Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-05-29
A TRUST DOWNED.
RECEIVER TO BE APPOINTED FOR THE
CHICAGO GAS CONCERN.


How the Trust Proposed TO Dispose Of Other
Compnnies' stock-The Right TO Trans
fer Denied-CompIere History Of the
Gigantic Comblnaiiou.
CHICAGO, May 28-Judge Collins thi s
morning gave lengthy opinion in the case
Of Charlton VS. the Chicago Gas Trust. In
substance His Honor decided to appoint q
receiver for the Gas Trust tomorrow at 10
o'clock and to enjoin the trust, which is
composed Of four companies, from trans
ferring its stock or any moneys on hand or
other assets to the Fidelity Insurance, Safe
Deposit and Trust Company of Philadel-
phis. The defendants were the Chicago
Gas Trust Company and the several men,
bers of its Board of Directors, the Chicago
Gas Light and Coke Company, the Con-
sumers' Gas Company, the Equitable Gas
Light and Fuel Company and the Peoples
Gas Light and Coke Company, all of Chi
csgo, and the Fidelity Insurance, Trust and
Safe Deposit Company of Philadelphia.
From the evidence submitted, said the
Court the contention in the case was over
the following state of facts: The Chicago
Gas Trust Company was organized in April,
1887, with capital stock of S25, ,O00, 900,
divided into 250, 900 shares of the par value
of 500 each. A large majority of all the
shares of stock issued By these respective
companies was acquired by purchase After
these purchases the Gas Trust Company
deposited with the Fidelity Insurance.
Trust and Safe Deposit Company OF Phila-
delphia all of the shares of Aforesaid, which
deposit was alleged to be in trust for the
stockholders of the Gas Trust Company, and
for the security of the holders of the mort
gage bonds OF the four Chicago gas COM
panies then issued, or that might be issued
thereafter. The Chicago Gas Trust Com
pany itself has issued no bonds
The contract entered into by and between
the Gas Trust Company and the Philadel-
phia company further provided that any
person authorized SO to do by the Board of
Directors OF the Gas Trust Company,
or by the President, where the
Board of Directors had made no
other order, might vote all the shares at the
respective meetings of the four gas
and that the Gas Trust Com
pany should in every respect and manner
stock SO deposited, except that it might not
sell, transfer or assign, or otherwise pledge or
b hypothecate, the same or its interest thereon;
that said stock should remain on the books
of the several companies in the name of
and as the property of the Gas Trust Com
pany.
This action was afterward unanimously |
ratified and confirmed by the stockholders |
of said company. Then the Board of Direc-
tors of the Gas Trust duly requested the
company to surrender the
,aid sales of stock to the respective COM
oanies issuing them and to receive therefor
,ew certificates in the name of the Phila-
lelphia company for the same amount, and
o acknowledge that it was holding such
lew certificates as it held the old ones. The
Fidelity Company complied with all these
equirements.
Continuing, the Court held that Charlton
lad the right to bring a suit of this
ature, and that the pleadings ard evidence
IS established in the case were sufficient to
the appointments of a receiver.
dembers of the City Council generally ex-
ress.d qualification at the decision. The
pinion was expressed that its result would
e material reduction in the price of gas,
9th to the city and to private consumers.
At the afternoon session OF the Chicago
took Exchange Gas Trust opened at 80, or
points under the morning price. but was
,on hid nm to 64Z and offered at 65A