The Washington herald., 1912-11-26
By I. A. FLEMING.

in court a Voluminous Dill, IN winch ne
cites facts and theories, plausible and
otherwise, regarding the proposed ends
and aims OF the Washington Utilities
Company. He asks that an injunction
be issued restraining a merger OF any
Washington utilities with the big SlO0'
600, 900 corporation.
He even goes further, and demands
that a mandate issue compelling the
WASHINGTON Utilities Company and its
shareholders to return all stocks ac-
quired by exchange CT otherwise to the
owners thereof before said exchange or
sale was made.
Further charges of speculative opera
tions, intent to defeat the government
and District authorities, &c. are made
The right of the Potomac ELECTRIC
Company to furnish power to the WASH
ingto1 Railway and Electric Company Is
also questioned.
Continuing on the line of assertion that
they have made so often, the oftcers
and directors OF the Washington Utili-
ties Company will probably go into court
and make answer that mo merger Is or
has been contemplated.
As for the redistribution Of stock pur-
chased to original owners, it would seem
as If the Corporation Counsel had un-
dertaken the impossible.
owners of probably 1000 shares Of
stock Of the Washington Railway and
Electric Company who gladly disposed
OF their holdings on a rising market at
$40 to SO advance. or even S20a$25
share advance, who found a market from
S75 TO S9S a share for stock that cost
them a fraction of the amount, would
laugh at any order to turn back the
cash.
Either the speculative movement that
preceded the formation of the Maryland
Virginia Company or the organization
OF the holding corporation enabled hold
ers OF the common stock Of the company
10 realize prices that they may nave
dreamed Of but never expected TO real
iZe.
The man who sold 1000 shares Of his
Railway common at 500. that cost him
$40 a share. could hardly be persuaded
by any mandate to give 1t back NO
law would or could compel the exchange.
Such a mandate would cause much
amusement.
Any buyer may acquire securities in
the open market il the price meets the
views Of the seller. Courts have sus-
taincd time and again the right Of bar
gain and sale. and have enforced con-
tracts.
Much ol the Washington Railway
stock was bought on the open market,
on the Washington Stock Exchange, un-
der its rules and regulations. and cash
paid. therefore, within twenty-four
hours
Comment last night in financial Cir
cles was generally favora BILE to the the
ory that the Washington Utilities Com
pany had not exceeded its rights; that
it and its predecessor. the Maryland
Virginia Company. mad acted within the
strict letter of the law.
They have n no way disturbed the
actual property of the Washington Rail-
way and Electric Company. The Wash
inGtOu Utilities Company has no right
to change or attempt to change in any
way the charter rights of the Wash
inSton Railway and Electric Company
granted by Congress. nor could the big
corporation operate tn" property Con-
EIess and the District officials will have
just as much control of the property
a. it ever had. no matter who may own
the stock.
The Washington Railway and Electric
Company must needs operate the prop
'rty.
IT would be impossible to ''unscrambIe'
the holdings of Washington Railway and
Electric shares in the treasury Of the
Washington Utilities Company without
smashing prices. 1t will. in all prebabil-
itv. never be attempted unless the finan-
Cial resources OF the Washington Utili-
ties Company become exhausted.
Financial interests look upon the entire
matter as a scheme to bring the Wash
ington Utilities Company to the atten-
terest Of a public utilities commission
for the regulation of the utilities of the
city.
The question OF the right of the Po-
tomac Electric Light and Power Com
pany TO sell current TO the Washington
Virginia Railway Company is an inter
esting one.
1t is simply cited that the Potomac
Electric Light and Power Company is
now selling current in Virginia and to
the government itself for use at the
great wireless station at Arlington.
That the entire matter will receive air.
ing in court and action should be a
source of satisfaction to all interests
concerned.
That there are interesting legal mat
ters involved goes without saying.
Federal incorporation, a utilities COM
mission, &c, probably await only the
assembling of Congress. now but FIVE
days away.
And one hour after the bill was filed
by Corporation Counsel Thomas. the
shareholders Of the Washington Utilities
Company in special session at Alexan-
dris decided to purchase the Washing
ton-Virginia Railway Company, il the
shareholders would sell.
An hour later at Mount Vernon, on
government reservation, the shareholders
Of the Washington-Virginia Railway
Company accepted the offer of the
Washington Utilities Company, and the
first absorption had been completed, all
but the sanction OF the Virginia COM
mission.
Gardner Boothe left at once with the
records OF the meeting, he being an on
Ger Of both companies. as is the presi-
dent Of the Washington Utilities Com
pany. to lay before the Virginia COM
mission the results Of the two hours
work and ask for approval.
He will probably get it.
Being then an operating company the
Washington Utilities Company will go
after the small electric companies in Vir-
ginia that 1t did own, but which the
Virginia commission made It drop.
There was a decided money furry in
New York yesterday afternoon when the
rate rose to III per cent, but it eased
of and closed around 6lf per cent; that
is sharp call rates.
The banks have lost about $4,000, ,OoO
since the statement was prepared last
Friday the subtreasury taking the cash