The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-10-24
MERGER
STRIKES A SNAG
STATE CORPORATION COMMISSION,
IN INFORMAL OPINION, SAYS
IT'S UNAUTHoRIzED.
BACK TO COURT AGAIN
STOCKHOLDERS WHO OPPOSE
PLANS OF NEwLY-CHARTERE
ELECTRIC ROAD ACHIEVE
THEIR FIRST VICTORY.

oyerrnling the county Circuit court
and the Supreme Court of Appeals, the
State corporation commission yester-
day, In an informal opinion, declined
TO approve the proposed merger Of
the ACKNOWLEDGEMENTS Railway en-
pany and the two public utility cor
porations of Alexandria, Va.
The ruling Of the commission, n
seems. hangs upon one point--the fact
| that the Maryland Virginia Railway
company is not operating at ALL has
tnever turned a wheel, and, therefore.
its amalgamation with the Braddock
Light and Power company and the
Arlington Electric company would not
be legal on the point of whether
the merger could be legally effected
II the company was in operation, the
commission reserves It's decision.
Upheld by Court
The matter Of the merger was first
taken up IN the Circuit court of King
William county on a petition for an
injunction to enjofn the merger
brought ny oh3ecting stockholders in
the two Alexandria companies. judge
! Thornton refused to interfere in the
matter, holding that there was moth
ing irregular in the proposition. The
case was then taken to the Supreme
Court of Appeals, and Judge keith,
after hearing argument. sustained the
court below. Then the compliments
J appealed To The State corporation COM
mission, submitting the case informal
! ly to that tribunal. with the result
/ stated. Through the medium of the
t informal opinion rendered yesterday
| the petitioners can take the matter
back to the Supreme Court or APP
peaIs on a petition to review the ac-
| ton of the commission, and II la I'm
! derstood that the corporation com
mission will be asked for written
opinion in order that this course may
/ be taken.
| Matter Of Much interest.
Tho proposed merger has excited
much interest and no little talk, which
| was not confined 10 Alexa ndffa. IL
has been the persistent report that
! the Observation-Disclosures Railway COM
pany, which was only recently char
tered by the virginia corporation COM
mission. WAS planning to construct
i great electric line from Alexandria To
i Baltimore in competition with exist
| ing lines, and that the power plants
| Of the Alexandria companies were es-
! sentiai to IT'S purpose. The move TO
/ gain possession OF the two Alexandra
/ power plants met with determined OPP
position, and the plans of the new
= company, whatever they are, VIII De
! held ND. until this legal aspect of the
matter ia disposed of. At present not
n spike has been driven nor a step
taken for the construction of the pro-
posed trunk line, and the corporation
| only exists ON paper.
/ In it's informal conclusions, handed
! down Yesterday, the State corporation
commission says:
Commissions Opinion.
First That, upon the concession
made IN the argument that the Mary
! land Virginia Railway company is not
now operating by electric power, IN
deed is not operating at all. 1t cannot
be said to have the power to do the
business of az general electric light
ing and power company, fnaf theFe-
fore the commission Is of the opinion
q that the OBSERVATION-DISCLOSURES Railway
company il without authority to merge
with the Braddock Light and Power
company, incorporated. and the Ar
lington Electric company. Hsrce the
commission declines at this time TO
approve the proposed merger.
! Second The commission reserves
its opinion as to whether such q
merger could be legally accomplished
under the Virginia statutes II the
Marylau- Virginia Railway company
were at this time operating line OF
raiiway by electric power.
Third Inasmuch As the whole pro-
eeeding has been entirely informal
It Is not deemed necessary by the COM
mission to file any written opinion
II either party des res to appeal from
the conclusion reached as above
stated, proper record can be made,
so that such an appeal can be taken
TO the Supreme Court of Appeals.
in which event a written opinion will
be filed.
Allen Caperton Braxton and Leo p
Harlow appear are representing the
lobjecting stockholders of the Alex
aniria companies. and Gardner L.
Boother and John S. Barbour repre-
sent the ACKNOWLEDGEMENTS Railway
company.