Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1900-12-13
BAY STATE GAS co. OF NEW JERSEY.
Henry q. Kelsey Appointed Receiver By
United Stntes Cnnrt at Trenton.

Henry v. heisey AppOinted heceiNer W
United States Court at Trenton.
In the United States Court at Tren-
ton on Saturday Judge kirkpatrick ap-
pointed former Secretary Of State Henry
U. kelsey to be receiver Tor the Bay
State Gas Go, of New Jersey. The ap.
plication was made by Charles s.
Blod 4stt Of Hartford, Conn, who owns
10 of the company's bonds and 10 Bay |
State Gas Trust certificates issued by |
the Mercantile Trust Co. of New York. |
While the name of j. Edward Addicks |
does not appear ia tine suit it is sup |
posed to BIZ move made by the Ad- |
dicks interests. who have been in con-
trorersy with Henry H. Rogers and other
Standard Oil magnates for some years.
The matter is believed to have some
bear ing on the present litigation in
which the Bay State Gas Go. of Della
ware is interested.
The bill of complaint is q volumin-
Gus document, and relates the whole
history of the Bay State Gas Co. con-
toversy frou its start. Briefly it states
that the Bay State Gas Co. Of New
Jersey was organized in that State
early in 1889 with capital of
$1,000, coo. Its principal object was the
manufacture of gas and the acquisition
OF gas companies in Boston. A month
later the company acquired q, 800 out
of total OF 5000 shares of the boston
Gas Light Co, S, 800 out of 6,O00 shares
of the Roxbury Gas Light Co., 3, 800
out OF A, 400 shares of the South Boston
Gas Light Co.. and 1893 out Of 5000
shares of the Bay State Gas Go. of
Boston, Mass. These shares aggregated
| in par value So, $50, 300. The company
had no other property than the owner
ship OF this stock.
into with the Mercantile Trust Co. of
New York, thar, as the New Jersey
company needed Sl2, 600, 600 to pay for
thesa shares, and also to acquire other
gas stocks that it issue it's bonds to
that amount, and that, on the pledging
of these shares already acquired to the
Mercantile Trust Go. that company
would i>sua a like amount of it's own
certificates. The New Jersey company
issued these bonds, agreeing to pay the
interest IL the returns from pledged
stock proved inadequate. The New
Jersey company also Issued second
series of bonds to the extent of S4, 000,-
600, also secured by the certificates Of
the Mercantile Trust Co. A still fur
ther issue of bonds to the extent Of
So, 000, 600 was made, and $1,000 addi-
tional shares of the Boston Gas Light
Go. we're pledged to secure them. These
bonds were sold on the market and were
and are known as the Boston United
Gas bonds.
About this time, or in August, 1889,
the Bay State Gas Co. of Delaware was
organized and bought $3.50 of the
10, 600 shares of stock of the New Jersey
company. The New Jersey company
thereupon assigned to 1t all right to re-
eelye the moneys from the Mercantile
Trust Co., and the Delaware company
assumed the obligations Of the New
, Jersey company.
The only property that the Delaware
company had was the capital stock o.
, the New Jersey company, and the Della
, ware company as declared lnsolvent
To prevent foreclosure proceedings thu
Delaware company trans erred TO Henry
/ II. Rogers. John G.. Moore and Fred
, erick W. Whitridge all the capital stool
of the New jersey company. n be helt
. in trust until the first series of BostoI
: United Gas bonds were paid off. Ii
, this way, the complaint alleges Mr.
, Rogers and his associates became tn
Q virtual owners of the voting power o
o the various Boston companies withou
really owning dollar of the stock.
r In March, 1897, Mr.. Rogers, Franci
: o. Barstow and John Bushnell wer
' elected directors of the New Jerse
i company, and obtained from the Mer
q camille Trust Co. proxies to vote at tn
a next annual meetings of the variou
!. Boston companies. BY this means the
/, elected at these meetings officers an
4 directors we'll known Standard Oil Inc
n who represented the Rogers contingent
Subsequently an agreement was entere
into with the New England Gas an
Coke Co., with Henry NJ. Whitney a
president, whereby, for the considers
tion of 50, 600, 600, Mr.. Rogors and th
y Other trustees agreed to sell and tur
over not only stocks dsbnnds owne
y by them, hut also the right to vote o
! stock transferred to the Mercantil
u Trust Co., trustee, MS security for th
y payment Of the Boston United CT
y y bends.
1i The complainant in tire action claim
3 that this action on the Fart of Rogel
Z. and his associates constituted breac
u of trust.
!, Going further, the complaint statt
IL that in 1897 the New England Gas an
Coke Go. became the owner Of all I'll
~ stock of the Massachusetts, Pine Lii
y. Gas Co. ,and made contract with tn,
n company to purchase from it for
~ years gas of an inferior quality at
" price that forced the various Bosto
T. gus companies out of business. As
,. consequence OF the entire control of Il
= output of gas in Boston and I'll
U. vicinity, the New England Gas ar
~ Coke Co. was enabled to market
bonds and stock to the extent of $50
600, 600.
With the appointment of the receiv
Judge Kirkpatrick issued an order {
e. the Bay State Gas Go. of New Jers
commanding it to show cause why Il
ve preliminary injunction restraining Il
company from disposing of its assets
by property should rot be made perm
j. nent. The return Of the order is g
down for Monday, December oath,
of Trenton, s
n, When asked about the case j. Edwa
In Addicks said:
"The entire capital stock of the b
H. State Gas 20. OF New Jersey is own
ir- by ths bay State Gas Go. of Delawar
TO but is held in trust for their inteIet
by II. II. Rogers and f. W. Whitrid
he of New York. think that the receive
X. ship will not be injurious to the intt