St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1891-11-25
THREE MILLIONS AsTRAY.
Serious Allegations Against Big
FinanCier.

NEW YORK, Nov. 24.-Wallace c.
Andrews, president of the New York
Steam Heat company and until recently
president of the Standard Gas Light
company, is likely to be involved in
law suit with the latter company as to
the validity of certain stock, amounting
to about S3.OOO,O0O. which, it is alleged,
Mr.. Andrews obtained illegally from
the company while he was its president.
Mr.. Andrews resigned the presidency
of the Standard Gas Light company
two or three weeks ago. and j. A. Bost-
wick was elected in his stead. 1t is
said that had not Mr.. Andrews resigned
when he did he would have been ex-
pellet from that Office by vote of the
directors, the resolution having been
prepared for that purpose. Immedi-
atelY after the resignation of Mr.. An
drews and the election of Mr.. Bostwick
in his place, an injunction was issued
on the application of the company to
restrain Mr.. Andrews from selling or
otherwise dispOsing of certain of the
company's stock then in his possession.
Suspicious Stock.
The company also issued the follow
ing notice: Question having arisen as
TO the validity of certain common stock
of this company, the board of directors
thereof have this day voted to close the
books for the transfer Of common stock
pending an examination, and until the
further action of the board" 1t is
charged that S1,000,000 Of the $4,000, 600
OF the gas light company's stock which
Mr.. Andrews obtained from the COM
pany, fraudulently as charged, is held
by the New York Steam company, of
which Mr.. Andrews is president and
which he is believed to control
In addition to this proceeding it is
said another action has been instituted
against Mr.. Andrews to recover block
of the gas light company's preferred
stock owned by Mr.. Andrews, and for
an account of certain disbursements by
him as president of the company. In
this suit it is charged that Mr.. Andrews
has subordnated the interests of the
gaslight company to those of his steam
heating company; that many of the
poor investments of the latter have been
charged to the former; that the unpro-
ductive properties of the steam heating
company have been unloaded on the
gas light company, and these and other
things Mr.. Andrews was able to
do through dummy" directors in
the gas light company elected through
his influence. j. A. BOStWick, the new
president of the Standard Gas Light
company, was seen at home this morn
ing and spoke very freely concerning
the rumors about Mr.. Andrews and of
the affairs of the company in general.
He says:
81 have been connected with the COM
pany from its beginning, but my vote
was always in the minority. and l gave
up attending the directors meetings.
Finally some of their notes were pro-
tested and was inundated by persons
who held the stock. TO protect myself
and those VINO had gone into the con-
Germ on account of my name, offered 10
assume all debts of the company until
its affairs could be Strengthened out.
''Mr. Andrews, whose schemes had
far outreached his capital, had made
contracts which he could not keep. As
a result paid out nearly half million
dollars in thirty days. Much against
my advice there was S5.000.OOO worth OF
stock issued. 1t was given to Messrs.