The Washington herald., 1912-10-09
'MlY PURCHASE Chs
!. COMPANY STOCK
Revived R.nors Of Taking Over
Georgetown Company BY the
Washingtoh Light.
PROFIT no ACCRUE
FROM CLOSING DOWN
In Financial Way Change Would
Involve Total Of
100000.

Negotiations, are under way which Wfl
In al probability. result In the WashinS-
ton Gaslight Company acquiring within
the next few days the entire capital stock
Of the Georgetown Gas Company. and
with 1t the monopoly Of the gas lighting.
gas heating and gas cooking business Of
the capital
For nearly seventeen years the former
company has owned q controlling interest
in the latter. It has directed its policies.
approved action by directors and exer-
cised paternal care in every way through
the ownership Of $50 shares Of the 1000
| shares Of capital stock.
During the last few months the minor
ity shareholders have controlled the
Georgetown Gas Company. Recently they
refused to permit the Washington
company to vote its majority stock hold
ings. even going 30 far as to refuse to
pay dividends on the $50 shares Of stock
in the treasury Of the Washington Gas
light Company. holding that the latter
corporation was not legally entitled to
hold the shares.
No test case has been made Of this
question. but the general opinion in hnan-
cial circles IL that the two companies.
tied In its territory. one west and the
other east Of the line Of Rock Creek.
the Washington company has acquired
its holding acting within its rights.
The minority holders then formed a pool
to gather in the stock from small holders
and have practically succeeded in corral
ling all but a few shares Of the George
ington Gaslight Company. They run the
price up from $6o a share to $50.
Proat from Closing Down.
The asking price put up to the WASH
ington Gaslight Company by the pool con-
trolling the minority holdings is said to
be $1eo a share.
No ono claims that the actual income
producing value Of the corporation war
Of peace and harmony. and because the
directors Of Washington Gaslight Com
pany have been shown where there il a
profit in the transaction. the directors and
other officials have given the matter seri-
GUS consideration and the transaction
may go to q finality within the next five
days.
In a financial way the purchase will in
volve nearly 100000.
The profit will accrue from the closing
down Of the Georgetown Gas Company's
plant, and the sale of certain realty re-
Gently acquired. the Washington Gaslight
Company to turn on its connection with
the Georgetown Gas Company's mains
and serve gas to the latter's customers.
1t has supplied gas to the Georgetown
company before and would not be violat-
ing its charter. as the franchise. would
be still held by the Georgetown company
1t is claimed the saving through the
ending Of double force Of employees would
make the investment very profitable.
while the productive capacity Of the
Washington Gaslight Company's plants
would not be strained to supply the neces-
sary product.
Both the Washington and the George
town gas companies still have the same
capitalization that they had when organ
lied, the former $2600.000. organized in
1S4S, and the Georgetown Gas Company,
$15O, 900. organized in 1854.
Stock Of the Washington Gaslight Com
pany has recently advanced sharply.