The Washington times., 1925-04-22
ALL SALES
STOPPED
BY RULE
Court Issues Injunction.
Spicer Reveals Inside Facts
in Various Deals

Justice Hoehling of the District
Supreme Court today awarded to
Potter & Co., investment bankers
Of New York, a temporary injunc-
ton against the Washington Rapid
Transit Company, Leon Arnold,
its presidnet, and a number of
stockholders to prevent the sale
of their stock in the concern pend
ing the determination of suit
for specific performance brought
by the New York concern, which
furnished bond of $4,000.
Some Willing To Sell.
The New York, bankers, repre-
scented by attorneys Frank j.
Hogan and Edmund Jones told the
court that some OF the officers and
stockholders of the Rapid Transit
Company had filed answers to the
rule indicating willingness to sell
at the figure named in the agree
ment with President Arnold.
According to Attorney Hogan the
holders of $3.50 shares have an
nounced willingness to accept the
price fixed by the New York
bankers and that the stockholders
Arnold, Brooke and Burrows hold
10 1853 shares and do not oppose the
Injunction.
Fred A. Spicer another stock
holder in a separate answer ex-
presses his willingness to sell and
makes charges rejecting on the
methods of President Arnold dur
ing the negotiations with the New
York bankers.
Spicer Gives His Side.
Mr.. Spicer in his answer reveals
his side of the transaction and says
that the Washington Rapid Transit
Company was incorporated in Della
ware in January, 1921, and that
Leon Arnold, its president, and he
were two Of the first five stock
holders and directors Of the COM
pany.
Mr.. Spicer says that for the past
two years he has been the first vice
president of the concern, the other
officers being: Leon Arnold, presi-
dent; Harry Walsky, second vice
president, and Norman e. Brooke,
secretary and treasurer, constituting
with William F. Burrows the board
Of directors of the company.
Brooke, according to Spicer, is
a nephew Of Arnold and Burrows
and Arnold are partners engaged
in business in the Center Market,
trading under the name of the
National Hotel Supply Company.
Brooke is also engaged i'll bust
ness in the Center Market.
Distribution of Stock.
The total number of shares Of
the capital stock of the company
outstanding April last was, &C
cording to Mr.. Spicer, q ,612 shares.
with a par value of $40 each.
Fhis stock is held by approx!
mately lI2 stockholders. Arnold
holds 4,06S shares, Spicer 5.175
shares, Brooke 4,455 shares, Wal
sky 3,405 shares, Brown $50 shares.
The eight stockholding defendants
own 20, 103 shares out Of a total of
81 ,612 shares of stock outstanding.
Arnold and Spicer, according to
the latter have been intimate
friends and associates for about
twenty-five years, their business
and offices being adjoining in the
same building.
On numerous occasions. says M
Epicer, they discussed the affairs
and prospects of the rapid transit
concern.
Mr.. Spicer declares that he had
complete confidence in AcnoId as
president and manager of the com
pany and relied implicitly IN his
dealing fairly and frankly with me
in all matters OF business
with which we were closely related
from their beginning" including
Rosslyn. Va, whose controlling
stockholders and officers are Of
ficers Of the transit company, which
purchases the gasoline, lubricating
oil, and tires required by it from
the Rosslyn company.
First Negotiations Failed.
J. NJ. Carples, of New York, en-
tered into negotiations in October,
1923, for the sale of the majority
stock of the transit company and
an option on the stock was dis
%assed at a meeting held in the of.
flee of Attorney ConraC H. Syme.
These negotiations continued for
some time, but failed to then result
In sale.
Subsequent to the increasing OF
the rate of fare February ] by the
Public Utilities Commission, diff.
ferences arose between Mr.. Arnold,
Brooke and Burrows on one side
and WaIsky and Spieer on the other
hand, regarding the policy of adj
ditional garage space.
Arnold Dpoposed the organization