The times., 1899-05-17
THE GAS DEAL FAILS
TO MAlERIALlZE
A Sufficient Amount of the
Stock Not Delivered.
President Mclean States His Posi-
ton in the Matter.
1t Is Now Thought That the Dividend
1t Is Now Thought That the Dividend
VIII BE Paid to the Share
holders.

The attempt to purchase the Washington
Gas Light Company has fallen through.
controlling interest in the capital stock
was not secured for the intending purchas-
er, and yesterday the attempt to complete
the deal was given up, and the committee
began to return the deposited stock to its
owners. II is said that the committee
which acted as intermediary between the
stockholders and the intending purchasers
at no time had more than $1,000 shares of
stock to deliver out of the $1,000 shares
desired.
There has been more mystery surround
ing this gas deal than has enveloped any
of the other numerous large transactions
of the year. The would-b be purchaser has
not been known to the public at any time,
and his identity is still in doubt. There
is reason to believe, however, that the
Stevens-C Crosby Lieb syndicate, so promi-
nent in street railroad and lighting COM
pany affairs during the past few months,
has been interested in the proposed pur-
chase, if not the actual bidder.
The proposition to buy the Gas Company
was first made several weeks ago In
tentative way. Prominent stockholders and
officers of the company were sounded
regarding the matter by former Senator
German, it is said. No great eagerness to
sell was evinced at first, but after an ad-
vance in the bid OF the intending purchaser
the agreement was entered into by the
committee representing the stockholders"
1t is said that some members of this COM
mittee signed this agreement and the sub
sequent circular to stockholders only after
much persuasion by their associates, and
that before the agreement was many days
old they were heartily sick of the entire
deal, and ready to withdraw on the slight
est pretext.
A strong opposing element among the
stockholders soon developed. 1t was
thought by many from the beginning that
this faction might prevent the consumma-
ton of the sale. This opposition took def
mite shape last week in meeting of
shareholders called by prominent holders
of stock in this city and Philadelphia. AS
printed in The Times, the meeting devel-
oped the existence of about DC, 600 shares
in opposition to the sale.
Immediately after this meeting many
stockholders who had deposited their stock
with the committee sent notices to that
body that they wished to withdraw it.
Later developments showed that this
spoiled the last chance of the deal going
through. 1t is now believed that the
shares in opposition to the sale were at all
times more numerous than those pledged
to 1t.
The principal objections made to the sale
of the company were that the price offered
by the party wanting to purchase, $50
share, was too small, and that the divi-
dend recently due on the stock of right
belonged to the stockholders and not to
the intending purchasers in the manner
provided for in the agreement. This view
was taken very strongly at the meeting
last week and 1t caused large number of
intending sellers to change their minds.
II is believed now that the dividend
will be declared within few days, as the
cash to pay it is on hand, with large
surplus in addition.
John R. Mclean. the President of the
Gas Company, was seen last night re-
garding the failure of the deal and his at
titude in the transaction. He said:
1.-The gentlemen representing the syndi-
cate came to me as president of the COM
pany, with their offer of $50 a share for
controlling interest in the company, or for
the entire capital stock. Their offer was
definite and explicit, and it was made for
the entire assets Of the company. includ-
ing all cash on hand. / considered it my
duty. as president of the company, and
Mr. Bullitt took the same view as senior
director, to notify our stockholders of the
offer. Mr.. Bullitt then had the circular
sent out. AS an individual | considered
the price offered a satisfactory one for my
stock and deposited it. Also TO several
stockholders who asked my opinion l stat
ed that ! believed the price fair one.
That is my position in the matter exactly
and wholly. A majority of the stockhold-
ers did not wish to sell on those terms
and the sale will not be made. I am
neither narticUlarlV pIpaspd nor aputely