Evening journal., 1896-11-12

APPOINTED - STILL CHASING
THE GAS MAGNATE-THE CASE
TO BE HEARD IN DECEMBER.
In United States Court yesterday af-
ternoon, j. n. Hoffecker, Jr., of this
city, and Benjamin L. Tower, of Boston,
counsel for Godfrey Morse, Of Boston,
and other holders of the income bonds
Of the Bay State Gas Company. were
granted rule requiring that company
to show cause why receivers should not
be appointed, and why a preliminary
injunction preventing the company
from doing business shall not be is
sued. The bill was granted and filed,
and made returnable on December Z.
The complainants are Godfrey Morse,
of Boston; Godfrey Morse and George
l.. Morse, executors of Leopold Morse.
deceased; Lawrence ]. Logan and Paul
X. Lincoln, of Boston, and the Boston
Loan Company, all of whom are income
bondholders and creditors of the Bay
State Gas Company. The bill of COM
plant alleges that Godfrey Morse has
two of the income bonds, each of the
par value of $1,000 that Godfrey Morse
have six; that Lawrence ]. Logan has
twenty-five; that Paul r. Lincoln has
i've, and that the Boston Loan Com
pany has twenty-five, all aggregating
100000.
The bill shows that the bonds of the
company are not due until May 1, 1889.
1t also reads that the company agreed
to pay to the bOndholders Z per cent.
interest per annum. the net earnings to
be applied first on the payment of the
interest. The income bonds amounted
to 100000 and were issued on May 1
1889.
Section of the bills says. Ever
since the incorporation of the defend
ant company, and until few days
since, J. Edward Addicks has been
president of that company and a direc-
tor therein, and by means of the large
amount of capital stock held by him
has had entire control Of its affairs,
and all its officers and directors have
been named by him and have acted
solely under his direction"
ADDICKs' BIG DEAL.
After the suit here of Buchanan and
the Bay State Gas Company, Addicks
resigned as president of the company,
and the Bay State Gas Company passed
into the hands of the Standard Oil
Company, knowing no doubt, that this
suit was to follow. The bill states that
in March, 1885, Addicks entered into an
agreement by which he was to pur-
chase and erect gas works in Boston.
Then, after securing or building these,
they were to be transferred to the Bay
State Gas Company, of Massachusetts
for S450,00O in cash and $4,000, 900 in an
obligation of that company, payable in
ninety-nine years or sooner, or at the
cOmpanys own option.
Later in March, 1885, Addicks trans
ferred all his rights in the obligation
to the Beacon Construction Company,
Of Pennsylvania, of which he was chair
man, and held 1880 shares of the COM
pany's capital stock out of a total of
$4,000 shares On August 13. 1889, the
Bay State Gas Company, of Delaware
transferred to the Beacon Construction
Company capital stock amounting to
/ SO 600 600 and bonds to the amount of
/ S2,000,000 in exchange for the obliga-
tion of $4,000 900 against the Bay State
/ Gas Company, of Massachusetts, and
that the Bay State Gas Company, of
Delaware, was thereafter holder of the
obligation until it was "unlawfully, IL
legally and without consideration
transferred back to the Massachusetts,
company and cancelled"
The bill continues: "The obligation
Of 81 800 900 was the principal assets Of
the Bay State Gas Company, of Della
ware, until it was deprived of it. The
transfer of the bond was accomplished
by alleged fraudulent and illegal acts
of ]. Edward Addicks, through the Bay
State Gas Company, Of New Jersey and
the Mercantile Trust Company, of New
York, to the Bay State Gas Company,
of Massachusetts, where it was can
celled without consideration to the Del
aware Company, and in this way the
Delaware corporation was deprived of
its principal assets and source Of in
come"
ADDICKS PULLS THE WIRE.
The Mercantile Trust Company, of
New York, in return for the cancella-
ton of the bond received 81 100000 OF
; the capital stock of the Bay State Gas
Company, of Massachusetts, after
which the Mercantile Company issued
additional United Boston Gas bonds tC
the amount of $3,30O,OOO to Addicks
ana he IN turn transferred them to the
Bay State Gas Company, of Delaware
Addicks claims that the Delaware com.
pany was indebted to him for certain
things and he appropriated to himself
a large number of the bonds. In 1S9.
the Delaware company caused build.
ings to be erected in Boston and pur.
= chased machinery, which were paid fol
by a portion of the bonds it received
r from the Mercantile Company. and il
e received nothing in return for this ex.
D penditure.
Mr. Addicks also asserts that tn,
e Delaware company has been deprived
g of all its assets and its sole source o
! income, and has been compelled t
make good the deficit on interest ans
5 charges of the United Boston gai
!. bonds, and by this has been compelle,
p to stop paying interest on its own in
, come bonds.
= The bill further continues:
: The Bay State Gas Company
1 through an agreement dated Angus
. 10, 1889. delivered to the Beacon Com
e pany. through Herman G. Mulock, it