Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1895-04-04
sIso, 600 noNDs Released
OF the Bay State Gas Co. of Delaware Al
Collateral Deposited With the Meruan'
tito Trust, New York.

OF the Bay State Gas Co. of Delaware as
Collateral Deposited with the Meruan-
tile Trust, New York.
J, Edward Addicks, accompanied by bis |
counsel, II. II. Ward, went before Judge |
Wales in the United States court Monday |
afternoon andsecured the release of $40, 900 |
bonds of the Bay State Gas Co. OF Della |
ware, to be deposited rs collateral with the |
Mercantile Trust Co of New York, accord
ing to an agreement with the trust COM
pany which the Delaware corporation is
bound to carry out. lnasmuch as re-
straining order was issued by the United
States court preventing Mr.. Addicks from
disposing of any of the property of the
Bay State Gas Co., ii was necessary toget
release from the court before the securities
could be applied to the use for which the
Mercantile Trust Co. wants them.
In his application for the release OF the
aforesaid bonds Mr.. Ward read from the
deed of trust of the Bay State Gas Co. of
Boston, going to show that the future OF
the company depended upon the release OF
these bonds in order that the company
might carry out the contract entered into
in good faith.
Mr.. Ward in his statement Of the case
said the bay State Gas Co. of Boston was q
corporation of the State of Massachusetts
with capital of S9,0O0,G0o, with branches
in New Jersey and Delaware. Under the
deed of trust the managers were bound to
redeem every year per cent of the entire
capital stock of the company or \ sum
equal to $4,000 year. 1t devolved upon
| the Bay State Gas Co. of New Jersey to
carry out this redemption, but rs there is a
deficit and in view Of the fact that the
Delaware company has guaranteed the
payment Of the $4,000 in case the other
company def9ulted in payment, the liqui-
dation falls upon the Bay State Gus Co. OF
Delaware.
The Mercantile Trust Co. of New York
acting rs agent for the gas companies Is
authorized to buy on the market and re-
deetn $4,000 each year of the Bay state
Gas Co.'s bonds, and rs security for the
purchase OF the bonds il asks the Della.
ware company to deposit with it collateral
to the amount of $4,000 or the face value
of the bonds purchased on the market
The bonds are now selling at SIS. which Is
below par, and it will take. 10000 of said
bonds % make up the required 5000
Mr. Ward stated that in 1898 u tripartitt
agreement was entered into between
) Addieks, w. l., Dillaway and the Mcrcan
tile Trust Co., as trustees. Soon after III,
! execution of this agreement the Bay Stat
Gas Co. assumed the liabilities of the New
Jersey company, and the $4,000 or the
per cent Of the capital stock OF the l5a,
State Gas Co. Of Massachusetts had to COM
from the Delaware company according Il
its agreement in case the New Jersey com
pany defauted.
: The deed of trust sets forth that when
Q comes time for the Mercantile Trust Co
to buy the bonds OF the market value am
make safe OF the securities on May Isl
i, the Mercantile Trust Co.. must adyertis
the bonds at least one month before til
: sale is to take place in New York, Bosto
and London. The only available seCur
la l..l. l. !.
, present time are the 10000 bonds the II
lease of which was asked for by Mr.. War
in order that they might be turned over t
: the Mercantile Trust Co, and thus say
/, the Delaware company from defaulting /
J. its contract which, Mr.. Ward said, woul
Q plunge 1t into inevitable financial ruin.
Il William q. Spruanfe and Il. q. BraC
ford represent I. ii. Mcdonnell. Ill
stockhOlder who asks for the receiver. NJ
g Bradford was in Dover when tho cas-
came up at O'Clock Monday afternool
Mr. Spruance. who was only recent
y taken into the case, asked the court
j. postpone the matter until the arrival ,
n Mr.. Bradford. Court declined 10 do tn
~ and Judge Wales said he would relea
= the bonds. The Court said the action WI
only the beginning OF what was going
be long litigation, 1t was only fair
said, that the release should be made, al
q in SO doing he was placing confidence
:. the affidavit Of the person making the a
plication. Ii IL was shown that the facts
the affidavit were false, it would so all u
al harder with the applicant when the ca
u CAME up for argument.
P, Soon after o'clock Mr.. Bradford can
s. intothe court room ard after he had learn
ne what had taken place he asked for
lr affidavit from Mr.. Addicks setting for
Il the fact that none Of the Boston gus bon
us had been loaned or pledged. The aiiida
p was then drawn up by Mr.. Bradford a
., Mr.. Addicks signed it.
- ON this first day Of April AID. 1895, persona
W came before 5. liUlmond Smith, United sta
m commissioner for the District Of delaware,
Edwerd AddickS, vino being duly sworn acro
IN Ing to law, doth depUse ugd say rs follow
40 That mel her the l,3nl 1000 Of Boston Gas non
y mentioned in tho bill hul In the above
e, Tilted cause, nor any part thereof, were o.
sit or are now pledged or deposited in any IN
by ner whatever Us special trust fund
"a security tor the prOtec ion VI the holders OF
m Income bonds Of thn Hay Stlte tias o.,
Ia Hbove-namod defendant, or Of any Of =
- holders j. EDWARD ApDICK'
Il. Judge Wales issued an order compelli
il Mr.. Mcdonnell to be present and sh
". cause why he should not enter into secur
IN to meet any damages which might ocI
to the defendant company by reason
the charges made against sad compa
turning out TO be false and unbound
w Judge Wales then adjourned the case III