Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1895-04-11
ARGUING THE ADOICKS CASE.


The big legal hight against j. Edward
Addcks, the Boston gas king, which in
wolves millions Of dollars and in which 10
end Of Stockholders in the United States
are interested, was taken up before Judge
Wales in United States court Monday
morning.
This was the day set for the argument
on the motion made by Mr.. Addicks'
counsel to compel Thomas ii. Mcdonnell
of Boston, who has filed bill in equity in
the United state court for this district, to
be aud appear before the district Judge and
show cause why be should not give Sc
curity III the sum of S250,0oO or there
abouts, indemnifying the defendant conf
pany, q corporation of the State of Della.
ware, from any liability that might ensue
by reason of injustice done the defendant
in case it should suffer financial loss, and
in the event that the allegations in the
aflidavts asking for the appointment Of a
RECEIVER should no. be substantiated.
Mr.. Addicks was on hand with Fl. II
Ward, his counsel, when court Governed ut
~ o clock. and with him II, W.Whittridge
of New York the regular counsel for
Brown Bros & Co. OF that city, and also
attorney for the receivers of the Reading
railroad. Mr.. Whittridge is the man who
is responsible for the formation of the Bay
State Gas Co. OF Boston, Delaware and New
Jersey, and 1t was through Mr.. Whit
ridges skiful engineering that the
| famous gas companies were successfully
| organized. MIR. Whiltridge is said to rep
resent millions of capital in tins country
aud IN England.
lie was called by Mr.. Addicks and the
| proceedings opened with statement from
| Mr. Whittridge i'll regard 10 the atiidavits
| filed by Mr.. Mcdonnell, the applicant for
| receiver for the bay state Gas 20. He
| said there was absolutely nothing in tue
aforementioned atfidavits to show that
the company was insolyent or was in any
danger of goirg into liquidation. Then
Mr.. Adlicks handed Mr.. Whittridge a
| memorandum ON which there was some
data in regard to the financial standing Of
the company.
William Z. Spruance who, with Edward
G.. Bradford of Wilmington, and Board
man Hall of Boston Is counsel for Melon
nell and Mr.. Whittridge unhesitatingly
handed HIM the slip of paper. Mr. Ward
then appealing 10 Mr.. Spruance, asked
HIM to return the memorandum, which
tine latter refused to do, whereupon Mr.,
Ward appealed to the Court who requested
Mr. Spruauce 10 return ii.
This led Mr.. Spruance 10 state that there
must be dynamite in the memorandum,
aud then ensued considerable legal spar
ring as to the ownership of the modest
looking slip, which was beginning to play
an important part in the celebrated legal
|
argument for It's possession and in order
to save time Mr. Addlcks handed the
memorandum to him again.
The paper showed the condition of the
assets of the Delaware corporation, which
is said to have $50, 900 i'll bank, and instead
OF 81 10000 there is 81, 100000. There are
81 10000 of Brooklinc Gas CO. stocks
S5OO,00O Dorchester Gas Co.'S stocks
1000 Boston Gas Co.'s stock, SIOUl
Dorchester and certain contracts fO
Sl29,OO0. Against all this there is 500, O00
Mr.. Whittridge went on to say that ht
had found claim for S3OO.0U0 which til,
affidavit says is due MIR. AddIcks ant
which is not in existence at all.
Mr.. Whittridge also stated that there
was an obligation of sou, 900 to be met by
the Bay State GaS Co. OF Delaware th
week. He sal the application for the ap
polntmcnt of 4 receiver was II conspirac,
and that 1t was unjustilied ami unwar
ranted
Mr.. Bradford followed Mr.. Whiitridg,
in behalf Of Mcdonnell and gave somt
inside history OF the formation OF thu
famous gas trusts which have been ex
plotted in the daily papers. Among othe
things Mr.. Bradford read from Il memo
ranSum furnished by the commissioner o
corporations OF Massachusetts, in which
the latter attested to the cancellation of /
bond for 81, 100000 of the Bay State Ga
10 by the Mercantile Trust Co. OF New
York, thus cutting itself out of benefit
! derived from its revenue contracts. II
said the company had violated the trus
reposed in it, ....
Mr.. Bradford said that no mention wa
made by Mr.. AddiCEs' counsel in regard 4
. the $4,000 obligation which he now say
/. IS due and payable this week. MIR. Brad
ford said the motion made a week ago wa
for the release of 30, 0UU United Gas Bonds
| ~ iRh ura
. transferred to the Mercantile Trust Co. o
= New York to be applied to the liquidation
! of per cent OF the 50, 900 00O capital stool
! OF the Bay State Gas Co. Of Boston.
MI Spruancc opposed the motion of MI
Addicks' counsel 10 compel the applican
4 for receiver to give security in a larg
sum. and denounced in emphatic term
/. the procurement from the Delaware Legi.
!, latnre OF Il charter for the Peninsula In
7 vestment Co. He said 1t had a serpent in
I, side of 1t. II has doomed out into tn
q Bay state Gas Co. OF Delaware with mi
!, liens of dollars of capital.
p As an instance of the mismanagemen
!, OF the Bay State Gas Co., MIR. Bradfor
said 1t had ample income to pay its debts
. but took Sl2O.O0U of its principal 10 pay
. $4,000 obligation which should nave com
from income.
h Court adjourned until o'clock.
n The whole argument on the part {
counsel in the case of the Bay State Ga
/. Co. heard in United States Court Monda
Il afternoon. was the matter of compellin
II Thomas H. Mcdonnell, the applicant fC
n the receiver, 10 give security III the sum
j 50. 0oD for any loss that might be sstail
Is ed by reason Of the pending litigation.
! Messrs. Bradford and Spruance oppose
ar the motion to compel the entering
IL security and argued that there was "A tot
'e absence of evidence going to show tn
v any damage would result from the gran
4. ing of the restraining order.
~ Mr.. Ward declared that there were fall
i. allegations IN tile bill asking for the Il
puntment of receiver and held that Il
proceedings would be disastrous to the d
PENDANT company and that security shou
be given Cor u large amount. lie decin,
Of to give statement of what he suppOs
the damages would be.
te $. H. smith was appointed examiner
M | take testimony IN thp cnSn