Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1896-10-22

no Value as the company had no
assets other than the equity in the
capital stock OF the four Boston gas
companies. !" On April 9th, 1890,
Addicks "fraudulently caused an
agreement to be made between the
deiendant company and the Bay State
Gas Co., OF New Jersey" Under the
agreement the defendant company was
to pay such sums as should become due
from the New Jersey company to the
Mercantile Trust Co. in case the annual
dividends upon the capital stock of the
four Boston companies should be in
sufficient to puy the fixed charges in
respect OF the bonds issued by the Bay
State Gas Co. of New Jersey. Tho
complainant holds that for the year
ending June 30th, 1890, there was
deficiency of between 5000, 600 and
SlOO, 600 on the account of tho dividends
OF the Boston companies, which the
Defendants company, under the agree
Inent became bound to pay to the Mer-
cantilo Trust 20. OF New York. He
holds that the payments under the
agreement were illegal and fraudulent
dispositions of the assets Of the de-
fendant company.
He refers to the investigation in 1903
of the Bay State Gas Co. of Massa-
chusetts by committee of the Legis-
lature. He alleges that Addicks' claim
to be creditor of the defendant COM
pany is fictitious. "The complainant
further charges, upon information and
belief, that the defendant mas been
caused by said Addicks, to apply
substantial portion of said 81, 800, 600
OF bonds, or the proceeds thereof, to
tho settlement of IFS alleged indebted
ness to the said Addicks, said Addicks
being all tho time president and
director of the defendant corporation,
and in control OF it and its board of
directors The complainant charges
upon information and belief, that the
amounts 30 received by Addicks largely
against the defendant company"
"But for the fraudulent acts Of the
defendant, as induced by said Adj
dicks. the net earnings of
the company would have been sufficient
to pay interest equal to Z per cent upon
the income bonds of tho defendant
up TO and including the present time
and the defendant owes the COM
plainant, in respect to said income
bonds, such interest from April 1st,
alleges that the defendant company is
insovent and that 1.-THE defendant COM
pany will not, 80 long as it remains in
the control Of the said Adiicks, take
any steps to avoid the fraudulent con-
tracts. obligations and transfers here
inbefore mentioned, or tO recover back
any of its assets SO wasted and misap-
propriated as aforesaid. Unless re-
strained by this court the defendant
threatens ana intends to remove its
assets, bonds and papers into another
State and district. "
The complainant claims that more
than 50, GOO is due from the defendant
to him.
He prays that the court decree and
adiudge that the defendant was be-
fore the time of filing the bill and now
is, insolvent; that the company be
required to render an account; that
the defendant be ordered to pay the
complainant's claim and that of other
| income boDdholders, and that its re-
naming assets be divided among its
creditors; that receivers be appointed !;
| and that the company be restrained
| from disposing OF the property money,
&c and that preliminary injunction
issue restraining the company officers
and directors until the further order
of the court.
Attached to the bill of complaint
| were number of exhibits in regard to
allegations made in the bill. In con-
| nection with it were afiidavits of Fred
Joy, II. @. Tobey and Frederick E.
Snow of Boston. Mr.. Snow swears to
an examination of the returns of the
| Bay State Gas Co. of Massachusetts,
the Boston. Gas Light Co., the Rox-
bury Gas Light Go. and the South
Boston Gas Light Co., from which it
appears that the aggregate dividends
paid by the four companies upon their
capital stock for the year ending June
Both, 1890, was 1910, 200; for the year
ending June Both, 1882, 1912, GOO; 1893,
S371, $50; 1894, $500, 400 and for the
year ending June Both, 1885, $469, 800.
In those same years the Bay State Gas
Co. paid for interest the following re-.
spective amounts: 1890, 800, 422. l6 !;
1891, 1923, 1914. TS; 1892, S432, 600; 1893,
S392, 1856. "A; 1884, SlS6 33, and 1895,
siGG 0S. Mr.. Snow gives details as to the
par value OF the stock Of tho gas COM
panies, the number of shares and other
particulars. j. Edward Addicks was
president Of the Bay State Gas Co. OF
Massachusetts in 1893 and 1896. His
name and that of Il. p. Addicks and
W. Z. Il. Dillaway appear in the COM
pany's returns. They were also con-
nected with the Mercantile Trust Co.
of New York which was the owner Of
stock of the Roxbury and South Boston
companies.
After the receivers for the Bay State
Gas Co. OF Delaware bonded on Frida,
afternoon, one of them, j. Augustus
McCaulley OF this city, accompanied
by ex-senator Higgins Of this city, f,
E. Snow of Boston and Roger Foster
OF New York, counsel for William
Buchanan, at whose instance the actor
had been taken, went to the office o.
the company, in the third story of thu
building at the northeast corner O
Fifth and Shipley streets, and tool
possession of the effects of the com
pany which were found there. Moth
ing of value was found except two
desks, four chairs and a hat rack. Mr..
McCaulley demanded the keys OF roll
top desk from Charles II. Kittingei
and Charles II. Graf, who were in thu
Office, and when the keys were not giver
up MIR. McCauliey had the desk opened
The desk contained no papers belong
ing to the company. and after al
examination had been made the office
was closed by Mr.. McCaulley, who
now has the key.
Mr.. McCaulley, when seen Saturda,
| morning by u reporter OF The Gazette
i stated that there is nothing els