The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1899-09-15
FOES OF
BAY STATE.
They Throttle the Earning
Capacity of the
Company.

y
nipulation of Bay State Gas securi-
ties, follows another story of Incl
dental fnanciering almost as re-
markable. 1t is tale of now obli-
cations pledged to secure the pay.
ment of bonds may be rendered
worthless by systematic attacks
upon the earning power of the con-
Germ involved, made by men pre-
sHfaably and officially supposed to
: be in charge of its affairs.
1t appears in three suits brought
in Massachusetts and Delaware
that the stock of four gas companies
in Boston were pledged by Jt Ed
ward Addicks and William L. l..
Dillaway as security for some $l2,-
900, 600 Of bonds. These bonds were
issued by the Mercantile Trust
Company of New York, and that
company held as the pledge for
their payment the ownership OF the
capital stock of the four Boston gas
companies which had been absorbed
by the Bay State Gas Company.
But it did not hold the power to
vote that stock. That power, OF
course, carried with it the control
of the companies named.
This control, it is asserted by the
plaintiffs in these suits, was after
wards transferred to three persons
absolutely inimlcal in interest to
the companies they purported to
represent, and these persons are
alleged to have so exercised their
control as to render the security
worthless by destroying the earn
ing power of the companies.
This voting power carried with it
the management of the Boston gas
companies, out of which, ultimately
the Bay State Gas Company of
Delaware must earn whatever it
could. AS to the S12,OO0,OOO of
Boston United Gas bonds, which
also depended for the payment of
their interest upon the earning
power of the Boston gas companies,
their position was dependent upon
the management OF the gas bust
ness.
Thereafter, is asserted, Addicks
and Dillaway, through the Bay
State Gas Company of New Jersey,
placed the control of these compan-
les in the hands of men absolutely
opposed to their success. These
men were Mr.. Henry II. Rogers,
John e. Moore and Frederic w.
Whltridge. This transfer of the
voting powerls alleged to have been
made by Addlcks and Dillaway
without the knowledge or sanction
of the stockholders OF the Bay State
Gas Company.
Now, it happened, according to
the complainants story, that Rog-
ers substantially owned two OTHER
gas companies IN Boston, which
competed with the companies con-
solldated by the Bay State Gas
Company. These competing com.
panlcs were the Dorchester Gas
Light Company and the Brooklyn
Gas Light Company.
In further pursuance of this pro-
gram it seems that Rogers trans
terred the control OF his own two
companies, as well as of the four
owned by the Bay State Gas Com
pany, to the New England Gas and
Coke Company. The assertion now
follows that the New England Gas
and Coke Company is operating
these gas properties in such a way
that their entire property and BUSH
ness must soon pass under the ham,
mer.
When this cheerful program shall
have been carried out, it Is asserted
that the whole fabric of paper and
print securities issued by the Con-
glomeratc corporate bodies various
ly known as the Bay State Gas Co.
OF Mass chusetts, the Boston Gas
Light Company. the Roxbury Gas
Light Company, the South Boston
Gas Light Company, the Boston
United Gas, the Bay State Gas Co.,
of New Jersey and the Bay State
Gas Company of Delaware, will be
worth just what the plants of those
four Boston companies, operated at
a disadvantage and a loss, will
bring at sherifr's sale. And bond.
holders, stockholders and other
creditors. holding millions upon
millionsof ostensible securities, will
see the flimsy basis upon which their
holdings have stood. They may
scramble for the crumbs.
As to the method by which this
scheme is being brought about, the
charge is made that the directors
of the subordinate gas companies,
appointed by Rogers and Whitridge
at the instance OF the New England
Gas and Coke Company, have bound
those companies to buy gas of the
latter for a period of 50 years.
Twenty cents per thousand cubic
feet is the prize fixed in this con-
| tract.
The price, it is asserted, is far
above the cost OF production. Under
it, the plaintiffs say, the companies
can never earn any profit.
And now, it seems by the COM
| I'luiilalts' lhS NICl NulllllC L uSt
Company is about to give proxies on
the stock held in pledge for it, which
will more ctfectually fasten the
control of Bay State and everything
owned by the Bay State, in the
hands of the New England Gas and
Coke Company.
In all the pending litigation, it is
said. every conceivable prrtext for
delay has been taken advantage of.
Whether this was intended TO tire
out the suing parties, or there is a
deeper motive, the lawyers for Bay
State stock and bordholders are
unable 10 decide. One theory is
that the litigation here may be pro-
longed until the utter worthlessness
OF all the securities becomes appar-
ent. When it is clearly realized by
all Bay State creditors that there
is "nothing IN sight it may, they
say, be an easy matter for the New
England Gas and Coke Company to
take possession of all the tangible
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