Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-11-25
DISTRICT HEADS DIRECT :
PREPARATION OF BILL
Mandatory Injunction Asked to Cam
Gel Stock Sales Already Made.
PROMOTERS PUSHING PLANS
Within Two Hours After Commits
sioners' Action Is Filed Ar
rangements Are Made for
One Transfer.

All of the public service corporations in
the District of Columbia, with the ex-
ception OF the Capital Traction and Old
Dominion and Washington railway COM
panies and the telephone and gas cor
porations. and about two Thousand per-
sons. including the stockholders OF the
Washington Railway and Electric Com
pany, are named as the defendants in q
bill filed by the Commissioners in the
District Supreme Court today to prevent
a merger Of local utilities by the new
fifty-millon-dolla Washington Utilities
Company.
The bill, which was prepared by Cor
poration Counsel L. II. Thomas at the di-
rection of the Commissioners, was filed
shortly before noon. and within two hours
the merger promoters had completed
plans for the acquisition OF the first Dis
trict utility to be absorbed by the man.
moth corporation.
Vote for Amalgamation.
Stockholders OF the Washington Ctili-
ties Company and the Washington Viz
ginia Railway Company met at Alexan-
dria and Mount Vernon, respectively, this
afternoon and voted in favor OF the ANAL
gamation Of the two concerns notwith-
standing the fact that both are named as
defendants in the bill and are sought TO
be perpetually enjoined from becoming
parties to a merger.
AS had been expected, the Commission
ers did not apply for a temporary re-
straining order. This means that the suit
will be brought to trial in the usual way.
while the merger promoters Will be
forced to proceed with their plans at
their own risk in SO far as the probability
OF a court decision requiring dissolution
Of any merger effected is concerned.
Attorney Gardiner L. Boothe, attorney
for the Washington Utilities Company.
probably will make application at once
for ratification of the action taken by
the stockholders today favoring amalga-
nation Of that company and the Wash
ingtOn-Nirginia Company. What plans
are contemplated for the big holding
closed.
Stockholders Named.
Attached to the bill filed by Mr.
Thomas today and recorded as defend
ants are the names of all the stockhold-
ers Of the Washington Railway and Elec-
trio Company. The stockholders will not
be subpoenaed, however. instructors to
this effect having been issued by the cor
poration counsel.
In addition to the stockholders the fol-
lowing persons are named as defendants:
Clarence p. King, s. r. Bowen. Charles
j. Bell, Milton E. Allies. Clarence f. Nor
rnent, Woodbury. Blair, George Trues-
deli, William Loeb, jr.; William B. Hibbs,
Alexander Suter, Samuel L. Monroe, G.
Washington Lewis, H. Noel Garner, Gar
diner L. Boothe, Richard b. Washington
and j. Randall Cation.
The corporations named as defendants
are the Washington Utilities Company.
Washington-Virginia Railway Company.
Washington Railway and Electric Com
pany, AnacoStia and Potomac River Rail-
road Company. Brightwood Railway Com
pany, Capital Railway Company. City
md Suburban Railway Company. George
town and Tenleytown Railway Com
pany, Potomac Electric Power Company,
Washington and Rockville Railway Com
pany, Washington, Woodside and Forest
Glen Railway and Power Company and
Braddock Light and Power Company.
The bill is a lengthy document, contain
ing forty-one typewriter pages, In addi-
ton to several exhibits. The right of the
set forth, the action being brought, il II
stated, in the public interest. and to pre-
vent special injury andf damege.
Assets Are Considered.
Reference is made to the assets of all
the companies mentioned as defendants,
those Of the Washington Railway and
Company coming in for principal
1t is charged that the
dividends declared on the common stock
Of this company have not been earned,
but have been declared to aid the 'mer-
ger scheme.
In this connection the bill recites that
the said Washington Railway ana Elec-
tric Company. about the LIST OF January.
1912. had issued and outstanding s6.-
JOu,OOO of common stock and $s.Joe.o00 OF
5 per cent cumulative preferred stock.
which shares Of both said stock being OF
the par value OF 500. and of which said
common stock the company owned $L3, 400
and of which said preferred stock the
company owned s6i,3JO. That dividends
on the preferred stock have been regu-
Iarly paid semi-annually in July and De-
cember since December /. 1904; that 1
per cent dividend was paid on the said
common stock December !. 1853, and
per cent dividend was paid on the said
stock each of the years 1910
and 1911; that March 1, 1912, a quarter
y dividend Of one Ter cent was paid on
the common stock. thereby increasing the
annual rate of dividend to per cent"
Dividends Declared.
1t is then asserted that the dividends
we're declared through the efforts of the
directors OF the Washington Railway
and Electric Company, the bill mention
ng specifically Clarence p. King and Will
lam r. Hibbs. to enable them to specu-
ate in the stock. whereby. 1t is charged,
he directors have increased the market
,uotations OF the stock and organized the
Utilities Company ''for the
,urpose of disposing Of the said stock
nv means of sale or exchange thereof
or either or both OF the stocks of the
after company.
reference is then made to the report
IF the railway company transmitted to
Congress for the year 1911. showing that
he net earnings of the system were
;57d. .422 IS, a dividend OF 8 per cent paid
N SS. 100000 preferred stock amounting
% $425 900. ana a dividend OF 2 per cent
,aid on $6. 500 900 common stock. amount
ng to $4,000. making a total dividend
If &555.OO0, and showing a surplus OF only
ri. .422.7S.
The present and advancing market
quotations Of said common stock are not