The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1904-10-25
J. EDWARD AppleKs TELLS " ny HE FAILED TO GRAB MORE
MILLIONS m GAS MANPuI ArloN-ALso TELLS HOW THE
STANDARD OH COMPANY HIM SWALLOW A
BITTER DOSE

WILMINGTON. pels oct ga
The scorchlng dcnunciation Of J.
Edward Addicks by Thomas y Law
son, IN "trcnrled Finance has re-
newed interest IA tho gas magnate
ana hts methods Testimony that
he gave In legal proceedings inNolF-
ink the Hay state Gas company II
heinz discussed ga the tlght that
Lawson has thrown on the methods
az high finance"
Addicss testimony Ga the equity
proceedings begun by GeefEe
Wharton Pepper. receiver Tor the
Hay state Gas company, Of nelas
ware j. startling In les refreshing
frstnknesa In the testimaueN taken
IN this suit Tor the recovery ar at
least an accounting of tia.eaa.ea
Of stock OF the BAY state Gas eem-
pauy. Addlcks reveals secrets 81 his
methods and tells why they failed
Speaking 90 the Ray state Gas eam=
rany Addicka said Il vas mex
psrteuctd On large corporations at
that time and I feared Go 50 toe
leen II would have been lust as
well II we had isaucd Sfoen.eQ0 more
stock and the increase of shares
would have been worth as much As
sSoeo.aoo would have bsen hut /
vas laok ina out unscifishly mere Tor
other people than for myself
Apparently astoumded, counsel fer
the receiver asked;
sYou think if 5.ooo Gee had been
issued. making sto.o8e.0Vo IN an. the
sio.eaQ.elo outstanding would have
been worth more than the 5000. z
eee7-
Would have been worth as mitch
= szsre a. five. worth az mueh.s ex-
plainsd the rasman 4 think the
narket price would have sustained
IT
~And the assets back % It would
have had nothing az all 10 do with
its value pursued the lawyer.
Mark the reply Of the light heart
81 Addickss
exc. A mere matter % the pub
lie being used 20 be-, that Is All.
Procsedinx in replies u questions
concerning the affairs % his bay
state Gas company. Addieks ex-
planned how he had distributed stock
Of the Bay State Gas company 10
the men who had -risked- their
ncney ia Beacon Coustruction conn
p4ny He apparently Was surprised
thar his rberaiity should surprise
opposing counsel who failed "a sec
why men who assumed ordinary or
extraordinary business risks should
he rewarded
Addlcks was asked n the Della
ware Gas company. after issuing a.
eco coo IN stock and f.1oo.0a0 In
bonds could have issued sufficient
stock 10 get additional distribution
Of stock IN Massachusetts,. lie re-
piled.
.'Of course II could
And having that power and ahll-
sfy 70 get IN those millions Of cash
you failed % take advautage Of the
opportunity suggested his inquis-
ftor.
At that time gllbly explained
the Eas man. 4 had less experience
l did not realize IL a. plainly sa
do nov.
II had had the experience
have had since with corporations. ]
would have done it instantly and Il
could have been done
All through his testimony Adj
dicks admits his part. insisting that
everything was legal Never does
he refer 20 the common ethics. ex-
certing 20 regret any tendency 70
Be mindful Of others interest. That.
be virtually says. was due 70 in
experience"
Construction company. and later OBJ
- -. -. -
formed the Bay State Gas company.
81 Delaware, and was TT L vas
20 satisfy what counsel for the re-
ceiver termed IAN alleged debit but
which Addicks asserted vas real
that 100000 shares of naY state
Gas stock. issued when the concern
was upon the verge Of bankruptcy
and Of a par value Of s7s.09a. 0aa
we're transferred 70 the Beacon
company.
Addicks' claim. as the Beacon
company. was pet forth IL q letter
to Addicks. AZ the nay State Gas
company. Of May 20. 1902 Il Was
signed BY W. H. Clerk. and L de-
manded $4,000 900 In cash. Clerk
testified that Addieks prepared the
letter.
Alice. since elected 70 the United
States Senate: Newell Hall and
James q. shaw formed the com
nittee to "inveatigate~ the validity
Of Addicks' claim. Il was agreed "a
cancel the obligation b. issuing and
Transferring ~ Addicka. AZ the
Beacon company. L5oe 600 shares Of
gas company stock. Clerk signed
a receipt for the stock on July g.
1861
Without knowing. IN fact. that
II was iasued?" asked the counsel
Yes. SIR replied Clerk. lie said
he signed an order the same day
upon G. II. Keller. transfer agent. 70
deliver the stock 70 Addicks
Why Ola you give an order. az
chairman Of the Beacon conztaue-
ukEoUALEo ~ SEATTLE.
a5SSnS Soc T HfaRSii