Evening star., 1950-01-25
SEC Decision Waited
Big Interests Seen in Last Ditch Stand
To Check Public Power on West Coast

which Howard L. Aller is presi-
dent. made a contract to sell the
100000 shares of Pacific Power
& Light to a syndicate headed
by B. j. Van Ingen q Co.. Inc,
with the latter to sell the stock,
a substantial part of which, 1t is
known. would be taken up by
public utility districts and thus
enlarge the public power system.
The contract calls for $4,000. 900
cash. a guarantee within two years
or less of an additional $4,000, 900
from sale of stock. and an addi-
tional amount that could bring
the total sales price to $18,500, 900
depending on what the syndicate
realizes on the sale of stock. The
agent handling the deal is Guy c.
Myers who long has represented
PUBS in Washington.
Interesting is the fact that the
biggest participant in the syn
dicate is the Allegheny Corp.
headed by Robert Young, who be-
came a rising new star in finance
when he took over the railroad
properties embraced in the old
Van Sweringen system and began
thumbing his nose at Wall Street
and its financial methods.
Belated New York Offer.
The Van Ingen coup aroused
Pacific Coast and New York fl
nancial interests which are anti
public utility. with the result that
a New York group headed by
Allen & Co., of New York, and
including leading investment
houses, came through belatedly
with an offer of $4,000 900 cash
for Pacific Power g. Light. The
purpose was disclosed when Paul
B. Mckee, president of P. P. & L..
praised the offer as intended to
keep Pacific Power g. Light in
business as a forward-looking
private enterprise" and said it had
his whole-hearted support.
The battle was joined in public
hearings the first of this week
here before SEC. where the issue
is, first, whether competitive bid
ding shall be dispensed with and,
If so, whether the Van Ingen
groups offer shall be approved.
In testifying before SEC, MIR.
Aller, American Power and Light
president. argued against competi-
tive bidding and asked approval
of the Van Ingen group offer in
keeping with the contract behind
which he said he stands. He is
against public ownership. he said,
but knew when he was licked. He
said Mr.. Mckee did not know
when he was licked and contended
the latter's continued fight was
against the best interests of the
stockholders as he would lose out
in the end. Mr.. Mckee was
present but didn't testify.
Sale to the Van Ingen group
is opposed by State public utility
commissions of Washington and
Oregon. representatives of which.
lit was charged by the Hood River
Daily Sun of January %, helped
to organize opposition In a meet
| ing in the office of attorneys of
Pacific Power and Light in Port
land on January IL. Rufus Woods,
editor Of the Wenatchee (Wash.)
Daily World. a long time cham
pion of public power and pioneer
promoter Of the plan for harness.
ing the Columbia River that
bloSsomed into Grand Coulee,
charged that the Allen and Co.
group attempt to purchase was a
conspiracy Of big private utilities
to get control of the Columbia
River Valley, for. If they can con-
troll power distribution. then they
can control the river development.
!, The decision by SEC, which
is not expected to be long delayed.
Is awaited with interest.