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

.. Edward Addicks. in which IL is asserted
that the latter commenced gas operations
in Massachusetts, nine years ago by cor.
rupting members of the Legislature and
the Boston aldermen, whereby he obtained
the needed franchises.
In 1891, on Decent Der 9th, there was or
ganiZed in Boston under the general laws
of the commonwealth a company called
the Bay State Gas Co. with capital of
$500,01O. Except the shares necessary for
organization j. Edward Lddicks was the
sole holder Of the stock. There were then
in existence several companies which sup
piled Illuminating gas to the public-the
Boston Gas Light Co., the Dorchester Gas
Co., the Roxbury Gas Co. and the South
Boston Co. Each of these local concerns
was carefully managed. aud the stock was
regarded rs among the gilt-edged securi-
ties of State street.
Addicks appeared on the scene quietly
but effectively. On February 9th, 1855, the
Board of Aldermen of the city of Boston
passed an order granting permission to
the new company, the Bay State, to lay its
pipes through the streets of the city. The
franchise it has been openly claimed in
Boston, was procured by the bribery of
enough aldermen to carry the measure
through the board. Addicks furnished
the means by which the bribery was per-
petrated On March 18th, 81 days after
obtaining this franchise, Addicks made a
contract with himself to build gas works
and lay pipes. The Bay State Gas Co., of
which Addicks was the president and
almost exclusive owner, agreed with Adj
dicks. us a contractor. to pay Addicks
$3.50, 900 cash and 81, 800, 900 in promise
or obligation payable in 90 years, bearing
interest, which was to be equal to % per
cent of the net earnings OF the Bay State
Gas Co. Eight days after this tlamboyant
contract was signed this same j. Edward
Addicks formed limited liability COM
pany under the laws of Pennsylvania,
with capital of 81, 800, 900, said partner
ship being called the Beacon Construction
Co., Limited. In making up schedule of
| assets Addicks put forth the contract
which he had made with himself, under
| the name of the Bay State Gas Co., put in
| at valuation of 81, 49S.O0O. Only 5000
| in cash was paid in. Cash or credit was
obtained from which the actual construc.
ton of works for the Bay State Gas Co. Of
| Massachusetts was begun.
| There was also a Bay State Gas Co. of
| New Jersey formed, and also the Peninsula
Investment Co. of Delaware formed by
| Addicks, hut this storyswill be too com pill
| Gated to go Into details of them. The
| Peninsula Investment Co., INN ediately
after organization, changed its name to
| the Bay State Gas Co. of Delaware. The
| bay State Gas Co. of New Jersey and the
Beacon Construction Co., Limited, were
4
| purpose and are now things of the past.
| The plant which Addicks actually built in
| Boston was located at Harbor Point, and
| there were constructed works to manufaC-
ture gas, and 10 miles of large mains were
| laid. The total amount of the expendi
ture was $S00,000 A few additions to the
piping were made, not sufficient to raise
the cost TO SS50,O00 According to the con-
tract made by the Boston Gas Light Co.
(Addicks owner) with the Beacon Con-
struction Co. (Addicks owner the sum of
| $500, 900 in cash and note were paid to
the latter company for building the works
and laying 100 miles of mains.
Thus il was that Addicks at the head of
one company practically swindled himself
as president of another concern out Of
about S40O0,O00. The plant put in was
of the cheapest and poorest material. 1t
was put there merely to force the estab-
lished gas companies of Boston to sell out
| to Addicks. Sufficient to mention that the
scheme was successful, the local companies
were induced to join the Boston Gas Syndi-
cate, as new creation of Addicks was
called, and the gas man became the auto
crat of gas over Boston.
4 man of the name of George A. Smith,
at one time purchasing agent for the
public schools of Boston, was Addlcks
legislative agent. Smith was we'll inform.
ed as to the ways and means by which the
original charter of the Bay State Gas
Light Co. was obtained from the Board oil
Aldermen. He became associated with
Addicks when the latter first raided Bos-
ton, and during the years of legislation
and attempt at legislation he was Addicks
trusted lieutenant.
When Smith commenced work for Ad-
dicks in 1884 certain interests in stock and
bonds were promised him, Smith did the
dirty work about the Legislature, ami it Is
agreed by certain responsible persons in
Boston who know the particulars that tue
work was done well. Smith discovered AT
length that concern who will furnish the
means to bride legislators will generally
bear watching. The crisis between Adj
dicks and smith came in the autumn of
1888, when the final break occurred. Smith
hau obtained private receipts from the
corrupted officials and these he held III
terrorem over Addicks' head. But the
latter was not scared bit, and he had
, counsel, Parker Chandler. who was about
us quick -wlttud and rs hard to be scared
US the great gas man himself. Smith was
advised by the brilliant Boston lawyer
Melville U. Adams, to squeal and reveal
everything. to turn States evidence against
Addcks. Smiths claim was over $4,000
for services rendered.
There were meetings between the great
lawyers. When Adams would talk with
J him aboIt the damaging nature Of the
, whole business to all concerned, Chandler,
with the tiff old buffer, Addicks. behind
/ him, would retalate that Smith did not
! dare to give the thing away. Go ahead
and let il out, y was the sense of Chandler
retort. Some of the paper Smith claimed
] to hold were Endorsed checks, but most vi
2 them were i'll the nature of receipts
directly acknowledging money received by
Q members of the legislature. some more
particularly designated the purpose fol
=. which the money was received, viz, thu
Q | purchase of a vote. One even stated, "Fol
services OH committee" Others state
Received so much, for which | agree Il
| vote as requested OH gas measures" Others
: pretended to be for different purposes OF
purposes not expressed, as, for instance
: Received so much, which | agree TO re
i turn ii the goods are not delivered" Also
: "Received so much on real estate trans
/. actions" 1t was finally arranged in thu
;. early summer of 1891 that an adjustment
!, OF all pending questions between Addck
+ and Smith should be left to the arbitration
: of Frederick 7. Addicks, ]. Edwart
Addicks brother. But it was condition
, precedent to this negotiation that these in
!, eliminating documents should be delivere
y over for destruction prior TO any adjust
= ment A settlement was made througl
!, the influence of Il. Z. Fitz the millionair
u president of the Blackston National Bank
y who had been beneficiary of Addicks t,
- the extent of 500 month on account o
!, certain aid 30 the millionaire.
q The settlement was ON the basis of one
n half. Smith found himself forced to az
:, cept. Even then Addicks got ahead Q
n him for the stocks are not now worth ont
- third their face value and Mr.. Smith
crazy with rage. Smith claims he worke
"A for Addicks in this State.
"a In March. 1898. n committee of the Ma'
sachusetts Legislature had Il hearing o
charges brought on the subject of the not