Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-02-14
BILLS FILED AGAINST
Big TRACTION CONCERN
Bondholders of Philadelphia
Company Sued in U. 5.
Court at Pittsburgh
INTEREST IN DEFAULT
Action the Result of Decisions
Reached by Protective
Committee

Two bills in equity have been illcd
against the Philadelphia Company IN
:he District Court of the United states
In the western district of Pennsylvania
by holders of bonds of underlying PITS
hurgh companies upon which there has
been default in interest payments.
one was filed for Benjamin g. Allen,
acting for himself and all other holders
Of frst-mortgage bonds of the United
Traction Company of Pittsburgh. against
the Philadelphia Company, the Pitts
burgh Railways Company and the United
Traction Company of Pittsburgh. The
other was filed against the Philadelphia
Company. the Equitable Gas Company
and the Consolidated Gas Company of
Pittsburgh by the Equitable Trust Com.
pany, of Wilmington, Del
Both actions are taken as the result
of decisions reached by bondholders'
protective committees The purpose of
the latter bill Is TO enforce against the
Philadelphia Company liability for the
principal and interest Of the bonds of
the Consolidated Gas Company of the
fault in interest payments took place
two years ago.
PROTECTIVE COMMITTEES SUIT
a bondholders' protective committee
representing about Si,5OO.O 600 of bonds
out of the issue Of $j.OOO,00O, was
formed and has been engaged in Il study
of the situation in the interest of the
security holders. and the court action
is the result.
The bill alleges the combination of the
artificial gas companies in Pittsburgh
through the medium Of the Conyolida ed
Gas Company and the issue Of the COM
mon stock of that corporation to the
members Of syndicate which proceeded
TO acquire control of the Philadelphia
Company and the turning over of the
Consolidated Gas stCCk to the Philadel-
phia Company at or about the time
similar course was followed respecting
the stock control Of the United Traction
system, tn g Allegheny County Light
Company and the Charities Valley Gas
Company.
There was thus created what were in
effect four separate Incorporated depart
mcnts for the public utility enterprises
Of which the Philadelphia Company was
the ultimate own + and beneficiary.
1t Is further alleged that Tho Phila-
aelpha Company has made ". ode0uate
effort to cStmulatc the sale of art t'ttCial
gas or to maintain the plant and equip
mnnt of the Consolidated Gas Company,
1t Is averred that the course followed
by the Philadelphia Company has
amounted to an appropriation Of the
business and assets Of the Consolidated
Gas Company
DIVIDENDS ON PREF RRED STOCK
Referenc" is made to the fact that
the Philadelphia Company has always
paid the dividends on the preferred stock
of the Consolidated, although for many
vcars the earnings of the Consolidated
had been insufficient to meet the in
trrest charges.
The petition Is made that the $4,000
O0O of outstanding bonds be decrccd an
ALLEGATION of the philadelphia Company
and charged as n lien on all the prop
critics. franchises and assets OF that cor
poratiou.
COMpANY'S STATEMENT
In the case of the bill filed by holders
of bonds Of the United Traction Com
pany of Pittsburgh, the committer to-
day issued statement through its
chairman. Thomas :. Gates, and it's
council, George Wharton Pepper, In
which il explains that the plaintiff in
this suit is holder who's bonds have
been deposited with the &C mittee and
whose interests are friendly to it.
Also that the plaintiff demands in the
bill that the Philadelphia Company shall
be held by the court liable to pay the
interest accrued and hereafter to accrue
upon bonds issued by corporations whose
property has been appropriated and that
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