Evening star., 1942-03-13
Gas Light Stock
Ruling Deferred
To Next Week
Honkin and Prettymon
Clash on Charge
Investors 'MisIed'

Decision by the Public Utilities
Commission on the pending petition
Of the Washington Gas Light Co.
for authority to increase its capi-
talization by the issuance Of 10000
shares of additional preferred stock
has been delayed until next week,
according to Commission Chairman
Gregory Hankin.
This announcement followed an
extraordinary session of the COM
mission yesterday noon, called to
determine why Mr.. Hankin's charge
that purchasers Of the company's
1886 preferred stock issue had been
"misled" had not appeared in the
transcript of Tuesdays public hear
ing.
Company counsel again denied
Mr.. Hankin's declaration, which the
commission chairman repeated yes
terday, with some notifications.
but still there was no meeting of
minds between Mr.. Hankin and E.
Barrett Prettyman. company coun-
sci, on the correction" asked by
the, latter Of Mr.. Hankin's declara-
ton.
Explains Use Of Word.
In response to repeated requests
by Mr. Prettyman, Chairman
Hankin finally said:
II will say this-that I did not use
the world misled' or the word mis-
leading in sense imposing any liza
bility on the officers or directors of
the Washington Gas Light Co., or
upon the company itself"
Mr.. Prettyman had insisted that
the company was sound and eco
nomicany operated and that it in
no sense misled the stock-buying
public in the sale of the 1896 pre-
ferred stock issue, that the terms of
the convertible preferred stock were
made known and that the investors
had had available current market
reports on the market value of COM
mon stock.
AS Mr.. Prettyman concluded his
explanation of the financial issue.
Mr.. Hankin modified his earlier
statements by saying the company
counsel's statement would have been
complete If he had ended with a
remark Of land the devil take the
Probe Missing Statements.
Yesterdays session was convened
after Mr.. Prettyman had discovered
that Mr.. Hankin's statement about
the public being "misled" did not ap-
pear in the offlcial transcript of
the Tuesday hearing. Members of
the P. U. C. staff, including Mr..
Hankin, the Official stenographer
and newspaper reporters, were called
to the stand yesterday as the COM
mission investigated the mystery
Of the omission of what were the
sharpest words said at the Tuesday
hearing.
After two hours of investigation
and testimony, it was developed that
no one had asked or directed the
official stenographer to leave any,
thing out of the official record and
that Mr.. Hankin's charge was lost
during fast and heated debate.
AS the commission heard the COM
mercial stenographer read and re-
read from his stenographic notes,
the commission was convinced there
were many" misinterpretations or
omissions in the Transcribed rec
ord.
The financial history was that the
1896 issue of preferred stock was to
be convertible into common stock at
the election Of the stockholder, on
the basis of one share of preferred
stock for three of common. This
stock has not been converted, but
Mr.. Prettyman stated and restated
that this would be done anytime the
preferred stockholder asked that 1t
be done, and he reminded the COM
mission that neither the company
nor the commission has any control
over the market price of the COM
mon stock.
Prettyman Challenges View.
Mr. Hankin explained that he
felt the buying public had been
"misled" because, he said, it had
not been told that if an investor
bought a s100 share of preferred
stock and converted it into common
shares "he would be converting
something worth 500 into some
thing worth $780,"
Mr.. Prettyman challenged the
commission chairman on this point
on the ground the public had avail
able the market quotations on COM
mon stock when the stock was
f1oated. But Mr. Hankin insisted
there should have been some addi-
tional statement from the company
so that the public would not be
buying a pig in a poke"
During the long discussion be-
tween Mr.. Prettyman and Mr..
Hankin over the misleading"
declaration, the commission chair
man said that he and Mr.. Pretty
man were agreed on the facts" but
were not in agreement on the Con
clusions" to be drawn from the
facts.