The Washington herald., 1907-06-11

The much discussed application Of the
Georgetown Gaslight Company to the SUI
preme Court Of the District Of Columbia,
for permission TO increase its capital
stock. was filed yesterday, signed by
George Howard, president of the COM
pany, and attested by Robert l.. Middle
ton, secretary.
The petition sets forth that the com
pany was chartered IN 1884 with a capital
stock limited to 5000 shares. Of par
value Of S25 each The petition states tnat
through various Improvements and addl-
tions 10 the property and plant Of the
company, much more than Sl5oo0O is now
invested. and in accordance with the act
of Congress, approved June 8. 1895. the
company now asks that it be allowed 70
issue stock up 10 the value Of the plant
az fair appraisement, or so much thereof
as shall not be in excess Of $4,000 in
shares at par value OF &25 each. making
n total capitalization Of 10000
Providing the property Of the company
is appraised at more than the additional
$4,000, the petitioners request the court
that such amount be credited 10 the COM
pany as an asset, 90 count upon any fu-
ture issue Of stock that may be ap-
piled for
The petition was read TO the court by r.
Ross Perry, who with r. H. Goldsbor-
ough and G. Thomas Dunlop. appeared as
counsel for the company.
Owing 10 the fact that there was some
question as 20 the form Of notice to be
given by the company. the court took
the matter under advisement and will
announce its decree later. Meanwhile.
the value Of the property Of the company
will be determined, upon which the
amount Of the stock to be issued will be
conditioned
Move Regarded ss "FeeIer."
The significance Of the petition IS re-
garded in financial circles as a "feeler. %
20 determine whether the Washington
Gaslight Company viii be justified TO
take similar steps 10 increase its capital
stock. The relations between the two
companies IS Of so close and intimate a
character that the finanCiers Of the city
regard the acts Of one as practically the
acts OF the other.
| In the last session Of Congress. a law
was passed making it mandatory upon
/ both companies TO file with Congress
/ true statements of their property. stock
outstanding. certificates Of Indebtedness.
/ cash. cost Of operation. and profits Il is
thought by some that a large legal ques-
/ ton may arise as 10 the rights Of the
N 3 s--r-
/ issues Of stocks and bonds under the
/ terms Of the law of 1895 The Georgetown
company having a much smaller rela-
/ tive capital stock than the Washington
/ company, II is understood that Il wsz
/ determined TO try the additional stock issue
/ first with that company. and. If success
| full then to try the same thing with the
( Washington company. when the latter
would have the precedent Of the George
/ town company to fall back upon in case
/ Of any technical questions arising.
Action Long Anticipated.
The action Of the Georgetown company
has been long anticipated. and its effec,
upon the price Of shares on the local ex-
/ change largely discounted. It is expected
/ that the decision Of the court will be IA
Norable 70 the new issue of stock, and
/ that suppostion has been the inspiration
I 0f the recent rise I'm the shares Of the
I Washington Gaslight Company on the
/ local exchange
II will probably be known within a
/ short period the exact amount Of new
stock to be issued by the Georgetown
company II will probably be up 20 tbs
limit OF the additional Sl500o0.
/ In that case, it will make market foi
/ 5000 shares Of the stock. with par value
/ Of So. which is now selling on the loca
/ exchange around $50 a share The diff
ference between the par value and the
/ selling value Of the new stock constitutes
/ the melon which has been so lona
Tpening for the benefit OF the stock.
/ holders. who will be allowed 10 take over
! certain percentages OF their holdings be
/ fore II is offered the public.