The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1896-10-22
BAY STATE =
- GAS COMPANY
Argument For The Dismissal Of
III, Receivers.
ss'THE c.NgsN?T OF COURT.
Proceedings Continued Until the
Arguments in the Receiver
Case is Concluded.

y
continued his argument. If the bond had
remained out the Bay State Gas Company
of Mass, would have been ruined. The
Delaware Company was under obligations
! to the Mercantile Trust Company. 1t was
therefore immaterial to Mr.. Buchanan
what became of the bond
The transaction benefited the complain.
ant because If the bond had not been can
celled, the affairs Of the company would
have been wound up and the assets would
without franchise, be worthless, The
Delaware Company will own the Boston
Companies before 20 years and Mr. Buch
anan will be benefited by that action.
Nearly four years have elapsed since the
bond was cancelled and Buchanan kne
all about it. Hencver saw Addicks before
this occasion.
He represented large stockholders. In
what particular has Addicks acted dis
honestly and committed fraudy
Mr. Higgins stated that evidence would
have to be secured from New York and
Boston.
Mr. Foster believed 1t would take week
to secure Mr. Buchanan Of New York and
Attorney Snow of Boston. At the outset
he wished to discaim the allegations pub
lished in the papers,
We paid sl(O,O0O in cold cash for Our
stock, and the original fraud is that the
proceeds of $40, O5O, 900 of bonds went to J.
EuWuru AuuithS anu MS uttbEHty. W.
are creditors by having IA len on tho stock
Where are the sl,5OD,WO of securities that
the company held in March, 1893? There
is now only $40, 90 in the treasury Of the
company.
insolvency, misconduct, waste OF assets
and fraud by the officers, the taking of
bonds below par value, wcro the grounds
upon which they asked for receiver of
the Bay State Gas Company.
IT UnE z Ihn'rlprl; when Mr. FbStrr -
cluded his argument and Mr.. Higgins be-
gan argument and continued until the al
journmcnt OF court.
MORNING Session.
When the United States Court convened
this morning Mr.. Foster stared the will
ingness of the complainant to drop the
contempt of court proceedings provided
the ST., 900 in bank was transferred to the
receivers together with tho books and
papers this afternoon.
Mr.. Carter was not III court for the pur.
pose of making or accepting propositions
he was there for the purpose Of arguing
the motion.
Tho court ruled that the argument on
motion for the dismissal Of the receiver
would be heard first and then the CON
tempt of court proceedings
The alleged charges against Adiicks Is
that he hid In the Hoffman House, that
Kittinger boosted he had removed the fur.
niture and TINT Attorney Parker G.
Chandler stated hat the application for II
receiver was simply political move made
by Higgins. The company WAS never in
better financial condition 1t doc not
owe a dollar and has money in the trenS-
ury. 1t had made arrangements to enter
into transactions Cd November !, by which
it would have cleared $lOOlOO0. 1t had
also arranged to pay ont n large sum Of
money. The rCcCivrrahtp puts an end to
both these plans
Mr. Higgins then resumed thrurgumcnt
and went over the sam" ground rravrrsHi
by Mr.. Foster and at times became twist
cd by the queries Of M Carter He claim
ed that the bond Of $i,6DLOUO WAS trans
ferred to the Mercantile Trust Company
for the consideration Of Il, and the bond
'~--Was cancelled for $l,5D,UOD of stock bonds.
The history Of The steps leading to the
appointment of a receiver is this: Mr..
Higgins, as Delaware is "A close State
politically, came to New York some time
ago and made three propositions to the
National Republican, Committee, He said
if any one Of them was accepted the State
would go II Republican,
The three propositions wClr:
First--Put Addirks in iail
Second~RIin him financially.
Third-Givr lli& gins enough money t.
beat AddiCks.
ply with any Of these demands. Thet
Higgins went to Boston and worked upon
ZONE Of the brokers and stockholders there
The financial part Of the scheme was that
they should sell the stock short and they
have u receiver appointed on an e&pnrtt
statement. This WAS done 1t can hl
proved that DR.. Wright BrnmAn, the BJ1
ton receiver sold the sock short.
Then Higgins went to Judge Wales
warm personal friend Of his, aud Hskrt
for the receiver. The Judge granted his
demand.
The Delaware company was loadcd up
with obligations without consideration
and therefore fraud Is Justly claimed ~
MIR Buchanan. The bond was on ont
hand and e0s bonds on the ether hand bU
The latter was not a. convenient MS cash
aud Addiclia, aud piNaway proitted 10y
the sale
He claimed the Bay state Gas Comrnn,
was insulvcnt On account Of mi,Wnlugc
ment and fraud
Ii the conclusion Ot his Argument hI
said that there were no book. At the Ollie
in this city and no property except Il desk
four chairs and il hHtrAGk. We CtunO
find the books and nothing is ais closed IL
the atliduvIts. Everything is wasted an
lost and everything cOnrrNlgd. lie uiGel
ed the atlldavt5 i'll the Mcdonnell hcll
ing
VI
TDp,rs In reviewing the case he said tia
M buchanan had reviewed he aifhil
of the company before It was established
Tho Bay State ius Company Of Dulnwar
was entitled by its charter To transact II
own business
~ His argument in reply to that made /
Messrs Foster and Higgins, WIS All II
teus,ing and able one during which !
floored his opponent whrnthGy iutgrrupte
him with questions and finally pro luC,
proof If his statements by the paper
which e complainant had filed.
He dld not lr,cyc that III" receivers a
pointed could trry On the business with
much sucCe IS as under its present mai
agement. In answer to Mr.. Higgins
said that assets are for paying debts bGIO
ono dollar goes TO tho complainant.
The revenues Of the company have /
creased IS ~ 900 in the present year VIII,
the Court reviews tho case Mr. Carter It
that it would be found I" be the same ca
as that which WAS before the court
March 1855
When he is going from state to state
Get books and papers to accomplish son
other thing he felt sure that there WI
come other cause for the immediate +
Ownership other than that on tine face
the complaint eof buchanan, There L
been already fall OF 10 points ON the
Come bonds and if the receiver contnu
" means that the company 5 interests W
beruined
placed In the bands Of his firm upon
vsstigation he believed frauds had be
committed and the bill was brouG
upon that ground alone.
Mr.. Higgins and Nh Foster want
time to reply to atltdayit5 and to
bther6.
MIR. Cartor did not believe that the
Ce,ecrs should continue during any de-