Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-09-15
Court Action Begun by Order
of the Board of District
Commissioners.
BILL ALLEGES CONTROL
OF GEORGETOWN CONCERN
Consolidation Of Two Companies Pro-
posed as Way Out of the
Difficulty.

With a request for the appoint
ment Of receivers to take charge
Of the affairs, property and fran
chises of the Washington Gas
Light Company. the Commission
ers today filed in the Supreme
Court Of the District of Columbia
a bill for the dissolution of the big
lighting corporation.
The bill, which was prepared by As
sistant Corporation Counsel Francis n.
Stephens. was filed in response to an
order adopted last week by the Commits
sioners directing that proceedings Of this
character be instituted on the ground
that the Washington company owns
stock OF the Georgetown Gas Light Com
pany in violation OF the La Toilette anti
merger law.
Consolidation Is Sought.
Simultaneous with the commencement
of legal proceedings by the District
heads, Howard 8. Reside, vice presf-
dent of the corporation sought to be
dissolved. today resumed negotiations
looking toward consolidation of the COM
panies Mr.. Reside said that an appli-
eaton for authority to amaigamate the
concerns may be submitted to the public
utilities commission by tomorrow or
plan the dissolution proceedings, 1t Is pre-
suned. VIII be withdrawn
Should the commission decide that a
merger such as that proposed is prohio-
:ted by law. the Washington company, 1t
IS suggested, may avoid dissolution by
disposing OF the stock 1t owns in the
Georgetown corporation.
While, admitting that this Is a possible
course which may be resorted to, Mr..
Reeside today stated that the consolida-
ton plan is favored because II will mean
q uniform price of gas and a reduction
ir the charge now made for the product
furnished consumers west OF Rock creek.
{ The bill filed in the Supreme Court
today reviews the various stock trans
actions that have taken place between
the two companies 1t contains nine pray
3rs, among them that the Washington
Gas Light Company shall disclose. under
beads OF the Georgetown company were
pdrchased with funds Of the Washing
ton concern. either directly or Indirectly.
IN whose name they were purchased, the
amounts paid therefor and the dates OF
snch payments.
Prayer for Dissolution.
rhe BIN also petitions that the Wash
lngton Gas Light Company be directed
20 dispose Of the stock or bonds which II
has acquired or controls In the George
town company. The prayers for disso-
luton and appointment Of receivers are
as follows:
That this honorable court will decree
q
Light Company. and terminate the ex-
istence OF the said corporation as q cor
poration entitled to exercise any OF its
franchises in the District Of Columbia
conferred upon II by the aforesaid act
~ Conrress and the amendments thereto.
Incorporating the said company.
That a receiver or receivers may be
aDpointed by this honorable court to
take charge of the affa RS and property
and franchise Of the said Washington
ias Light Company for the purpose OF
d1sposing of the business Of the said
. m any. discharging the debts of the
chises as may be deemed to the best in
tetests OF the stock and bond holders
and other persons interested In the af-
q rs OF the said company"
II IS alleged In the bil by the Com
missioners that the Washington Gas
Light Company Is. and has been for
many years. the owner and holder Of
company. and that II votes and controls
the same.
Said to Have Control.
Ihe Authorized capital stock of the lat
ter corporation, II is stated. is $780, GO
divided into 5000 shares OF the pa,
value Of s2o each Between the years
1885 and 1893 and as other times un-
known to the plaintiff. II IL charged. the
washington company. through onicers,
agents and other persone. purchased abou,
aooD sharoe OF the GEORGETOWN concern
ths stock being Transferred on the books
ef the company IN the names OF such
psDons and agents. although actually
hsSa. owned and voted by the Washing.
ton corporation.
10 10 further alleged that, In 1895. 26.
shsrss Of Georgetown stock were bough
In the name Of John r. Mclean. but II
reality. bought for and with the fund.
Of te Washington company. and that IN.
latter corporation thereby became and
sc now the actual owner and holder Of :
majority OF the shares OF stock of IN.
Georgetown corporation. and lie able e
direct and control the affairs OF that con
ccrn.
The Washington corporation, II I,
charged. has caused to be elected a,
president and placed on the board OF
directors OF the Georgetown Gas Ligh,
Company persons who were not resi-
cents of Georgetown. contrary to the
terms OF It's charter.
Ownership OF stock Of the George.
town company by the Washington cor
poiation is In direct violation of tn.
anti-merger law and of section 620 OF
Tire code of law for the District, il is
contended. and renders the latter con
cern liable to dissolution therefor