The Washington times., 1913-03-15
TO BRING GAS SUIT
UNDER NEW LAW
Stockholders Of Washington
Gas Light Company to Pro-
ceed Under Amendment.

a movement is on foot upon the part
of certain shareholders of the Wash
| ington Gas Light Company to bring a
suit in equity under the new public
| utilities law to GUST the present man.
agement of the company and force the
| REIMBURSEMENT of the shares of the
Georgetown Gas Company now held by
the Washington company. That such a
suit is about to be prepared became
known today.
Although the Hume suit to name a
receiver for the Georgetown stock was
disallowed by Justice Barnard under
general equity rules, the judge declared
in his opinion tnat the Georgetown
stock was illegally acquired and held
by the Washington company.
But the suit was brought before the
new Law was enacted. Since then the
La Toilette amendment has become ef-
fective and one of its provisions is that
a shareholder of a company may bring
suit against any company which unlaw-
fully acquires the securities of another
in the same line Of business. This pro-
vision is believed to supply the legal
ground work for a stockholders suit
that was lacking in the prior proceed
ing
II will be alleged, ii is stated, that the
directors of the Washinfton Company
have for a year refused to part with the
stock of the Georgetown Company and
have forced a condition upon the
Georgetown Company that has made II
necessary for a part Of the people Of the
District to pay a higher price for gas
than the other part.
The withdrawal of the suit of the
District against the Washington Utili-
ties Company is taken in some quarters
as meaning that the Washington Utili-
ties Company may no go ahead with
its financing plans under the general
public utilities law, the La Toilette in
hibition Notwithstanding. Men interest
ed in the big holding corporation de-
clare that they will now be able to
show the commission that their plans
are legitimate and necessary for the
development of certain public utili-
ties here and that they will be enabled
readily to carry out their plans, the
first of which is to effect an exchange
of securities with the Washington Rail-
way & Electric Company.
Washington Railway, common, was
again strong on the Washington Stock
Exchange today The bid price ad-
vanced a point and there was none
offered under g. an advance of eI
points over the offered price yesterday.
There was no stock to be had at these
prices and none came out. The with
drawal of the District suit against the
WASHINGTON Utilities Company was
taken as a favorable factor.
The price of Farmers and Mechanics
National Bank stock advanced sharply
today. There was a bid for 100 shares
and the bid price was raised 10 points
to 265. but none was dislodged.
Mergenthaler eased o: slightly and the
bid for Capital Traction was lowered
half point Washington Gas bonds were
stronger.
The trading today was small.
The National Banks may hereafter
make deposits on account of the per
cent redemption fund which any active
designated depository of Government
funds An order to this effect, under
date of March 10. by Assistant Secre-
tary R. o. Bailey, was received today
by the National Banks of this city.