The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1897-12-30
DECISION AGAINST ADDICKS.
Charges Preferred Affecting Him as Re-
ceiver of the Staten Island Terra
Gotta Company.

Newark, Dec 29.-T. j. Purdy, q New
York lawyer, who appeared before Vice.
Chancellor Emery yesterday rs counsel
for the defence in the suit brought by j.
Edward Addicas and John Bacot against
ths Fidelity Title and Deposit Company of
this city created somewhat of q sensation
by the vigorous allegations made in al af-
fldavit submitted by him. Messrs Addichs
and Bacot made an application, as receiv-
ers of tn, Stuten Island Terra Gotta Com.
pany 10 compel the Fidelity Title AMI De-
post Company to pay over to them $1,000,
which the company holds as trustees for
bondholder named George Konnan and it
was the affidavit Of Lewis NJ. Thompson
of Kcnnuu's counsel that Mr.. Purdy pre-
senteu
Some ti,no ago part Of tho companys
plant at spa Springs was bnrred, and tho
Insurance paid amounted to sjS 900. Tho
receivers got tho consent subsequently Of
all except two OF the bondholders to apply
that money to tho rebuilding Of the plant.
The money was paid to them, with the ex-
ccption IF IL 800, which the court drsotsd
the trustees to hold Since then 81, 800
worth of work has been done ut spa
Springs and the receivers desire tho
money reserved on the ground that 5hers
is security for it in the shape of the work
done.
Tho answering affidavit set forth That
wrecked, and rendered totally insolvent,
was made receiver. evidently through mis-
information, and that rs receiver, he had
negotiated the sale of the assets OF the
company to himself and transferred his
bid to tho Sta on Island Clay Company,
a concern Of which he was ono of the i'll
curporators.
1t was also claimed that he then applied
to the court for the Insurance. money,
Ul M a
mortgage for$3) ,0lO and that This former
president, receiver and negotator of the
su!c of the remnant of the wrecked cor
porasion asked that tho trustees bs direct
ed to pay into his own hnnds the money
which it was the duty Of the trustees
either 10 reinvcst for tho bondholters or to
exprna to replace the properly destroyed.
1t WAS also alleged that "a double form Of
consent, that was misleading to The bond
holders, was pre- ,ented for thoir signatures;
that nlsstatenient was recklessly employ.
ed toiniluence bondhol'lers, and tn at there
was othes mis- representation.
'',rhe very words of the form Of con-
sent" continued the affidavit, lead to
the strongest suspicion that this insurance
money is to be diverted into other chan
nels than the restoration Of the buildings
and the apparatus destroyed by fire.
"After the said buildings where fire
proof material was manufactured were de-
stroyed by fire, that branch of the busi-
uess therein conduct VI seems to have
been suddenly discovered to have been
very profitable.
1t was SO profitable in connection with
the management of tha5 and other pOr-
tiuns of thu business under the control of
ono of the present receivers while he was
acting us tho president Of the company
ihat, after having paid dividends for sew
efal years uuuor hr previous management
the company suddenly cenlm anced to run
down financially under his cuntrol, and
Was 80 etfectuAlly handled ANA manipu-
lated that after he had been PRESIDENT IL
Short tiale it YVES found to bo loaded up
with 5000 indebtedness which, ~ one
of the receiver, he increased ST 900 moro
in two years time. Every month that its
assets arc withheld from division among
it, hondboldars, is costins them under
this ratio about $1,000
After hearing argument the viCn cham
cclnr denied tho application Of Addicks
and BacUt