Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-05-12
GAS STOCKHOLDERS
Meeting to Be Held in This City Tomorrow
Afternoon
Action of Owners of stock in Phila-
delphia Outlined in Cir
cuIRr Just Issued.

Local holders of the Washington Gaslight
Company's stock who object to turn their
stock in on the offer of $50 a share made
for it have arranged for meeting to be
held in the red parlor of the Ebbltt House
tomorrow afternoon at = O'Clock At that
time the situation and the objections which
have been raised to the acceptance of the
offer will probably be discussed fully and a
plan of action mapped out. Directing stock
holders here are acting in concert with
those holding the same views in Philadel-
phia and other places.
About one-third of the gaslight COM
pany's stock is said to be held by residents
of Philadelphia, and letters received from
there state that holders of 10000 shares
have already agreed not to place their hold
ings in the pool. Suggestions have also
come from that city for movement look
ing toward the control of the gas company
by those who are now largely interested in
Its stock.
Line of Action.
A circular has been issued by the Phil
adelphia people who object to the sale, CIV
ing their reasons for such objections, and
proposing general line of action for pro-
lection. They claim that the offer should
include the dividend due to the stockhold-
ers. claiming that many of the holders are
dependent upon the regular receipt of the
dividend, and that its omission has worked
a hardship to many, and that the offer of
interest at the rate of per cent upon the
selling price of the stock, TO be paid in in
stallments. would not be equal to the
amount of the May and August dividends.
They object also to the method of pay
rent, holding that If the stock were sold
it should be paid for at once, in order that
sellers might immediately reinvest their
money without loss. The price of $50 per
share is also objected to in the circular,
the statement being made that the gas
light stock has In the open market sold at
that figure within the past few months.
and that If sold In bulk, according to prece-
dents in such transactions the price should
be more.
Similar transactions.
number of instances are given as to the
price received for stock in similar transac-
lions, among them those of the United
States Electric Lighting Company, the
Metropolitan Railroad Company and the
gas company in Newark. n. j.. in all Of
which. it is claimed. much higher COM
parative price was paid for the stock.
The plan of action which Is called for by
the circular is, first, not to sell the stock
at the price offered second. to call a meet
ing of the stockholders for an early date to
arrange for united action and for the ap-
pointment of q committee to look after the
joint interests and the protection of the
stockholders of the company
Minority Representation.
The statement is made in the circular
that there need be no fear on the part of
the stockholders of possible results in
the event of their not agreeing to sell, as
even If the syndicate should obtain a ma
jority of the stock their holdings would re-
main in their present status. The circular
further says that in the event of the syndi-
cate buying a majority of the stock the
minority will demand representation
the board of directors and says:
There has never yet been case where
determined minority in a solvent company
has not held its own and come out victor
ious against any attempt on the part of the
majority to freeze them out
The circular also says: While the pro-
posed sale will be resisted, and which is al
ready, no doubt, defeated ii is not the pur-
pose to make any undue reflection upon the
committee whose names were appended to
the circular of April a.
If any of the stockholders have already
forwarded their stocks, the circular urges
them to withdraw their stock by letter
telegram to the Fourth Street Bank.