Evening star., 1914-02-05
Opposes Sale of Stock.

attorney W llllaTl u. Johnson, repfeSeNt-
ing the Georgetown Gas Light Company.
contended against the validity of the
stock holding by the Washington COM
pany, explaining that its acquisition was
beyond its corporate rights. He claimed
that the stock should not be sold. as re-
quested by Mr. Hume and consented to
by the Washington company, but should
be surrendered to the Georgetown COM
pany and Cancelled. The testimony taken
before the court showed, he claimed. that
the Washington company had dominated
the affairs of the Georgetown company
and had secured the assignment of the
holdings of individuals to the corporation.
He pointed out that the charter of
the Georgetown concern prevents the
issuance of stock to the Washington
company because of provision re-
quring a stockho1der to be personally
liable for the debts of the company.
Such liability, he urged. the Washing
ton company could not by its charter
undertake. He claimed that no con-
sideration passed between the two
companies for the stock and that in
asking for it's cancellation no equita-
BILE right of the Washington company
was being assailed-
Assistant Corporation Counsel Ste
phens argued for the District of Co
lumbia.
He pointed out that no testimony had
been specifically offered by the District
because of an agreement that all the tes-
timony taken should apply to all the
cases and the testimony offered had sub
stantiated the claim of the local authorf-
ties that the Washington company owns
and controls the stock in question AS
to whether the company should be dis
solved or made merely to surrender its
holding, Mr. Stephens left the determina-
ton to the courts. He pointed out that
it was for the justices to decide what
court of chancery will do with the gas
company when the corporation admits
that it purchased Illegally the stock before
the passage of the anti-merSer act. but
expressed a willingness to dispose of its
holdings. but is prevented because of
pending litigation.
The District authorities will be content
he stated. to accept the courts decision
on the matter.
Testimony Is Complete.
The testimony taken before the two jus
tices was completed this morning. Late
yesterday afternoon William b. Orme.
secretary of the Washington Gas Light
Company, concluded his evidence. He
showed that April q 1912. a resolution
was adopted to dispose of the stock of
the Georgetown company
Considering the questions involved to
b.. legal rather than of fact. counsel for
the Washington company offered but lit
tie testimony. Howard $. Reeside vice
president of the defendant company. de-
MED that the offer of Robert d. Weaver
to buy or sell for $50 per share was
made in his presence.
ord Preston. a director. said Weaver
told him that you fellows ought to buy
the minority stock. You are the nat
ura. owners of it, Weaver and witness
were speaking of the minority holding
in the Georgetown company.
Henry H. Flather cashier Of the
Riggs National Bank. was called In re-
buttal by Attorney Johnson this morn
ing. Mr. F'lather is "A director of the
Georgetown company and controls sew
erai hundred shares of the minority
stock. He contradicted the testimony
of Mr.. Reesde and insisted that the
vice president of the Washington com
pany was on hand when the offer WAS
made and was near enough to hear the
the statement made by Mr.. Weaver in |
respouse to an inquiry by James NJ. |
Green as to the figure at which Mr. /
Weaver would transfer the minority |
on cross-examination by Attorney |
ia r,ington Mr. Flather supposed that
Nessrs. Reeside and Green wanted the
stock for the Washington company. He
admitted he was willing to sell for $3.50 /,
per share, stock that cost him less than |
S11O each.