The Washington times., 1912-07-18
RELATIONS OF GAS
CORPORATIONS ARE
GREATLYSTRA|NED
Georgetown Directors Will
Not Pay Dividend to
Y Washington Co.

Further fracturing of the entente cor
dial, already seriously strained, between
the directors Of the Georgetown Gas
Company and its major stockholder, the
Washington Gas Light Company, is
reported.
Developments thirty days ago had
reached the stage where the directors
tof the Georgetown corporation refused
TO permit the directors of the WASH
,ington Gas Light Company to vote the
$3.50 shares OF stock of the Georgetown
company, owned by the former
After exercising this control, voting
on directors, bond issues, and dividends,
for nearly quarter Of a century, the
directors of the Washington company
were stunned. but recognized the move-
,ment as part of the fine Italian hand
iwork of a former official.
Ca5olery failed. Questioning the le-
,gality of a recent bond issue for which
the $3.50 shares were voted, brought
mo olive branch, and the matter was
permitted to rest.
Recently the Georgetown Gas direc-
tory again took the gas bull by the
horns. At the regular meeting when the
,semi-annual dividend should have been
declared, there was no reference what
ever to the distribution. But this was
"a tender spot.
4" At the next directors meeting the
regular semi-annual dividend Of per
cent was declared payable to share
holders legally entitled to hold stock
Another gentle get-even with the WASH
tngton Gas Company.
The sting went home. Directors John
M. Green and Daniel Fraser, of the
Washington Gas Company, sailed fol-
Europe before the last blow.
Other directors have probably consid.
cred 1t, but they have maintained a dig
nified silence, have little comment to
make beyond the fact that 1t was a
mean, vengeful move, and, with Presi-
dent Letter. gave attention to other mat
tors of import.
Bound to keep busy, and at the same
time seeking a profitable way out, the
minority shareholders, as represented
in the directory of the Georgetown Gas
Company, now make positive propo'
sition to sell their stock ''in the interest
in our corporation that you now have, >
without stating just why 2,470 shares
more would control when $3.50 shares
will not or why 1t would be more lega
there is a tentative proposition, not a
finality, to buy the Washington Gas
Light Company's holdings In the George
town Gas Company at the same price.
And there the situation stands. 1t /!
the Washington Gas Company's move
but It doesn't apparently move.
Back Of the squabble lie proba abilities
A desire TO control the Georgetown Ga,
Light Company, knock down the barrier
which prevents II from doing business
this side of Rock creek, and fight thu
washington Gas Company for an ulti
mate consolidation or get out of stocl
holdings at a price that will give beauti
full prof1ts-on a basis Of about III pei
cent income-to Mr.. Letters corpora
ton.
II is understood that some share
holders of the Washington Company
have made inquiries of the directors
of that corporation. as to what step.
were being taken to assure the preser
walton Of the rights and dignity of the
company. Responses from the presiden
are reported to have given assuranc,
of proper action in due time.
What the outcome will be remains t
be seen. In the interim the directors o
the washington Gas Company are mum