Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-11-25
SHADY SHARE TRADES.
Bad Charges Against a Corporation
President, Now Resigned.
TWO COMPANIES ARE MIXED UP.
MI. Andrews Accused of Running One for
the others Benefit.
LITIGATION FOR s3OO0,OOO TO ENSUE

NEW YORK, Nov. 24.-Wallace c. An
drews, President of the New York Steam
Company, and until lately President of the
Standard Gas Light Company, is ikelyto be
involved in lawsuit with the latter COM
pany as to the validity of certain stock
amounting to about $1,000, 900, which it is
alleged Mr. Andrews obtained illegally
from the company while he was its Pres
ident.
Mr. Andrews resigned the Presidency of
the Standard Gas Light Company two or
three weeks ago. and J. A. Bostwick was
elected in his stead. IT is said that had not
Mr.. Andrews resigned when he did he
would have been expelled from that Office
bv vote OF the directors. Immediately after
the resignation of Mr.. Andrews and the
election of Mr.. Bostwick an injunction was
issued Oh the application of the company to
restrain Mr. Andrews from selling or other
wise disposing of certain of the company's
stock then in his possession. The company
also issued the following 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 order OF the board.
The Charge Against Andrews.
1t is charged that 81, 600, 600 of the s., ,000.-
600 of the Gas Light Company's stock
which Mr. Andrews obtained from the
company fraudulently, as charged, is held
by the New York Steam Company, of which
Mr.. Andrews is President, and which he is
1 Il
proceeding, it is said another action has
been instituted against Mr. Andrews to re-
cover a block of the Gas Light Company's
preferred stock owned by Mr.. Andrews, and
for an accounting of certain disbursements
by him as President of the company.
In this suit it is charged that Mr.. An
drews has subordinst I'd the interests of the
Gas Light Company to those of his Steam
Heating Company; that many of the poor
investments of the latter have been charged
10 the former; that the unproductive prop
critics of the Steam Heating Company have
been unloaded on the Gas Light Company,
and that these and other things Mr.. Andrews
was able TO do through the dummy" direc-
tors in the Gas Lis ght Company elected
through his influence.
j. A. Bostwick, the new President OF the
Standard Gas Light Company, was seen at
his home this morning, and spoke very
freely He said: 81 have been connected
with the company from its beginning but
nv vote was alwsys in the minority, and
gave up attending the directors meetings.
Finally some of their notes were protested.
Offered to Pay the Company Debts.
"To protect myself and those who had
gone into the concern on account of my
name / offered to assume all debts of the
company until its affairs could be straight
ened out.
''Mr. Andrews, whose schemes had far
outreached his capital, had made contracts
which he could not keep. AS a result paid
out nearly s5OO,OOO in 80 days. Much
against nv advice, there was IS 600, 600
worth of stock issued, which was given to
Andrews and others for distribution. I
had supposed that at 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 has been sold for insufficient compen-
sation, and that the rest was held by three
persons or their estates.
at is absurd to say that any of this stock
is unaccounted for. We know 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 much less than it was worth.
This stock, in its present state, is tainted,
and to protect the public we have issued
the notice closing our books for the transfer
of this common stock.
Protecting Prospective Stock Purchasers.
1t is possible that Mr.. Andrews or any of
the others might sell the shares, when the
buyer would suffer as much as ourselves.
There is no question that Mr. Andrews had
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 put
ting up gas plants on it. -
The Board of Directors of the Standard
Gas Light Company met here to-day. The
Secretary said some action had been taken
relative TO the trouble between ex-PresidenS
Andrews and the board. but refused to say
what it was. Ex-President Andrews
was present, and when seen after
the meeting, he claimed that none but
routine business had been transacted.