to
the very rapid growth in popula-
ton.
The proposals, as noted in yester-
days Star, were disclosed through
the filing of the company's appli-
cation requesting authority from the
Public Utilities Commission, proxy
statement with the Washington
Stock Exchange. and also with the
Securities and Exchange Commits
sion.
The application to the Public
Utilities Commission discloses that
the company has issued or sold all
OF the available $3.50 dividend pre-
ferred stock which was authorized
at a meeting of the stockholders
and with the consent of the Public
Utilities Commission in 1887. and
the application proposes that the
capitalization be increased again by
the authorization of an additional
10000 shares of preferred stock,
with S425 dividend rate.
Stock Nav Be Offered Soon.
Officials of the company an
nounced that the proposed action
was to provide alternative means
for financing the company, other
than by sales of bonds. 1t was stated
that if the authorization is granted
by the stockholders and found to
be in the public interest by the
Public Utilities Commission ap-
proximatelv 10000 shares of the
new stock might be offered for sale
in the near future. The balance Of
the proposed authorization would
be available for issue and sale from
time to time in future years as need
might occur.
When filing the proxy statement
with the Washington Stock FX-
change. as required by the regula-
tions Of the Securities and Exchange
Commission. the company asserted
that the need for additional capital
was related to the growth of WASH
ington and that the company must
be ready and able to care for the
gas service requirements of the grow
ing population of the city and the
surrounding area in Maryland and
Virginia.
1t was pointed out that in the
last II months, the number of meters
connected to the system had in
creased by $4,000, and that the
volume of the gas sales had in
creased approximately Is per cent,
and that with the present emphasis
on national defense. the company
must be in all respects prepared to
maintain the present high standard
Of gas service in the Nations Capital.
Stockholders Act March 10.
1t was stated that no arrange
A44NIINo lidNi LtCIl lllCut lOI lllt SAFE
OF any part of the 10000 shares of
stock for which authorization was
being requested of the stockholders.
Any such offering would necessarily
be made first to the common stock
holders Of the company. who have
a pre-emptive right to subscribe to
such new issues. No such offering
can be made until the authorization
now requested has been fully ap-
proved and after registration state
ment has been filed with the Secu-
rifles and Exchange Commission has
become effective.
The proxy statement indicated
that action on this matter would
be taken at the stockholders meet
ing. to be held on March 10.
President Marcy L. Sperry said
that notices to the stockholders
were mailed Yesterday. The appli-
cation was filed with the commits
sion by Vice President Robert C.
Overs.