Evening journal., 1904-01-12
SAYS ADDICKS LOOTED
THE BAY STATE GAS 90.
FOR PERSONAL USE
SUIT FILED BY RECEIVER SHOWS MIL
LIONS OF THE INVESTORS CASH DI
VERTED BY HIM AND USED FOR PO-
LITICAL PURPOSES
HIS CAREER IN THE FINANCIAL AND PO-
LITICAL WORLD DRAWING TO AN
END-HOW HIS CAMPAIGN MANAGERS
WERE PAID
LITICAL PURPOSES

Millions Of dollars were fraudulently
diverted by John Edward Addicks from
the Bay State Gas Company, of Della
ware, to his own pockets and private
uses.
This. in substance, is the Charge
brought against he notorious Gasman''
by the company's receiver, George Whar-
ton Pepper, in suits begun Yesterday in
Philadelphia, to compel Addicks 20 dis
gorge the funds belonging to investors in
the plundered concern. The receiver sues
TO recover between S3500,O00 and Si,-
100000
Never before in the history of rotten
finance were there such disclosures as
Receiver Pepper makes in the bills of
complaint which have been filed in the
United States Circuit Court for the
Eastern District of Pennsylvania. They
charge Addicks with astounding fraud,
the extent OF which in connection with
the gas company has never been even
conjectured by the public. In many re-
spects the methods of looting Bay state
Gas. as shown by the receiver, discount
anything before attempted.
Regardless of Expense.
As set forth item by item in the bills,
Addicks used the treasury of the $780,
100000 gas company as his privy purse.
paying for everything from dinner part
les to Legislature EXPENSES" out of the
company's funds. Doctor bills, lawyer
fees. travelling expenses, politics. Christ
mas present, cunning eNpenses-any
kind of indebtedness that Addicks could
incur was mot with drafts on the wide
omen traa sllrN
As charged by the receiver. Addicks'
methods OF manipulating the stock
Of the gas bubble - il had an
authorized capital OF billion dollars
were no less astounding. The stock and
londs Of the company and its affiliated
concerns were swapped and traded in ab
most countless deals, an Of which yieldg
streams of gold for the Gasman's prEer T.
The receiver sets forth one transmt N
in which Addicks, upon an original IN
vestment of 500 in cash, evolved the
tidy sum of S090.000.
Evidence of Nerve.
The ramiRcations of Bay state Gas
rs revealed by the receiver. constitlte an
endless network of fraudulent deals cen
tering in Addicks' absolute coni1ofbof tho
company. which was ptamed by delud-
ing stockholders and investors.
Outside the domain of fictiop there
never was such story of colossal fraud
and monumental nerve" as is opntained
IN the two bills which Receiver Peppers
counsel. W. B. Bodine. Jr., and +. b
earacken. have submitted 20 the court
Addicks' attorneys yesterday accepted
service in the suits. which will be push
ed TO early trial by the receiver.
Receiver Pepper stated yesterday; 81
have instituted these suits BECAUSE I be
lieve and have been advised by my attor
neys that they arc legally collectible
and / expect TO collect them
Item Of Expense.
Alleged exhibits frosn the company
books which arc given in the bill show
some interesting items of expense. in
cluding large bills for legal advice from
Charles H. kit1inger.
Orders were drawn for several thou
sands of dollars in favor of. Thomas w
Lawson for his salaries in managing The
sales of stock for hotcl bills and othcl
expenses. One order fqr his services dur
ing the year OF 1889 in experimenting
the sale OF the compahy's stock and leg
islativc matters was $4,000.
Another exhibit giving a statement o
pAnel0lllltr llANc llonl .lulluS. bi lh
company which were made 10 on for Ad
dicks. shows an item Of 100000 for lega
expenses incurred in obtaif1ng charter
Two Of the most interesting items O
expense and which are cit,hrouded il
considerable doubt. follow; p. +. Coop
ca opposing Legislature. Sl0O; l5. Z. Bon
ham. watching Legislature. - 80"
The eShibit shows that on April S
1850 George a. Smith was paid 81 .3OC
hut the nature of the servicn rendered j
not given. snother mysterious entry !
that on December Il. of the same year
W. r. Smithers, for Dover services, wa
paid 5000
Some other interesting entries Of ex
penses follow;
Travelling Expenses.
Charles II. Kittinger, April 25, ls9;
legal expenses. $500; May 4, ditto
81 900; May 6, ditto, $1,000; June ;
ditto, $500: October II. ditto, on ac
count, 81 ,0o0; balance, 81 900; Octobe
l6. 1897. travelling expenses for 30 DAYS
$500; October 20. ditto. $500; Dccembe
j.. ditto. $500; February %. 1898, bal
ancc travel TO March |, lS0S, S36J; Ma,