Evening journal., 1904-04-29
TURNED NOTHING
into MILLIONS
Continued from First Page)

controlled the affairs, business and ac-
tions Of the said company for the pri-
vate and personal gain, profit and pur-
pose Of the defendant Addicks himself
and such others as he desired to benefit
and TO the injury Of the said company,
its stockholders and bondholders.
Following this general charge Re
ceiver Pepper at great length reviewed
an OF the many deals I'm which Addicks
and the Bay state Gas Company fig
ured and pointed out that each trans
action netted the billion dollar corpora
tion loss, and j. Edward Addicks, its
guiding genius, a generous profit.
on the stand Addicks unblushingly
confirmed nearly all Of the essential
statements made by Receiver Pepper
and asserted that his every act was
taken upon the advice of counsel He
blandly advanced the proposition that
because a transaction was immensely
profitable it was not necessarily irregu-
lar or. further, if it was even proved
unusual or irregular it was not of me-
cessity unlawful and still further. If it
was found to be unlawful and it could
be proved that competent counsel
learned I'm the law was consulted it
How the Baby Was Created.
Harklng away back to 1885, Addicks
recalled the night Of February Q that
year, when the aldermen Of Boston
breathed life into his first Bay State
Gas Company it being one Of many.
Mark it, the Bay state Gas Company
of Delaware is the 81 600. .000. 900 concern
and the one now before the court with
Addicks 1t was this Boston franchise
that ultimately gave birth to the Bea-
con Construction Company and figures
as the original structure erected upon
the foundation of paper, wind water
and gas built by Addicks Recalling
without the use of memorandum. every
detail of scores of deals involving mill
lions and finally $1,O0OOOO,O00. Addicks
yesterday traced the history of the
Beacon Construction Company from the
date of its charter up to its final trans
fer sale or merger to the Bay State
Gas Company and Indignantly denied
that IL was merely "a proposition on
paper, when he had his puppets i'm the
directory Of the Bay State Gas Com
pany vote S75,0O0,00Q stock for its pur-
chase.
Assumed Personal sponsibility.
With sublime assurance Addicks ad-
mitted that he inspired and directed
every act of the board over which he
presided, and without turning a hair he
assumed personal responsibility for
every act taxed against the board as a
whole
Five groups OF transactions figure i'm
the present case, all Of which combined
illustrate how Addicks. with absolutely
no capital or property other than a
comprehensive charter, so manipulated
the Bay state Gas Company of Della
ware, the Beacon Construction Com
pany and the scores Of lesser concerns
created as paper feeders for them, as
to yield him profits amounting to as
much as SiCOOOO0 at a clip and in all
about $4,000 600. il does not appear
that anybody else shared to any serious
extent I'm these profits.
I'm his testimony Addicks admitted
that the Bay state Gas Company on
some others Of the concerns dominated
by him furnished an of the contracts
executed by the Beacon Construction
Company He described the wheel
within-wheel system by which every
penny earned by this concern eventu-
ally reached him directly or fell into
the treasury of some paper corpora
ton within his control; but he did not
recall even one deal that brought profit
to the good-faith stockholders of either
the Beacon Construction Company OF
the Bay state Gas Company