Middletown transcript., 1904-01-16
HAS FILED SUIT
Action in the Philadelphia
Courts Brought by Receiver
Pepper
ADDICKS MADE LARGE SUMS

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Startling in character are the two bill,
of complaint filed by George Wharton
Pepper, receiver for the Bay State Gas
Company of Delaware against J. Edward
Addicks in the United States Circuit Court
of Philadelphia Monday. 20
The bills prayed for the return of over
81, ,0O0, 900, alleged to have been illegally
expended, and numerous serious charges
are made against Mr. Addicks.
Foremost among these is the allega-
ton that the charter of the Delaware
Company was SO amended as to advertise
stockholders meetings in rural weeklies
instead of local dailies in order to keep
the knowledge of such meetings from The
stockholders.
1t is held in the bills that National
Committeeman Addicks has never ac-
counted to the company for the large
sums which heis alleged to have diverted
from the treasury. The claim is made
that Mr.. Addicks received from the funds
of the company $2O2, 755. rs as salary and
in addition $l4, 156.79 as directors fees
and that he has caused to be paid to var
ious officers and employees of the con-
Germ $l9,2 as extra compensation and
gifts. He is accused of injuring and
damaging the concern to an amount in
excess of 81, ,265,O 900.
The papers are drawn by W. B. Bodine
and F. R. Bracken attorneys for Receiver
Pepper, and cite Mr.. Addicks to appear
in court ON the first Monday of February
next and bring with him an accounting
Of the moneys of said company converted |
to his own use.
Robert Pennington is local counsel for |
Mr.. Pepper, and it was at first expected
that the bills would be filed in this city. |
One Of the bills in reciting the forma-
tion of the company, with Addicks as
president, says:
Defendant was director of Delaware
Company from March 10Th, 1890, to De-
nmber 14th, 1901, and president during
at period with the exception of the
ar ending November 18th, 1897, dur
which year he was ce-president.
was therefore, in a position to, and
at all times dominate and control
aware Company and its directors and
GERS.
Delaware Company was never en-
led in the production or distribution
gas or any other commodity, but de-
ed its income entirely from the owner
p of stocks and bonds in other COM
hes. 1t was, therefore, unnecessary
the best interests of the company that
BE sums should be spent in salaries
fees. Yet defendent, in order to
fliate his control of said company
sed large sums to be paid for salaries,
ectors' fees and gifts" l.
Alleged Breach of Duty III
The bill here makes this charge:
In breach of this duty to use his posi-
as president and director and to
mage the affairs of the Delaware Com
by for the benefit and interest of the
holders of stocks and bonds of said COM
pany, defendant in connivant and con-
,piracy with other officers and directors
of said company fraudulently used his
position for the private and personal gain
If himself to the injury of the stockhold-
srs and bondholders of said company"
The bill AYERS that until tie appoint
nent of Mr.. Pepper as receiver for the
Delaware Company the defendent pre-
vented anyone save officers and directors
,f the concern from inspecting the ac-
count and books, though many attempts
we're made to do so by the holders Of {
'tock and bonds. The bill further AYERS
hat the defendant in conspiracy with :
he other officers and directors of the
Delaware Company contrived and ac-
,omplished the concealment of the acts
of.
Attention is here called to the fact that
n section six of the charter of the Della
ware Company provided that the direc-
ors should be elected annually by the
at such place and time as
he bylaws might designate, and that at
he annual or special meetings quorum
hould consist of stockholders holding at
east one-half Of the capital stock. In g
ection seven it was provided that ten t
lays notice should be given by publica-
ion in two newspapers of Wilmington. ,
.Wilmington Morning Nears. II
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/. CnNEESSEn MnRnER