The evening times. [volume] (Washington, D.C.) 1895-1902, 1900-12-10
THE BAY STATE GAS WAR.
AdaIcks, auarrei with Standard Oil
Interests Resumed.

NEW YORK, Dec. 10.-Once more the
Bay State Gas Company has become the
subject Of litigation, and again the quar-
reis of J. Edward Addicks, Of Boston and
Delaware, against Henry 3. Rogers. and
other Standard Oil interests are TO be aired
in the courts.
The latest move In the fight that has had
so many phases was made Saturday. when
Judge Kirkpat-iek, of the United States
Circuit Court. at Trenton n. J.. appointed
Henry c. Kelsey. ex-secretary Of State for
New Jersey receiver for the Bay State
Gas Light Company OF New Jersey. The
appointment was made upon the appliea-
tion OF Charles S. Blodgett. OF Hartford,
Conn, who owns ten of the company's
bonds and ten Bay State Gas Trust Ger
tfffcates of tho Mercantile Trust Company,
of New York,
Although the name Of ]. Edward Ad-
dicks does not appear IN connection @tlth
the receivership. the move is regarded as
being his. This. at least, is the opinion
Of financial interests In Boston
Mir. Addieks has kept the affairs Of the
different Bag State Gas companies ia the
courts for years. Usually be has been de-
feated, md for two years and more his has
been 8 minority interest In the property.
control Seing vested WITH II II. Rogers
and his friends and with the New England
Gas Light and Coke Company, IN which
Mr.. Rogers and the Standard OIL interests
are prominently identified. The present re-
ownership suit is an attack upon the Rog-
ers Interests. It alleges breach OF trust
upon the part Of Nr. Rogers and others,
and attempts to show that the Standard
Oil interests have wrecked Boston gas con
Germs.
the bin of complaint relates the whole
history of the Bay State gas controversy
from its start. Briefly it states that the
Bay State Gas Company of New Jersey
was organized in that State early IN 1889
with a capital of 81 COZ, 010 It's principal
object was the manufacture of gas and
the acquisition of gas companies in Bos-
ton. a month later the company acquired
1850 cut u total of 5000 shares OF the
Boston Gas Light Company, $500 out Of
5000 shares of the RoxbuPy Gas Light
Company, :. 500 out of 400 shares Of the
SostiI Boston Gas Light Company, aud
4.e92 out Of 5,6G0 shares OF the Bay State
Gas Company of Boston. These shares
aggregated in par value g. SIS, 3UJ. The
company had not other property than the
ownership of this stock.
An agreement was then entered into
with the Mercantile Trust Company of
New York that as the New Jersey com
pany needed Si2. 000. 600 to pay for these
shares and also TO acquire other gas
stocks. It issue its bonds to that amount,
ard that On the pledging of those shares
already acquired to the Mercantile Trust
Company. that company would issue
, like amount of its own certificates.
The New Jersey company issued these
bonds. agreeing 20 pay the interest II the
returns from pledged stock proved mad
eQUate. The same company also issued q
second series OF bonds to the extent OF
81. eG0. Geo. secured by the certificates OF
the Mercantile Trust Company. a still
further issue of bonds to the extent OF
81, 000. eco was made. and 15.oeo additional
shares of the Boston Gas Light Company
were pledged 10 secure them These bonds
were sold On the market and we're and
are known as the Boston United Gas
bonds.
About this time. or in August. 1853 the
Bay State Gas Company of Delaware was
organized and bought $3.50 OF the 10000
shares OF stock of the New Jersey COM
pany- The latter company assigned 10 it
all right 10 receive the moneys from the
Mercantile Trust Company, and the Della
ware company assumed the obligations Of
the New Jersey company.
The only property that the Delaware
company had was the capital stock OF the
New Jersey company. ard the Delaware
company was declared insolveHt- To pre-
vent foreclosure proceedings the Delaware
company transferred TO Henry II. Rogers.
John G. Moore and Frederick " Whit
ridge all the capital stock OF the New Jer-
sey company to be held in trust till the
first series OF Boston United Gas bonds
was paid of
Ia this way, the complaint alleges, Mr.
Rogers and his associates became the viz
tual owners of the voting power Of the
Boston company without really owning a
dollar of the stock
In March. 1881. Mr.. Rogers. Francis @
Bsrstow and John Bushnell were elected
directors OF the New jersey company. and
obtained from the Mercantile Trust Com
pany proxies to vote at the next annual
meetings Of the Boston companies. By this
means they elected at these meetings as
officers and directors weii-kzowa Standard
Oil men who represented the Rogers con-
tingent- Subsequently an agreement was
entered into with the New England Gas
and Coke Company. with Henry NJ Whit
ney as president. by which for $4,000. 600
Mr. Rogers and the other trustees agreed
to sell and turn over not only stock and
! bonds owned by them. but also the light 70
vote On the stock tTanferred to the ATer-
camille Trust Company trustee. as secuF-
ity for the payment Of the Boston United
Gas bonds Mr. Blodgezt declares that
this action on the part of Rogers and his
associates constituted breach Of trust.
Going further. the complaint states that
in 1897 the New England Gas and Coke
Company became the owner Of ali The
Massachusetts Pipe Line Gas Company S
stock and made contract with that com
pany 10 purchase from it for fifty years
gas Of an inferior quality at a price that
forced the Boston gas companies out of
business. AS a consequence OF entire
control OF the output OF gas Il Boston and
vicinity the New England Gas and Coke
Company was enabled to market its bonds
! and stock to the extent of $50, 600, 09o.
Further allegations are made concern
ing Mr. Rogers handling OF different gas
companies and their contracts. The whole
complaint presents the Addicss side Of the
controversy and dishes up in different
forms the charges Of which financial in
terests in New York have heard so much
dIring the past Ave years.
With the appointment of the receiver
Judge Kirkpatrick issued an order IN the
Bay State Gas Company Of New Jersey
commanding it to show cause why the
preliminary injunction restraining the
! company from disposing OF its assets or
property should not be made permanent.
The return of the order Is set for Deem
Der "a at Trenton.
The Bay State Gas Company, of Della
ware. which controls the New Jersey cor
Germ OF the same name, as IS shown IN the
receivership application, has now 2 capt
taIization OF So coo. 600. Two years ago
when the capital was only $50. 600 Goo. the
stock was traded on both the New York
and Boston Exchanges, and was at times
made active by Addicks' manipulation
| The increase in the stock however. and
| the refusal of the management to give in
| formation concerning the company. led to
/ Tho ctncI- hainr rau1nxaS from fhoca av