The Washington times., 1913-03-15
HUME REPLIES TO
LETTERS GAS SUIT
Says Stock Was Deposited With
Understanding That Plaintiff
Would Maintain Price.

Answering the petition of Joseph Lei
ter, who filed suit February 8 to fore
close a lien on 5000 shares of Washing
ton Gas Light Company stock belong
ing to Thomas L. Hume, the latter, the
defendant in the action, informs the
court that the shares were not depos-
tied necessarilyto secure a loan of
00o0 but also upon the further dis
tinct and Independent understanding
and agreement that the plaintiff would
maintain and increase the price"
It is admitted that various certificates
aggregating 5000 shares of capital stock
of the corporation were deposited with
the plaintiff as collateral security for
the repayment of the loan, but the right
of the plaintiff to foreclose the lien is
combatted The loan is alleged to have
been due February l, last.
Mr.. Hume tells the court that for
number of years past he has been
large stockholder in the Washington
Gas Light Company, and ::Has taken
an active interest in the effort to secure
proper and economical administration
of its affairs to he end that the stock
noldert might obtain such return upon
their investment as was justified by
the amount of business done by the
said company.
Says He Opposed Letter.
1t is claimed by Mr.. Hume that he
became -dissatisfied in the year 1911
With the management and gross ex-
travagance INDUCED in by the said COM
pany under the sanction of its president
and otherofficers, and he accordingly
took steps toward securing the retire
ment of its than president John r. Nc
Lean, which finally resulted in his
resignation on or about the LIST Of De
cember, 1911"
within a few days thereafter the
plaintiff, who held but ten shares of
stock of the Washington Gas Light
Company, was by its beard Of direc-
tors elected as its president 10 fill the
unexpired term" continues Mr.. Hume
in his answer. He adds that Mr.. Letter
then took active steps TO win election
At the annual meeting on February 5.
1912, and to that end employed such of
the force Of his office as was possible
to obtain the necessary proxies, and
that It was necessary for his represen-
tatives to go to New York and Phila-
delphia for that purpose.
Mr.. Hume AYERS that It was during
this campaign that the $3.50, 900 loan was
negotiated. He claims that Mr. Letter
requested and obtained conference
with the defendant" and that mis- CO.
operation was sought TO the end that
the plaintiff and his associates might
be elected a S officers" II is stated by
Mr.. Hume that he was actively oppos-
ing Mr.. Letter at the time.
Says Market Value Declined.
Mr.. Hume points out to the court
that on January II, 1912. when the
agreement was signed and the 5000
shares Of stock delivered, it was selling
between 81 and 9l1s per share which
left an equity in the stock in favor Of
him above the amount of the loan of
approximately sli.5o0. He says that
after the stock was turned over to Mr.
Letter. the latter made on effort TO
maintain the market value, which stead
lily declined, and that when Mr.. Letter
notified him in August that demand for
payment would be made at maturity,
the shrinkage amounted to $4,000,
wiping out his go equity.
In conclusion, Mr. Hume charges
that:
This defendant further says that he
verify believes and therefore AYERS that
the plaintiff has Intentionally failed and
neglected to maintain or support the
market for said stock and has permitted
1 ito decline in price in such an extent
that its market value is below the
amount of the loan made by the plain
taiff, thought the intrinsic value is
greatly in excess thereof. with the de-
liberate purpose of purchasing the same
sonal gain and advantage and to the
serious loss of the defendant"
Attorneys Brandenburg G. Branden-
burg represent Mr.. Hume.