The Washington times., 1912-06-05
MINORITY HOLDERS. !.
CONTROL MAJORITY
IN GAS ELECTION
Georgetown Company Re-
fuses to Permit Washing
' ton Company to Vote.

At the meeting Of the shareholders
of the Georgetown Gas Company, held
yesterday afternoon, the directors re-
fused to permit the Washington Gas
Company to vote the 3,030 shares of
stock owned by the latter corpora
ton.
For more than twenty-five years the
Washington Gas Company has abso-
lutely controlled the Georgetown
company through its ownership of
5000 shares, out of total of 5000
Nc attempt has been made heretofore
TO abridge the right Of the majority
ownership TO vote. On AL matters, divi-
nena and pond Issue by the lesser cor
At the last election Of directors OF
the Washington Gas Company. Richard
Fl. 'ioldsborough, longtime director ani
counsel for the Wa shngton Gas Com
panY. fas not reelected. and few
months previous II SUCCESSOR had been
chosen to John r Mclean, long presi-
dent Of the Washington Gas Company.
and clos" personal friend Of p. H.
GoldsboroiIgh.
Leader of Opposition.
Richard H. Goldsborough was elected
a director Of the Georgetown Gas Com
pany and made its attorney soon after
his retirement from the Washington Gas
Company. Mr.. Goldsborough and the
president of the Georgetown Company
have led the opposition to the claims
Of the Washington Gas Company to the
right to vote It's holdings.
A year ago the stockholders of the
Georgetown Companay approved an isN
sue Of 100000 per cent bonds, the
vote of the $3.50 shares owned by the
Washington Gas Company being cast
for the bond issue and the attendant
mortgage.
Ftnanciers claim that an interesting
legal question arises. II the Washing
ton Gas Company voted for the bonds
and Is now barred from voting for di-
rectors, what is the status of the bond
issue? What the status of every action
Of the Georgetown Company wherein
the 5000 shares have been voted and
exercised virtual control?
A director of the Georgetown Gas
Company claims that the object of the
refusing to permit the. Washington Gas
Company to exercise its right is to force
the latter to purchase the minority
holdings or Ito permit the Georgetown
Washington Gas Company. -.'
Price of the Stock.
The price at which the minority hold
ers acquired their stock is said to be in
: the neighborhood of $3.50 a shore.
Within the last year there has been a
constant ABSORPTION of the Georgetown
stock until there. is ..,,preesieafiy. none
outstanding save as owned by the two
interests. the majority and minority.
In this campaign of absorption the
price of the Georgetown shares were
advanced from $65 share to $685. and
none is offered now under $50 a share.
The bid price Yesterday was $40, ami
today SIPS. Only d few odd lot trans
actions have been reDOrted
During the period of ownership of the
Georgetown aGs Company the Wash
ington Gas Company has made no
movement to conceal it's possession OF
1850 shares. 1t has voted the stock
listed It in itE annual report to the
shareholders and to Congress-, and to
the Commissioners Of the District es
part of its assets. The charter of the
Georgetown Gas Company is said to be
especially valuable
The old Georgetown directors wers
reelected with the exception of William
A. Mearns, who, because of the fact
that six of the directors must live In
Georgetown, retired in favor of hia
business partner, Charles P. Williams.