Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-02-18
CHARGES ARE DENIED
Defendants in Merger Suit Re-
ply to District Complaint.
DEMURRERS ARE FILED
Claim Bill Fails to Show Specific VIC
lation of Any Municipal
Regulation.

That the bill contains no allegations
| showing the right Of the compliments to
maintain the suit is the position taken
| in demurrers filed late yesterday after
| noon by the Washingtn Utilities Com
pany, the Washington Railway and Flee
trio Company, William h. Hibbs and
other defendants named I'm the bill filed
several weeks ago by Corporation Counsel
Thomas to enioin the proposed merger of
the public service corporations of Wash
ington.
The defendants assert they are not an
sNera BILE to the District of Columbia for
any act shown by the bill of complaint
to have been done or contemplated by
them.
The municipality lacks the ''visitorial'
power over the defendants. it is claimed,
which 1t assumes to exercise. Its bill
of complaint. 1T is pointed out. disclosed
no capacity on the part of the District of
Columbia to maintain the bin against
the defendants as to any of the matters
and things set forth In it. 1t shows no
violation or breach. 1t is alleged. of any
duty or obligation due the municipal au-
thorities from the defendant corpora
tons or the persons interested in the
proposed combine.
The defendants also claim that none OF
the acts or intended purposes charged III
the bill, if fraudulent at all. is shown to
be fraud upon the District Of Columbia
or such as it has any standing in a court
of equity or elsewhere to enjoin. The
claim is also made that the bill fails to
set out any municipal regulation. of
which any of the alleged acts or purposes
Of the defendant is a violation
No Injury to District Shown.
No injury to the District is shown, ac-
10 ho II
means of any acts performed or contem-
plated by the defendant corporations. --.e
bill does not disclose. it is stated, any
concern or interest of the municipality
which entities it to the extraordinary
remedy Of injunction.
Finally, the defendants point out to the
court that the bill discloses no respect in
which the rise or fall of the market value
of the shares Of the capital stocks there
in mentioned. nor the Injury, if any, to
the public, or to the preferred or minor
ity stockholders Of the defendant cor
porations. arising therefrom. is the bust
ness or the concern of the District of Co
lumbia, or entities 1t to maintain this or
any other suit in respect thereto.
The Washington Utilities Company and
the Observation-Disclosures Railway Com
pany urge in addition that under the al
legations Of the bill the court has no
jurisdiction to restrain them from be-
coming the owners by purchase of any
of the stock of the Washington Railway
and Electric Company. If they do pur
chase the stock. the two COR
porationS claim, and make any use of the
stock by which they violate any rights of
the Districtof Columbia, it will be time
enough for the municipality to sue, and
then 1t would have adequate remedy at
law for damages.
Basis of District Suit.
The injunction suit by which the Dis
trict Of Columbia seeks to enjoin the
merger Is based on the ground that I'M
der the consolidation act of June ), 1900,
which permitted the creation of the
Washington Railway and Electric sys-
ten, and by virtue of the local law gov
erring corporations it is unlawful for a
nonresident street railway or holding
company to merge consolidate local
street railways or public utilities. The
District will be hampered in the collec-
ton of its taxes and otherwise if this
merger be permitted, Corporation Coun-
sci Thomas claims.
The court probably will be asked to set
a special day other than a regular mo-
ton day for the hearing on the demur-
rers.