Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1912-06-11
POWER MERGER IS NOT
A TRUST, COURT HOLDS
Judge Pendleton SuStainS De-
murrer of Georgia Railway
and Power Company

The Georgia Railway and Power
company. the S57,OO0,OOO merger OF
water power interests, is not a trust
under the laws of this state, accord
ing to the decision of Judge ]. T. Pen
dleton, of the superior court, who on
Monday morning sustained the demur-
red of the company in the case brought
against it by Louis B. Magid.
The supreme court. however, viii
have to review the decision, as the at
torneys for Magid announce that they
will appeal from the judgment of the
superior court.
The SUIT was brought against the
Georgia Railway and Power company
and one Of its subsidiary organizations,
the Georgia Railway and Electric com
pany, by Magfd who owns 105 shares
of the stock OF the latter company.
ASKED INJUNCTION
He alleged that his objections as a
stakeholder to the merger had been
steam rolIered, and asked the court for
an injunction to restrain the lease of
the electric company by the power
company from becoming effective. He
further alleged that the Georgia Rail-
way and Power company was a combi
nation in restraint of trade and con-
stitutIonally Illegal, and prayed the
court to declare the merger null and
void
The demurrer of the defendant com
panies was made on several specific
grounds. One was that at a stockhold-
ers meeting Magid had not OBJ
jected sufficiently to the electric COM
pany's action in agreeing to the lease,
and on this ground the demurrer was
sustained, the court holding not only
that Magid should have objected more
strenuously In the meeting, but that he
should have called a stockholders
meeting to protest against the action
before he brought the SUIT to declare
the merger void. His answer to this
was that as the majority Of the stock
holders had already voted for the
measure, another melting to review
the action would have been useless.
BASIS OF DECISION.
Judge Pendleton based his opinion
that the Georgia Railway and Power
company is not a trust on the decision
in the case Of The State VS. the Trust
Company Of Georgia. Inc decision foI
the defendant in this case was made
by the supreme court in the nineties,
when an effort was made to dissolve
combination of Atlanta trolley car
companies, which resulted IN the for
nation OF the Georgia Railway and
Electric company.
The merger in that case was similar
to the one which has resulted in the
formation Of the Georgia Railway and
Power company, and under the rulings
of the supreme court in the former in
stance, the latter company is not a
trust, the jurist held.
Attorney Edgar Watkins, one Of the
leading counsel for Magid, stated after
the decision had been announced, that
IN the appeal to the supreme court that
body will be asked, in connection with
this case, to review its decision in the
State VS.. the Trust Company of GeOr
g1a case, with especial reference to
the acts of 1909 and 1910. which came
after the decision in the Trust COM
pany litigation had been made.
The important case has been on trial
in the motion division Of the superior
court for three days. Attorneys for
Magid were Watkins & Latimer, and
Westmoreland Bros. The Power COM
panles were representer by Charles 7.
Alex King and l.. z. Rosser.
Magid. in addition to the superior
court suit. has brought litigation in
the federal courts against the Georgia
Railway and Power company. This ac-
ton was brought uTder the Sherman
anti-t trust law. and through it he seeks
10 recover triple damages, which would
amount under the suit to s2,1EO, 600,
from the power company.