Evening journal., 1896-10-21
WAR AGAINST ADDICKS.
Testimony Heard by Judge
Wales in United States Court.
HIGGINS AND ADDIoKs MEET.
THE LEADING LIGHTS OF THE
AMERICAN BAR ARE COUNSEL
IN THE CASE-THE HEARING
RESUMED THIS AFTERNOON.

AhiAl1iNAN bAR AXE COUNSEL
IN THE CAsE-THE HEARING
RESUMED THIS AFTERNOON.
The celebrated case Of the Bay state
Gas Company which has aroused much
interest in both political and financial
circles, came up for trial before Judge
Wales, in the United States Court this
morning. The court room was crowded
and eminent lawyers from this and
other cities were present.
BILL OF COMPLAINT.
The bill Of complaint was filed by
William Buchanan, a member OF the
company. Mr.. Buchanan alleges that
the company was organized in 1889
under the name of the Pcninsular In
Vestment Company. Business moved
on until the directors decided to change
the name to the Bay State Gas Com
pany. buchanan says he holds 100000
or the 100000 Of income bonds OF the
company, issued in May, 1882 This
issue OF bonds, together with the 49,
OOO,OOO capital stock OF the company,
was issued to Herman G.. Mulock, in
consideration of the assignment by
Mulock to the company of a certain
bond or obligation of the Bay State Gas
Company, of Massachusetts,, for the
sum of $i,500,O00 Muloclx acted for the
Beacon Construction Company, Of
pennsylvania. OF which J. Edward Ad-
dicks was chairman, and owns IA $50
OF the 1900 shares. Buchanan pur-
chased his bonds from the last named
company for 100000 cash. The s4,-
10000 obligations, the complainant be-
lieyes, was until its alleged cancella-
tion, the only asset of the defendant
company of value. From 1890 to 1893
the defendant company paid 81 800 600
as interest, and the plaintiff and others
received their share. But since April,
1898. there has been no interest paid t.
the plaintiff.
Mr.. Buchanan also alleges that the
company has assumed obligation for
the payment of many hundreds OF thou
sands of dollars annually. without any
valuable consideration to itself and
solely for the fraudulent purpose Of
benefiting certain officers in control of
its affairs in connection with certain
independent enterprises In which they
were and are interested.
They have disposed, or attempted to
dispose of, the said 81 800 600 obliga-
tion of the Bay State Gas Company of
itsprincipal asset. Thecompany has also
ceased TO receive any considerable in
come and has been rendered insolvent
by the men connected with its man.
/ agement.
ADDICKS LITTLE GAME.
In 1894 Addiolgs. fearing he might
] ..F
| ton by reason Of a large part OF said
stock having been previously sold 10
| Independent parties. caused tho capital
to be increased to S15,00O.O00. By.virtue
Of his control of the capital stock Ad-
dicks has always named the directors
and officers of said company, and they
have always acted for his interest and
in his behalf. Mr.. Buchanan further
claims that the company owes him
$1,000 interest on shares which he
holds.
Mr. Buchanan says the net earnings
Of the company would have been suifi-
cient to pay interest equal to z per
cent. upon the income bonds of the de-
fendent up TO, and including the pres
ent time and the defendant owes the
complainant in respect to said bonds
such interest from April /, 1898, at said
rate. to date The defendant also asks
that true account OF all assets and
property OF said company, under the
direction of the court, OF whatever na-
ture, should be made
ADDICKS' SIDE OF IT
AS soon as Mr.. Addicks learned OF
the filing OF the bill, he at once insti-
tuted. through his attorney, counter
charges against William Buchanan, the
complainant, and all others concerned
In the case. A warrant was sworn out
for Buchanan's arrest for circulating
false statements concerning the Bay
State Gas Company, stating that it was
insolvent and bankrupt, and that j.
Edward Addicks, the president OF the
company, had diverted millions of
dollars TO his own use. and that unless
he (Mr. Buchanan) were not paid $685.
600 for the securities which he holds in
the company, would ruin Addicks If IL
took S150,0OO to accomplish the pur-
pose.
THE PROCEEDINGS BEGUN.
Mr.. Foster counsel for Buchanan.
moved that Addicks and Charles Kit
/ finger, his private secretary, be indict-
| ed for contempt OF court. ]. M. Carter
counsel for Mr. Addicks, interrupted
Mr. Foster, and asked for affidavits to
prove contempt OF court Anthony
Higgins then arose and suggested the
Offering Of the papers, which is the
proper course in the case Here en-
sued a pretty debate between counsel
Mr.. Foster and Mr.. Carter, the latter
contending that the proof OF contempt
is mere supposition on the part OF the
other side
Judge Wales ordered the reading OF
the affidavit and Mr.. Foster proceeded
TO read IT,
He said that the history Of the steps
leading to the appointment of a re-
ceiver is this. The other counsel con-
tends that Delaware is a close state
politically: that Mr. Higgins went to
New York some time ago and made
three propositions to the National Re
| publican Committee, and said If any
one of them were accepted the state
would go Republican. These proposi-
tiODs We're: First, to put Addicks in
/ Jail; second, 10 ruin him financially