Evening star., 1943-08-08
D. {. Utility Chief
Praises Plan for
North American
By EDWARD C. STONE.

Alfred G. Neal, director of the
North American Co. as we'll as
president of the Washington Rail-
way & Electric Co., and the Potomac
Electric Power Co.. and a Capital
Transit director, yesterday lauded
North Americans plan submitted to
the Securities and Exchange Com
mission for liquidating the billion
dollar system under the death
sentence" of Public Utility Holding
Company Act.
The dissolution plan was drawn
up with great care and study and
is intended to give North American
investors the greatest protection pos
sible, while complying with the SEC
Interpretation of the holding COM
pany act, he declared. At the same
time Mr. Neal said the three Wash
ington subsidiaries would not be
affected by the proposals made to
the SEC.
Potomac Electric Power and Cap
ital Transit will continue to operate
without change, as will the WASH
lngton Railway & Electric Co., re-
gardless OF the acceptance or rejec-
ton by the SEC of North Ameri-
cans plan for eventual liquidation.
Mr.. Neal made it clear that the
action taken in New York has moth
Ing to do with the earnings of the
Washington utility concerns, which
are now at high levels, with present
6jVj6pndc
Stocks Exchange Leaders.
Securities of these companies are
among the leading issues on the
Washington Stock Exchange, Rail-
way Common is the highest priced
stock on the board with a current
bid of $40 a share.
Officers of the North American
Co. estimate it will take 10 years
to carry out the dissolution pro-
posals! At the end of that time the
North American Co. will no longer
exist and the period of control of
Washington utilities by the holding
company will have ceased. At pres
ent, North American owns "a per
cent of Washington Railway g. Elec-
trio common stock, enough to re-
tain control although the amount
has been sharply reduced in recent
years.
North Americans plan has for its
chief aim the protection of North
American security holders. A bank
loan will retire outstanding deben-
lures. AS outlined, the company
proposes to divest itself of the ma
Jor part of its utility investment
by retirement of senior securities
and eventual distribution of its prin-
cipal investments among holders of
the common stock, with mini
mum of sales or other forms of
liquidation"
Four Companies Proposed.
There will be four regional hold
ing companies, one of which will
hold common stock of the WASH
ington Railway & Electric Co. and
some Pacific Gas & Electric COM
mon. A fifth company will be known
as the "liquidating company"
Each of the four regional COM
panies will be independent of the
others and own single integrated
public utility system" The plan
calls for the distribution of divi-
dends to stockholders until disso-
luton.
If permitted, the company reserves
the right to present its appealed
case before the Supreme Court.
Peoples Drug Dividend Voted
Directors of Peoples Drug Stores,
Inc, have declared dividend of
IS cents per share on the outstanding
stock, 1t was announced yesterday
at the head Office here. The divi-
dend; will be paid on October l to
stockholders Of record September 8.
The company has already paid IS
cents per share so far this year.
Chain Sales Up Sharply.
Sales reports for June and the half
year of chain stores having Wash
ineton outlets disclose substantial
gains over 1912. McCrory Stores
sales in June were up IA per cent:
5. S. KreSge, 8; w. T.. Grant. is.
Among other stores reporting, J. J.
NeWberry sales were up 25 per cent.
Municipal Financing Rises.
State and municipal financing
during July totaled s54,338,511 as
compared with $48,o95, ,661 during
July. 1912. according to- The Daily
Bond Buyer. For the first seven
months of this year new financing
amounted to 1898 .243 ,9O3 as COM
pared with 1891 ,l54. .7O4 in the first
seven months of 1912.