Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-11-25
ANOTHER HOEY CASE
Wallace Andrews, President of
a Gas Company, Out.
STOCK FOR SIS, 900, 900 WANTED
A New President Elected and Notice Given
That the Stock Transfer Books are
Closed for the Present-The
Charges-A Statement.

NEw YORK, Nov. 24-Wallace c. An
| drews, president of the New York steam
company and, until lately, president of the
| Standar gaSlight company, is likely to be
| involved in lawsuit with the latter COM
pany is to the validity of certain stock,
| amounting to about s3,000,000. which,
it is alleged, Andrews obtained
| illegally from the company while he
was president. Andrews resigned the pres
idency of the Standard gaslight company
two or three weeks ago and j. y. Bostwick
was elected in his stead. 1t is said that
had not Andrews resigned he would have
been expelled from that Office by Il vote of
the directors resolutions having been pre-
pared for that purpose. Immediately after
the resignation of Andrews and the cleo
ton of Bostwick IN his place an injuntion
was issued on the application of the COM
pany to restrain Andrews from selling or
| otherwise disposing of certain of the CON-
pany's stock then in his possession. The
company also issued the following notice:
'Questions having arisen as to the valid
ity of certain common stock of this CON-
pany, the board of directors thereof have
this day voted to close the books for trans
fer of the common stock pending examna-
ton and until the further order of the
board
IL is charged that s1.SOO, 900 to $4,000. 900
of sthe gaslight cOmpany'S stock, which
Andrews obtained from the company
fraudulently as charged, is held by the
New York steam heating company,
of which Andrews is president and
which he is believed to control. In addi-
ton to this proceeding it is said
another action has been Instituted against
Andrews to recover block of the gas-light
company's preferred stock owned by An
drews, and for an accounting of certain
disbursements by him as president of the
company. In this suit it is charged that
Andrews has subordinated the interests
Of the gasllght company to those of
his steam heating company that unproduc-
tive properties of the steam heating COM
pany have been unloaded on the gaslighu
company, and that these and other
things Andrews was able to do
through dummy" directors in the
gaslight company, elected through
his influence. Mr.. j. A Bostwick, the new
president of the Standard gas company,
was seen at his home this morning, and
spoke very freely concerning the rumors
about Andrews and the affairs
OF the company in general. He
said: II have been connected
with the company from its beginning but
my vote was always in the minority
ings. Finally some of their notes Were
protested, and l was inundated by
persons who held the stock. To
protect myself and those who had
gone into the concern on account of my
name, l offered to assume all the
debts of the company until its
affairs could be Strengthened out
Andrews. whose schemes had far
outreached his capital, had made contracts
which he could not keep. As a result paid
out nearly half a million dollars in this city,
and much against my advice there was
s., 900, 600 worth of stock issued. 1t was given
to Messrs. Andrews, Spinola and Monheimer
g i .-%- I,.t
least half of this amount was held in trust
for the company's treasury. When the new
directors were elected it was discovered
that much Of this stock had been
sold for insufficient consideration
and that the rest was held
by the three mentioned persons or
their estates. 1t is absurd to say any of
where every share is and for how
much it was sold. There has
been nothing surreptitious about it.
We simply think these gentlemen sold the
stock for less than it was worth. This
stock in its present state is tainted and to
protect the public we have issued notice
closing our books for the transfer OF
this common stock. 1t. is possible
that Andrews might sell the shares,
when the buyer will suffer as much as our
selves. There is no question that Andrews
did have complete control OF both the gas
light and steam companies, but the
charge that he transferred useless real
estate from the steam company to
the gas company is not fair to
him. At the time he transferred
the property he unquestionably intended
putting up gas plant on it,
The board of directors of the Standard
met here today. The session was an
executive one. The secretary said
that some action had been taken
il reference to the trouble between ex-
President Andrews and the board. but re-
fused to suggest what action had been
taken. Ex-President Andrews was pres
ent, and when seen after the meeting
claimed that none but routine business had
been transacted