Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1896-12-17
BAY STATE LITIGATION.
Arguments on 1seceivership and Injunction
Rules iii the Unitad States Court.


Rules iii the United States Court.
In the United States circuit court
on Tuesday, Judges Wales and Dallas
sitting, argument was heard in the
suits Of Godfrey Morse Of Boston and
others against the Bay State Gas Co.
of Delaware and the Fidelity Insnr-
ance, Trust and Safe Deposit Go. Of
Philadelphia, executor of Henry q.
Gibson, against tho Bay State Gas Go.
OF Delaware. The action was taken on
the part of income bondbolders, and
the argument was on rules to show
cause why a receiver should not be
appointed and why an injunction
should not issue against the company,
prohibiting IT from disposing OF stock.
B. Il. NJ. Tower of Boston, Samuel
Dickson Of Philadelphia, and j. III.
Hoffeoker, Jr., Of this city, repre-
sented the bondholders and Senator
Gray and II. II. Ward Of this city, and
Col J. III. Benton of Boston appeared
for the Bay State Go. II. G. Andrews
and Parker Chandler of New York and
several local attorneys were interested
spectators.
Mr.. Tower, who opened the argu,
ment, alleged that there had been an
improper diversion of 81, 500, 600 of the
assets Of the Bay State Gas Co. of Della
ware. He held that the amount which
should have been applied to paying
interest on the innome bonds had been
otherwise diverted. He further claimed
that by said alleged diversion deficit
was the result.
He held that by an agreement which
was entered into on April 9th. 1880.
the Delaware company had assumed
the obligations of the Bay State Gas
Co. Of New Jersey which was incor-
porated on February 18th, 1889. He
accounted for the alleged deficit by
asserting that excessive salaries had
been paid and the funds expended in
other ways. He alleged that }. Edward
Addicks caused the agreement TO be
made. He held that the defendant
company, being deprived Of certain
assets, is insolvent. He asked for an
accounting to the court of all the
moneys and assets in possession of the
company, and that one or more persons
be appointed receiver or receivers, the
applications being made in the bill OF
complaint.
At the conclusion Of the reading
Of the bill Of complaint in the Morse
case, Attorney Dickson. who repre-
scented the Fidelity Trust Co, made &
formal motion for the appointment Of
a receiver and the granting of an in
junction.
Upon Judge Dallas expressing 6
desire to hear the affidavits of tbs
parties concerned, they were read by
Mr.. Hoffecker.
w. Il. l.. Dilla%ay of Boston, in his
affidavit recited a history of the Bay
State transactions, Of. which Dillaway
was party in some cases. Among
other things the statement was made
that Addicks as president of the com.
pany received a salary of S25, 200, which
was in his opinion disproportionate t.
the services rendered; also that Ad
dicks had made the proposition tina
the Bay State Gas Go. of Delaware
advance funds for enlarging plant O
the Bay State Gas Go. Of Massa
chusetts. He alleged improper man
agement. The deponent alleged that
in conversation with Dwight Braman
who had been one OF the receivers o
the compBny. he (DilIaway) had asket
Mr. Braman IL he did not receiv,
$50, 600 for his services as receiver
whereupon he attributed to Mr.. Bra
man the remark that some of the none,
was paid to Buchanan, who hat
brought the suit.
William B. Wright OF Boston, VIII,
had been a stenographer in a Bay Stat
investigation, and Michael M. Cunniff
also of Boston, who was stockholder
also made alfidavitH.
Senator Gray, representing the Ba,
State Gas Co., asked for delay il
order to examine the atiidavits, wher,
upon plaintiffs counsel stated that i
there was such a delay they would asl
permission to examine the books AMI
papers of the Bay State Co. Tho cour
ordered that the bearing on the app.i
cation for access to the books ant
papers proceed.
Samuel Dickson, representing tn
Fidelity Insurance, Trust and SAT
Deposit Co., executor Of Henry c
Gibson, an income bondholder, con
tended for his motion for permission Il
see the books. He road letter whici
was said TO have been written by J
Edward Addicks, and the construction
put upon it was an implication of a
acknowledgment on the part Of Mr.
Addicks that no had bought out
former suit, but could not buy out tn
pending one.
Mr., Dickson said he represented in
terests worth $500, GOO.
Col. j. ii. Benton of Boston, who ap
peared for tho Bay State Co.. contende
against the compliments motion.
After considerable argument. tn
court extended tho. time for tho hear
ing two weeks in order to give the Gle
iendant and opportunity to look owe
tho ailidavits filed by the complainant
and to file their own afIilavits in reply
The motion to produce the books an
papers of tie company was not granite
for the present, although the court in
timated that there was no doubt as t
its right to order the production Of th
books and papers. The court will wal
until the affidavits are all in befor
giving decision on the motion.
Oil Tanker Allegheny Seized.