Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-03-13
GAS COMPANY FILES
DEMURRER TO SUIT
Answers Georgetown Corpo-
ration's Request for Can
collation. of Stock.

The Washington Gas Light Company
today filed demurrer to the suit brought
against it by the Georgetown Gas Light
Company for the cancellation of certi-
ficate representing $3.50 shares Of the
capital stock of the Georgetown company
standing on record in the name Of the
Washington company.
The defendant company claims the
Georgetown company in it's bill of COM
plant has not set forth such facts as en-
title 1t to the relief asked or to any re-
lief from the Washington company.
The complaint of the Georgetown COM
pany, the demurrer alleges. shows no
injury done to that company. If any
has been done, it is claimed, the COM
pany is guilty of ''laches' or "unreason-
able delay in calling the matter to the
attention Of the court.
80 Ownership Defended.
The legality of the ownership by the
Washington company Of the stock of the
Georgetown Gas Light Company. 1t is al
legged, cannot be questioned by the
Georgetown company, but only by the
United States in a direct proceeding for
that purpose The Washington company
also claims that the relief asked by the
Georgetown company is ineQuitable. It is
pointed out that the court Is requested
to cancel a certificate of stock which is
said to have a market value of $500, 900.
of the Georgetown company. No offer. it
is suggested, is made to pay for or other
wise compensate the holder of the stock
for the certificate asked to be Cancelled.
The transaction by which the Wash.
ington company secured the stock Ger.
tificates. it is claimed. is what is known
in the law as executed" The George
town company may not plead, it is as
serted. its own ultra wires" acts to null
lily an executed transaction. AS the
stock on it's book. it cannot be heard to
complain. the defendant says, that the
transaction was illegal.
Hearing on the demurrer will probably
be reached in about two weeks.
. The question Of the ownership of the
the attention of the District Supreme
Court when Thomas l.. Hume, stock
holder of the Washington company.
brought suit against that corporation for
asked that the Washington company be
considered a trustee for it's own stock
holders and that the stock be distributed
among them. claiming 1t had been pur-
chased from the net income OF the COM
pany which otherwise would have gone
into dividends and therefore belonged in
dividually to the stockholders.
Court Denies receiver.
The Washington company denied the
need of a receiver and Justice Barnard
sustained the position taken by the COM
pany, and suggested an amendment to
the bill joining the Georgetown company
as defendant. The case is still pending.
The latter corporation in the interval
between the fling Of the Hume suit and
the action of the court brought the pro-
ceeding to which the demurrer is filed
today.
1t claimed that the Washington COM
pany has not power under its charter
to buy the stock Of another corpora
ton, and alleged that the stock GER
tif1cate was issued when the Georgetown
company was dominated by officials Of
the Washington company. The stock
had not been sold to the Washington
company. the opponent corporation
claimed. but to individuals, whose hold
ings had been purchased later by the
washington company in the open mar
ket.
last June the directors of the George
town company refused longer to &C
the ownership of the stock
nv the Washington company, and re-
fused to allow the stock to be voted.
It also declined to pay dividends on
the stock to the Washington company.
. Attorneys B. S. Minor and J. ]. OAR
lington represent the Washington COM
pany. Attorneys Brandenburg & Bran
denburg appear for. Mr.. Hume. The
Georgefown company is represented by
Attorney W.. G. johnson.
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