Evening journal., 1904-01-12
Summary of Charges

Briefly summarized, the more severer
of the charges against Addicks are;
FYaudulently diverting several million
dollars from the treasury of the Bay
State Gas Company Of Delaware.
Abusing his powers of control of the
affairs Of the company so that he might
use its funds for his own personal pur-
poses.
Depicting, in this manner, the assets
of the company so as to render it incap-
able Of earning income with which to
pay interest on its issue of income bonds
or to pay dividends upon its stock.
Connivance and conspiracy with other
officers and directors of the Delaware
company to conceal from the public and
the stockholders the fraudulent acts
committed.
Procuring changes in the conditions of
advertising annual meetings, so that no
knowledge Of the meetings might reach
the stockholders generally.
Using at several of the meetings of the
Delaware company proxies which had
been given to be used at prior stock
holders meetings.
Selling to the Delaware company for
100000 in cash bonds of the par value
Of S3oo,ooo, but known to him to be
worth not more than 100000.
ApprOpriating 100000 Of the money
Of the Delaware company in one trans
action.
Retaining and appropriating to hi:
own use first mortgage bonds of the Buf
faio City Gas Company of the par valu,
Of $4,000, the property of the Delaware
company.
Causing the Delaware company to re
imburse him to the extent of $4,000 OF
account Of a judgment for the payment
of which the company was not liable.
Causing the sum of Ss,IIs to be paid
out of the funds of the company in pur.
chase of the right to vote certain stocl
and voting the stock for his personal
ends and in order that he might contro
/ the meeting.
Connivance and conspiracy with Other
officers and directors, and with Lawson
/ Weidenfeld & Co., Of New York and Bos
ton, to divert funds of the DeIawar,
company to Lawson, Weidenfeld & Co.
Rented Offices in the Drexel Building
in 1880 for his personal use, and sent tC
the Delaware company a bill for srr,4os
which was subsequently paid from tn,
funds Of the company
Rented Offices on or before March I
1895, for his private purposes at No. 6,
Broadway, New York city, subletting ;
portion TO the company and collectin,
from It Szoo month. That on or abou
November 10, 1896, he presented an addi
tional bill for S3s35.ss, which was pai,
out of the funds of the company.
Kept for his own private and persona
uses S75,473.62, from the proceeds OF tn
sale Of S37,ooo in bonds belonging to tn
Delaware company.
When the bonds were selling some
times as low as SO per cent. Of their pa
value, Addicks "wrongfully, and i
fraud Of the other holders" caused Sass,
go to be paid for bonds aggregatin
Sz57,ooo in par value.
In connivance and conspiracy wit
other officers of the Delaware compan,
and Lawson, Weidenfeld & Co., who ha
been appointed fiscal agents, diverte
funds Of the company to Lawson, We
denfeld & Co.
In 1896 Addicks procured the passag
of resolution to. pay Lawson, Weider
feld & Co. S5oo,ooo for services, half (
be paid at once, and the other half whe
the Delaware company should have a,
quired certain stock in the Brookiin
Gas Light Company. That on May a
800, the first instalment was paid, an
that on October 81, 1896, although III
company had not acquired and never di
acquire the Brookline stock, the d,
fendant caused the Delaware company I
allow Lawson, ,Weidenfeid g. Co. cred
for the final instalment Of Sz5o, 900.
Caused the Delaware company to Sc
to Lawson, Weidenfeld & Co., for $500
notes of the Massachusetts compan
worth in the market SI5o,ooo."