The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1898-03-12
ADDICKS MUST PAY
Chancellor Declares That He
Shall Deposit Bonds to
Pay Company's
Debts.
Mr.. RECORDS FEELINGS HURT
He Resents the Gas Mans Refec-
tiens Upon His Counsel
Fees.


of Chancery this morning over the sAd-
dicks-Staten Island Terra Gotta Lumber
Company. The company became insol-
vent in 1885, and E. Addison Addicks and
John V. Bacot were appointed receivers.
After these gentlemen had carried on the
business short time the Chancellor slg-
gested that they wind up the receivership
and form a new company. That was
done; Addicks put in s12. .ON0 to pay claims
against the company and took 1880 of the
5000 shares of stock. the other ten going
to men enough to make up a corpora
tion and a board of direc-
tors. The new company which was
called the Staten Island Terra Gotta Clay
Company, was to be run by the directors
for three years, and then be turned over
to Addieks, who was to pay all the claims.
Things went along peaeeably until last
August, when one of the buildings of the
plant at Woodbridge was burned down.
The company received $5s,0O0 Insurance.
and started to build new structure.
The directors wanted one kind of build
ing and Addicks wanted another. The
controversy became very warm and the
directors of the company transferred all
the assets of the new company back to
the receivers. Addicks claimed that this
transfer was Illegal and a four-cornered
fight began in Chancery.
This mornings proceedings were taken
for the purpose of effecting some arr
rangement whereby the business
could be carried on as it was
claimed that the litigation and general
ENHANCEMENT of the company's affairs in
the courts were seriously impeding its
progress.
The Chancellor listened to long arsu-
ments by William H. Corbin and Charles
D. Thompson, representing Mr.. Addicks,
and to Otto Grouse and George L. Rec
ord, on behalf of the directors.
1t was plain to be seen that there was
something more than the ordinary bad
feeling which exists between htigants in
this case. There were many inferences
of wrongdoing on both sides, and when
Mr.. Thompson undertook to speak of
large sums which he said had been paid
to the counsel of the receiver for fees,
the Chancellor stopped him
Finally when each side had exhausted
its eloquence the Chancellor suggested
that Mr.. Addick's deposit $50, 900 worth
of first mortgage bonds of the Staten
Island Company with the New Jersey
Title Guarantee and Trust Company, SUBJ
ject to the control of the Chancellor to
meet any just claims against the COM
pany and that the receivers transfer back
to him all the assets of the company now
in their possession.
At this Mr. Addicks, who was present
in the room, decidedly shook his head
Why your honor he exclaimed,
thousands of dollars have been paid by
pany for counsel fees
At this Mr.. Record jumped to his feet.
His face was flushed and he angrily ex-
claimed
Your Honor, we want that subject in
quired into Mr.. Bacot and myself have
lived in this community years and have
built up reputation for honest and fair
dealing. and don't propose to have it
assailed here. / demand"
The sharp rapping of the Chancellors
gavel interrupted Mr.. Records remarks.
II did not allow Mr.. Thompson to go
into that matter, Mr. Record said the
Chancellor. ''and l cannot permit you to
go on
Mr.. Corbin started to talk in the same
line, when the Chancellor said
There is too much feeling here alto
gether.''
That remark quieted matters down and
after some further talk the Chancellor's
suggestion was accepted. The matter
went over until Tuesday. when the for-
NAL order will be signed.