Evening journal., 1903-07-21
|ARGES FRAUD
IN BAY STATE
Gas WRECK|NG
Continued from First Page)

4 Jersey company. The Bay State
q Company, of Delaware, incorpo.
a I in 1889. acquired s995,O0 of the
s. $1,000 capital stock of the New Jer-
& company. 1t was the $3.50, 900, 900 |
4non stock of this company that was
II cred among thousands of inves-
Until 1895 the stock, the par
of which was $50 share, ad-
& ed until it touched s25. Then, in
4 came the institution of suits
Y lst the company and sudden
p, until stock that had but a short
before been looked upon as good
o less than 81 a share. Since then
iecline has been steady.
is the contention of the receiver, |
H ge Wharton Pepper, that it was
ne result of fraud and collusion
81 the company was deprived of its
valuable assets. Apparently
device known to modern finan-
lg was used to strip the company
n that it had Of value.
The Charge Against Addieks.
is alleged by the receiver in the
& of complaint that Addicks, being
q lntrol of the Delaware company
Is president, in 1893, entered into
81 llawful combination and conspir-
With Frederick w. Whitridge, of
York: the Mercantile Trust Com
W of New York, and the officers or
6 Delaware company, as a result of
Ta.I rtra Of
loss to its income bondholders
stockholders, unjustly deprived of
aggregating s6,0OO,OO0 and of
he of dividends. Since the COM
on of these alleged wrongful acts,
Delaware company, the receiver
has been unable to pay interest
income bonds or dividends on its
lnding capital stock.
further alleged that Henry II.
g, the Standard oil man, and
idge conspired against the inter-
( the company. The receiver sets
that Rogers and Whitridge OBJ
the control Of the stock of three
n companies, as voting trustees,
ler with q third man, since dead,
e friend Of Rogers and Whitridge.
wo represented that if the stock
put in their hands they would op-
the companies solely for the BEN
the Delaware company.
the deed Of trust, Rogers, Whit
and the third trustee acquired the
to name directors Of the Boston
lnies.
er naming these directors, it il
"a, Rogers entered into an agree
with Henry NJ. Whitney for the
,f the Dorchester and Brookline
nies, owned by Rogers. An op-
had been given to the Delaware
ny for S6.0O0,O00, yet the price
or the properties by the New
nd Gas and Coke Company in
Whitney was interested, was
900. 1t is alleged that in return
e S3,000,000 additional considera-
eogers procured from the Boston
ompanies fifty-year contracts,
effectually put them out Of the
s competitors.
receiver further AYERS that Rog-
-ced from the officers of the Del
company a trust agreement for
rpose Of turning over the control
anagement OF the gas companies
coke company. To this end, he
Rogers secured the co-opera-
nd connivance of Whitridge then
as counsel for the Delaware
ny. He alleges that the purpose
ers and Whitridge in Immediate
ting new officers and directors
Boston companies and of the
ersey company was in pursuance
scheme.
further declared that in order to
he fifty-year contracts valid un-
terms of the trust agreement
cement was fraudulently altered.
ars that the $4,000 was the
)aid to Rogers for the violation
of his contract Of trust where
assumed and agreed to protect
hts and interest of the Delaware
ny in its Boston properties.
ares Foreclosure Sale Legal.
further averred that the action OF
dicafe represented by Kidder, Pea
Company, in buying in for Sll,-
under foreclosure, stocks Of the
companies, valued at SIV,VlViVOV' US
the acts Of Rogers and Whitridge
legal and that the auction sale
the title of the stocks was trans
vas ineffective to deprive the Della
ompany of its rights.
ourt has fixed the first Tuesday in
as the return day. The receiver
ed for an injunction to prevent the
over of the stocks Of the Boston
les; that Rogers and Whitridge be
yed as trustees; that their dis.
be .hout prejudice to the right
receiver to recover from them
{ receiver be appointed TO take
of the Boston gao companies.
Organization Plans.
York, July a.-The committee
will undertake the reorganization
Bay State Gas Company OF Della
ow in the hands of Receiver Geo