Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1893-12-21


Df financiering by the Bay State Gas |
Company, the notorious $4,50000O |
note given to the Beacon Construction |
Company has been nominally cancelled, |
in accordance with the provisions of the
Lyford act.
The news was given out yesterday
afternoon by Mr.. J. Edward Addicks in
Ihe form of the following bulletin from
The Boston News Bureau:
"At meeting of the Bay State Gas
Company directors, held at "a West
street, December Sth, Mr.. J. Edward
Addicks reported to the board that the
famous $4,500o0 note had been legally
cancelled by the Mercantile Trust Com
pany, to whom it had been transferred,
Ind by whom it was cancelled and de.
posted in the office Of the commissioner
of corporations of the commonwealth of
Massachusetts,, thus complying in good
faith with the provisions of the Lyford
bill.
AT meeting OF the stockholders of
the Bay State Gas Company, held No
vember 2Tth, the capital of the Bay
State Gas Company of Massachusetts
was increased to $2,000,000, in accor-
dance with the return of the commits
sioners appointed under the Lyford act.
The additional $1,500,000 of stock was
Issued to the Mercantile Trust Company,
trustee, to be held by them in trust as
additional security for the first and
second bonds.
Formerly nine-tenths of the earnings
of the Bay State Gas Company were
paid direct to the Bay State of Delaware
rs dividends on the $4,500,000 note;
now the entire earnings Of the Bay
State Gas Company are paid to the
Mercantile Trust Company, trustee.
This very largely increases the security
of the first and second bonds.
"Upon inquiry Of Mr.. Addicks as to
how the Mercantile Trust Company be-
came possessed of the $4,500,000 note,
which until recently was the property
of the Bay State Gas Company of Della
ware, he authorizes us to state that the
Bay State Gas Company of Delaware in
the month of November
SOLD THE $4,500,000 NOTE
to the Bay State Gas Company of New
Jersey for the sum Of $1,300,000 of
Boston United Gas bonds, LIST series IS,
which have been issued and paid over
to the Bay State Gas Company of Della
ware. The $4,500000 note was then,
pany of New Jersey, transferred to the
Mercantile Trust Company as trustee.
"There have also been issued 100000
Boston United Gas bonds, 1st series 5s,
for betterments, which bonds are also
in possession of the Bay State Gas
Company of Delaware.
"Mr. Addicks states that during the
last four years there have been spent in
repairs and improvements upon the gas
companies in the Bay State combination
about 81 100000. OF this 100000
has been charged to operating expenses
and 100000 is betterments and entitled
10 the issue of bonds, as stated above
The bonds for betterments have been
Issued after examination land upon Ger.
tficate from Mr.. William H. Bradley
chief engineer of the Consolidated Gas
Company of New York, upon receipt
of whose certificate Messrs. Brown Bros
& Company of New York, certified tc
the Mercantile Trust Company Of New
York that, in their judgement, additions
value had been placed upon the ga
properties which would justify the issu,
of 100000 first bonds.
"Mr. Addicks states that some of thesl
100000 bonds, $435, 900 were issued
year ago, but not listed, and $685.
have just been delivered.
at is the intention of the company Il
Immediately list this additional amount
4 both in New York aud Boston. Tn
entire sum is still held by the compan,
with the exception of about $4,000.
"Mr. Addicks states that the $1,000
900 bonds issued to purchase th
$4,500,000 note are, by agreement, wit
Messrs. Brown Bros. 81 Co., to be place
in the safe deposit box of the company
which box is not to be opened except
ing upon the presentation by two off
GERS OF certified copy Of resolutio
voted for by every member of the boar
of directors of the Bay State Gas Com
pany of Delaware and
THEY WILL NOT BE LISTED
"This makes a total of $4,000 900 c
first bonds added to the issue of $1,000
600 which were sold in London fou
years ago to pay for the purchase of til
Boston Gaslight Company. No MOI
first bonds can be issued except by IL
deposit of stocks of various gas con
panies contiguous to Boston, which a.
still out of the Bay State gas combin
ton at prices fixed in the deed of trus
which prices are less than two-thirds
the present selling value of the stocks
question.
1--WE unerstand that Nessrs. Brow
Bros. & Co. of New York are strongl
of opinion that the first bonds are vel
much benefited by the concentration
all the earnings of the Bay State Gas Cor
pany of Massachusetts in the hands
the Mercantile Trust Company, the a
ditionai earnings being $l50,000 at
per cent dividend upon the $4,000
Bay State stock deposited in place
the $4,500,000 note cancelled. Out of u
but 900 has to he paid as intere
upon the $1,300,000 first bonds issued
secure this result.
"The net result to the Bay State G
Company of Delaware can be stat
thus:
"one note, $4,000 900, cancelled.
"Held in the treasury OF the compar
$1,950,000 Boston United Gas bon,
first series IS, as q reserve, $1,000
of which will be listed and $4,000
will not be listed, and will be locked
unused
THE only floating debt of the b
State Gas Company of Delaware is
portion of the purchase money of /
capital stock of the Dorchester Gasllg
Company, which cost less than $4,000
The company, if SO disposed, could pr
tically offer to the income bondhold
first bonds dollar for dollar. AS m
ter Of fact, the company has large
serve for the first time in Its history,
vested in its own first bonds, which
is believed, will soon see much higl
quotations.
"The sinking fund commences ur
L.. = 80 q 4.