Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-09-11
Orders Suit for Dissolution of
Washington Gas Light
Company.
FORCE SALE OF STOCK
OF GEORGETOWN COMPANY
Action to Be Brought Under La Fol-
lette Anti-Merger Act of
Last Session.

The District Commissioners
this afternoon ordered the institu-
ton OF proceedings to dissolve the
Washington Gas Light Company
and require it to dispose OF its
holdings of stock in the George
town Gas Light Company.
Their action is based on the
ground that the corporation owns
stock in the Georgetown Gas
Light Company in alleged viola
ton of the La Toilette anti-mercer
law, which passed Congress at
the last session as a part OF the
District appropriation act.
Immediate Suit Ordered.
Corporation Counsel Z. H. Thomas this
afternoon instructed Francis II. Stephens
assistant District corporation counsel i'm
mediately to prepare bill to be filed in
the District of Columbia Supreme Court,
! in accordance with the order adopted by
the Commissioners.
The order is as follows:
Whereas che Washington Gas Light
Company owns. holds and controls stock
of the Georgetown Gas Light Company.
in violation of section II of the act of
Congress entitled An act making appro-
priations TO provide for the expenses OF
the government of the District of Co
lumbia for the fiscal year ending June
both. 1914. and for other purposes Ap-
proved March 4, 1918.
1T is hereby ordered: That the cor
poration counsel is directed to insti-
tute proper proceedings under sec
ton II of said act to dissolve said
Washington Gas Light Company: and
to require said Washington Gas Light
Company to sell or dispose OF said
stock and to refrain from voting the
same.
Mean to Enforce Law.
Commenting upon the action of the
board. Commissioner Newman this after
noon said:
1.-The order of the Commissioners simply
means that we propose to compel the gas
companies to comply with the anti-merger
law. The statute, which was approved
March 4 last, specifically prohibits one
gas company from holding, owning or
controlling stock in another gas COM
pany.
I'VE have ascertained that the Wash
ington Gas Light Company owns. holds
and controls stock in the Georgetown
Gas Light Company We believe that
| this Is a violation of the new law and
we have directed the corporation coun-
sci to institute proceedings. to enforce
| obedience to the statute"
Stock Holding Admitted.
| The Washington Gas Light Company
| recently filed with the public utilities
commission a statement showing that it
owns $500 shares of the stock of the
| Georgetown Gas Light Company, the
value Of the securities being listed at
$3.50
| Section IL of the utilities act referred
! to by the Commissioners as having been
violated by the Washington Gas Light
| Company, provides, in part. as follows:
That it shall be unlawful for any for
| elgn public utility corporation, or TOR any
| foreign or local holding corporation, or for
! any local street railroad corporation, gas
| corporation electric corporation. tele-
| phone corporation telegraph corporation
!, or any other local public utility corpora
| ton, directly or indirectly. tc own, con-
! troll or hold or vote stock bonds of
| any public utility corporation organized
| under any general incorporation law or
special act of the United States or au-
| thoriZed under any law of the United
| States to do business in the District of
| Columbia, except as heretofore or here
after expressly authorized by Congress -
| Penalties Provided by Law.
The penalty provided for violation of
| the act is, in part, as follows:
/ That the Supreme Court OF the Dis
trict of Columbia. on application of the
| District of Columbia by it's Commission
| ers or attorney, or on application of the
United States by it's proper officer, or on
application OF any shareholder interested
in any such corporations, shall have
jurisdiction in equity to dissolve any pub
lie utility corporation organized under
any general Incorporation law or special
section (act of the United States. or au-
| thorized under any law of the United
| states to do business in the District of
/ Columbia, Tor violation of any of the
provisions Of this section or of their
characters: and, further, to require any
foreign public utility corporation. or for
| eign or local holding corporation which
! owns, holds or controls, or which, shall
| hereafter own. hold or control any such
| stock or bonds contrary to any of the
provisions of this section, to sell or dis
| pose of the same and to refrain from
voting such stock or bonds provided.
that in case the allegations in any bill
| filed in said court relate to the owner
| ship Of stock or bonds of a local cor
poration by any foreign corporation, then
| it must be shown to the satisfaction of
the court that such ownership includes
at least 20 per centum of the caDital
stock Of the local corporation"
Seeks Cancellation Of Stock.
A suit filed by the Georgetown Gas
Light Company against the Washington
/ Gas Light Company to cancel $500 OF the