Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-03-15
Another Suit May Yet Be Filed
Against the Washington
Utilities Company.
PROMISE TO OBSERVE
CAUSE OF WITHDRAWAL
Fifty Million Dollar Concern De-
clares Its Intention Of Comply
ing With Anti-Merger Act.

A new suit Will be fled against the
ffty-millton-dollar Washington. Utilities
Company II that concern is found to be
violating the anti-merger law passed by
Congress at the last session.
This statement was made officially at
the municipal building today, following
the action OF the Commissioners yesterday
In withdrawing the suit Instituted by the
District to prevent the big utilities cor
poration from ACQUIRING the controlling in
terest in local public service concerns.
The Commissioners action was the
result or the Washington Utilities Com
pany having informed them that it has
complied with the anti-merger law which
prohibits the owning of the stocks or
oonos or one corporation by another,
PROVIDED 1t be shown that such owner
ship includes at least 20 per cent Of the
capital stock Of such company.
Holdings Less Than 80 Per Cent.
The Washington Utilities Company is
interested in the Washington Railway
and Electric Company. and has reduced
its holdings Of stock to less than 20
per cent Of the capital stock Of the rail-
way concern. according to information
submitted the Commissioners
The plan Of the District heads is to
take the company at its word. If they
should find that the company has not
complied with the law it will be possible
for them to renew the litigation.
Gardiner L Boothe, secretary OF the
Washington Utilities Company, today
stated the company will continue in bust
ness and operate under the new public
utilities commission, the same as other
local public service corporations.
Suit Filed in November.
The suit against the company was
filed by Corporation Counsel Thomas
November %, 1912. More than 1900 de-
fehdants were named. including the stock
holders Of the Washington Railway and
Electric Company. Demurrers to the
bill were fled by the defendants, and
were argued and submitted to Justice
Barnard Of the Supreme Court of the
District Of Columbia. The object of the
suit was to prevent the merger Of any
local public service corporations prior to
the creation OF public utilities commits
sion.
Corporation Counsel Thomas, in a COM
munication yesterday to the Commits
sioners, pointed out that inasmuck az
this commission has now been created
and, In addition, Congress has enacted
IN anti-merger law, the District heads
will be provided with every facility to
proceed against the Washington Utli-
ties Company or any other corporation
that should be found to be violating the
law
The new utilities law provides thstt it
shall be unlawful for any public utility,
Hirectly or indirectly, to acquire the
stocks or bonds of any other corpora
ton engaged In the same or similar
business, unless authorized to do SO by
the public utilities commission.
May Depend on, New Law.
Thus, the public utilities commission
will decide In what instances one cor
poration may acquire more than 20 per
cent Of the capital stock of another cor
poration and where such acquisition is
made without its consent 1t will have the
anti-merger law under which to proceed
against the corporation at fault.
Corporation Counsel Thomas will rec
ommend to the Commissioners that both
the anti-merger and public utilities bills
be considered Jointly when the affairs of
public service. corporations are being
dealt with.
Mr.. Thomas said today that the COM
mission meant to deal fairly with the
corporations AZ well rs the public, and
that 1t IL giving its first demonstration
OF this fact by accepting the word Of
the Warrington Utilities Company to
the effect 1t now owns less than 20 per
cent Of the stock of the Washington Rail-
way and Electric Company.