Evening star., 1942-03-27
Gas Light Stock Issue
OF 1880 Shares
Authorized byP. U.C.
Honkin Dissents in
View Of Request for
Second Series

Authority for increasing the cap
ital stock Of the Washington Gas
Light Co. by 42,500 shares of $4.25
cumulative preferred stock was
granted yesterday by the Public
Utilities Commission reluctantly"
and with Commissioners Charles w.
Kutz and James H. Flanagan out
voting Chairman Gregory Hankin,
who dissented.
the amount authorized was less
than half of the 10000 shares re-
quested by the company and ap-
proved by rs per cent of the stock
holders. The commission reserved
consideration of the remaining Al
500 shares and also reserved full
jurisdiction over the actual issue
and sale of any portion of the A.
500 shares presently authorized.
The company had testified it had
short loans outstanding with
the banks amounting to $4,000, 900
and that 1t shortly would borrow
an additional $500O00, and had ex-
planned the stock issue was neces-
sary to cover these and other needs
involved in financing increased op-
erations and expansion.
Another Issue Sought.
Something of a furry was created
at the commission when the gas
concern, late Wednesday, filed
new application for permission to
issue 10000 shares of SIS cumulative
stock under authorization granted
in 1887 This caused Commission
Chairman Hankin to dissent from
the action on the S425 stock He
wanted to postpone consideration
of the petition on the s425 stock
until decision had been rendered
on the IS stock.
Commissioners Kutz and Flana-
gan noted that while the company
was seeking authority for 10000
issue of $4.25 stock it had not in
tended to offer for sale more than
$4,000 of such shares at this time"
Further. they agreed there was no
sound basis upon which to deter
mine that a mere authorization"
is in public interest as there ex-
lists mo suitable yardstick" by which
to measure the extent to which pub
lie interest is affected. They added
this was not so when the commits
sion is asked to approve a specific
financial proposal. They did find,
however. there was reason for AZ 500
shares of such stock. If issued in the
reasonably near future" though
doing so reluctantly" and with
reservation that actual approval Of
sale would depend on conditions
ct the time of the proposed issue
and sale"
Majority Action Protested.
Mr.. Hankin asserted in his dis
senting opinion, that 'just as I was
going to concur" in approval to in
crease the companys capitalization
by 42,500 shares of S4.25 stock, 1t
had requested issuance Of the SIS
stock and that this deprived us of
any basis for determining that this
increase in capitalization would be
in public interest" He protested
that the commission majority had
not stated any reason why 42,500
shares (of the $425 stock rather
than some other number were au-
thorized and no reasons why, the
authorization was in public interest.
He added, pomtedly, that "evi-
IDENTIFY" the company has no inten-
ton "at the present time" to issue
the S425 stock and that presuming
there was issuance of the IS stock
he could not find that increase in
the capitalization was in the public
interest. Somewhat on this point,
company spokesmen had argued
they needed and should be granted
more flexible" financial setup
for the concern.