New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-11-25
Trouble OVER GAS STOCK.
ro,pGEs AGAINST WALLACE c. ANDREWS.
ur FORMER PRESIDENT OF THE STANDARD

" :, favor cf J. A. Bostwick, the former president
=. rcasurer OF the company. II came out yesterday,
s '..r,r that Immediately after the election OF Mr.
nn,ct who Is the president of the New-York and
- rDrIsnd Railroad Company, the gas company
,,ed an injunction from Judge McAdam In the
r.r,or Court restraining Mr.. Andrews from selling
:. fssposng in any way Of a certain amount OF the
~,a,v,s stock which was then In his possession.
charged that Mr.. Andrews illegally obtained,
,r. AZ was president common stock of the company
..~ntine to 100000. The following notice was
-, nv the company on November IL
a.s,ou having arisen as to the validity Of certain
~ stock OF this company. the Board OF Directors
~s have this day voted to close the books for The
-, az common stock pending examination and un.
" ,,s further order OF the Board.
]. A. BOSTwICK. President.
rrpDINAND McKEIGE. Secretary.
- a. said that 81 OO0,000 OF the 80 900 900 Of the
~ which it is charged Mr. Andrews got from the
'.,nany * held by the New-lork steam Company,
s,sh Mr. Andrews is said 10 control. II Mr.. An
,r. had rot resigned when he did. the directors Of
~ -. .o,nparv would have forced him to step out of
s. The Injunction is preliminary step in the
s,s a, two suits against Mr. Andrews one to recover
n 100000 of common Stock and tire other to get back
hocS a; preferred stock owned by the former presi
.,t and 10 obtain accounting Of certain disburse
--..,. made bv him wrie he was in Office. IN the
,,st slilt
.,s,-< Of the two companies of which he was pred-
An, TO the hurt of the gas company. II is said that
- h,d made the standard Gas Light Company bear the
x,.n NJ the poor investments of the steam company.
- tbat be was enabled to DO this through several
asummys directors in the gas company. In the ac-
an, n is declared that when the companys stock was
,.s,ed to Mr. Andrews. five years ago. the same men
ho formed majority in the Board of Directors OF the
,,s company were also majority in the steam com
- and that Mr. Andrews managed TO have several
reks in the steam company made directors of the gas
,oruany so that he could further his objects.
n further said that Mr. Andrews obtained control
=, s5OOO,OO0 Of the gas cOmpany's common stock
" means o, the dummy directors and that the late
es,.-sI F. B. spnola received 81 100000 Of it from
", Andrews for obtaining a charter for the company
~ that the late : A. MOnheimer got the same
nnunt for his services in getting many patents and
erressons for the company. The rest OF the STOCK
v.ith Mr. Andrews empowered to sell Is large
ma, Of that which the company wants TO recover
M iormer president SAYS that he has only Sl5ooooO
A. ne stock and offers TO return this TO the company
fine suits against him are Withdrawn. The gas com
,nr directors think that Mr. Andrews has more than
n. 100000 of stock and say they can show that II
~ has sold some Of it he has never made an account
Inc TO the company.
Az thr financial condition Of the company had SINK
,her low last spring Mr. Andrews found it necessary
10 remove some Of the dummy directors and TO I'LL their
plces with rich Therefore at the annual meeting
b.ls IN MAY last Ferdinand McKeige, John T. Terry
Charles Dana. D. H. McAlpin and Frank Tilford were
elected The first three took the places OF Lewis tooh
H. p Brookman and Onesimus p. Shatfer The last
two filed e vacancies in the board made by the
deaths Of oeneral F. B. Spinola and William c.
schenck Nj McKeige, who was formerly secretary
Of the company is now both secretary and treasurer
Mr. ShaHer was treasurer before the election. The
following members Of the old board were reelected
Wallace C. Andrews j. A. Bostwick, II. II. Brockway
and Russell sage.
1t is alleged that the new members Of the board
consented to become directors Mr. Andrewss state
ments as to It's good financial condition. committee
Of the Board OF Directors has been at work for six
weeks investigating Mr.. Andrews's actions.
1t is said that in their Investigations the new d-
rectos found that number of parcels of the steam
co1psny's real estate had been unloaded on the gas
company in the form of leases for long term OF
yesrs, and at much more than their rental value.
The gas company under these leases. had TO pay
si375O annually for lands that below Canalst
The company has mains south of Fourteenth-st.
A meeting Of the directors OF the gas company was
ssh yesterday afternoon at the Offices of the com
any's lawyers, VanderpOel. Cunning q GOODWIN, NO
Wall-st to try TO settle the difficulty. All the d
rctors were present except Mr.. Brockway. The
ned upon and the meeting adjourned until Friday al
D. M, when the directors will meet at No Cort-
and-st the main Office OF the company.
Mr.. Andrews said, in statement 10 the newspa-
DeFs that the story had been originated with Mr.
NeKeire the secretary, and that he held large
mount of the stock, which he had inherited from the
state Of General Spinola. Mr. McKeige denied these
statements yesterday. This is part Of Mr. AndrewS's
statement of the trouble
fsfA fhera
whatever. The company has now 81 100000 OF pre-
ered stock in treasury which has never been issued
The common stock issued for values and received
my proportion. As 10 its lesality acted upon the ad
vice OF COUNSEL did anything except what was
sanctioned ly my lawyers There two lawyers con-
c,racd in the organization OF the company. Everett +
Wheeler and James W. Ny associates had thei
own attorneys and acted upon their advice There Ger
ny never was any intended be perpetraed no
anything done but what strictly legal The case
courts and whether not there was any more
stock than strictly legal Will be adJn
sicsed and determined. II the company anything
IN the way OF common stock anything else, will GER
tInly lay it. l entirely responsible.
There vas no secret about the issue OF the common
stok It offered originally upon options Of two years
81 80 any with common sense Knew
rat II issued par value.
In the promotion enterprises IL is usual whether
In railroads gas companies, for the promoters who
sssumc al responsibility and risks OF developing ne"
Enterprise besides putting up large amounts OF capit 10
make proht The company in three years, has isd
leo nile, street mains and IL earning per cent on all
Outstanding preferred There is also surplus
teunu sting which will accumulate much more rapioV
Ron this and will be applicable TO dividends OIL ts
esumon stock and as the common stock SOFA Ut very
sE prices / think the holders afford 10 walt little
VILE for dividends want IL distinctly understood that
whatever my position in the matter may be es ultimately
determined by the courts, all the innocent hoIdr' OF
tornon stock sre thoroughly projected. am advised
BY the best legal authority that there is no question about
Ms As TO the preferred stock there Is no question
sfo It's entire validity ana its consequent Naiue
- 10 the relations between the NewNork steam COM
shy aac the gas company, it can be proved that they
were all favorable the gar company The leases OF
ies estate very low and the contract 70 supply
ssm for 100 years % per cent OF the usual rates
Af Andrews is a Western man who came 10 ths
ciy several years ago, and Is well known III wall
street lie was director Of the American Loan and
nus Company, which failed several months ago.
hs is also director of the Bank of the Republic
ms officers Of the bank refused 10 say YESTERDAY
NAe'1er the bank held any OF the gas company s'och
cf-lt fopl In Andrews.