Evening star., 1951-02-22
100000 More
Shares Planned
.ByGas Company
Stockholders Told
Issue Would Help
Finance Exponsion
By DonoId B. HodIey

The Washington Gas Light CO.
will ask stockholders to approve
an increase in common stock to
lis million shares from the pres
ent 900 900 at the annual meeting
| on March 26.
Offering of the additional shares
Ito present stockholders would
help to meet expected expenditures
Iof between $11 million and S12
million for expansion this year.
Announcement of the financing
plan was made by President
Everett j. Boothby in presenting
the annual report of the company
at meeting and reception for
investment bankers AND officials
of Washington banks and trust
companies in the Carleton Hotel
last night.
OF the present authorized 600, ,0G0
shares. $4,000 are outstanding.
The basis on which the. new
shares might be offered to pres
ent holders was not discussed.
There was an implication that ad-
ditional bonds or loans later in
the year would meet the balance
of the company's financial needs.
Financial Position Improved.
In the annual report. Mr..
Boothby stated that the financial
position of the company improved
in the last year, with about So
per cent of the total investment
in equity capital. including pre-
ferred and common stocks and
accumulated earnings, and At per
cent in the form of long-term
debt.
with 30,700 new gas consum-
ers, 19,600 additional house-heat-
ing installations and normal VIM
ter temperatures, the company's
sales of gas in 1850 showed a %
per cent increase over 1949, to
make record of % consecutive
years of growth in volume" he
reported.
For the first time since the
change to straight natural gas,
which started in 1916, net income
approached reasonable level in
relation to the amount of capital
invested and to the constantly
increasing sales volume, although
this favorable aspect was be-
clouded to some extent by pro-
tracted litigation over District gas
rates." he added.
Net Income Doubled.
Operating revenues of $23,346,-
900 were $4,067 900 higher than
those in the previous year and
operating expenses were $685.
900 higher. Net income for 1850
was $2.489 900, an increase of
81 ,018, 900. Earnings amounted to
$3.2l share, compared with $1.68
in 1949. a.
Around $415,000 of reported
1850 revenues is in dispute in the
rate case. This is equivalent to
1928, 900 of net income, or 81 cents
share. These revenues were re-
ceived up to May 81, when a Pub
lie Utility Commission rate order
was held invalid by the District
Court. Later in the year, amounts
collected from the rate increase
were impounded. pursuant to a
court order. The United States
Court of Appeals upheld the lower
court, and the case now is before
the Supreme Court.
Supply Rate Studied.
Mr.. Boothby said the company
also has been confronted with the
possibility of a substantial in
crease in the cost of natural gas
as a result of a new rate sched-
ule proposed by its suppliers, At
lantic Seaboard Corp. The Federal
Power Commission has held pro-
longed hearings in that case but
has not issued a decision.
In announcing plans for addi-
tional common stock. Mr.. Booth
by commented that new financ-
ing would enable the company
to handle its construction require
ments on a sound basis.