Evening journal., 1904-09-17
CAS-
DEALS EXPOSED
Former Bay State Company
Treasurer Tells of $751;
900, 900 Scheme
POSSESSION OF 100000 SHARES

POSSESSION OF 100000 SHARES
Regarding the transactions IN gas stoc6s
Of J. Edward Addlcks the Philadelphia
Ledger of today says:
Hon. j. Edward Addicks, Of DE aware.
became poss,s~Ni Of securities represent
ing S75.O0.OOO was explained yesterday
by william Miller. who for many years.
was treasurer of the now notorious Bay
State Gas Company OF Delaware. BY a
process OF elimination Mr.. Miller re-
duced a labyrinth OF iguros to few es-
sential tabulations and. having dismissed
various confusing transactions as mere
book exhibits, cut into the heart of the
matter and aid bare the deals within
deals which finally gave Addicks, for a
time. undisputod possession of 100000
shares of stock representing N5,OoC,0O0 at
par.
George Wharton Pepper. receiver Of the
Bay State Gas Company, Is hghtlng for
this stock in the courts. ana it was in this
suit that Mr.. Miller testified.
Tho hearing was before Charles n. Gull
bert master. who sat In the offices of
George l.. Crawford. private counsel for
Addicks. Mr. Miller was the only witness
cal ed only persons directly In interest
were admitted TO the room.
on the records it appears that nothing
is at issue but 1898 shares Of stock put out
by the Bay State Gas Company OF Massa-
chusetts Mr.. Miller showed how by
manipulation. this issue had been in
creased to 1898 shares. leaving only seven
shares out of 10000 outstanding in the
names Of the several Directors. an OF
whom. he said were controlled In their
every act by Addicks. lie explained that
this stock issue of 1898 shares was origin
ally made 10 take the place Of a mort
gage bond Of N5OO,OOO which had been
invaldatcd by what Is known as the Ly-
ford act, passed by the Massachusetts,
Legislature. Precisely what led to the
issuance Of the 1900 additional shares on
this account was not made clear, but the
total issue Of 1888 shares was located In
the possession OF the Massachusetts Gas
company the Rogers-Kidder-P Peabody
concern that now enjoys monopoly Of
the gas business IN and about Boston.
The Next Stage.
Passing 20 the next stage N the S2oOOoo,-
900 enterprise. Mr.. Miller showed how the
Boston Gas Light Company. controlled by
Add!cks. came into the possession Of the
Boston Gas Company the South Boston
Gas Company. the Roxbury Gas Company
and the Bay State Gas Company, Of Mus
sachusetts (an Addicks conccrnl, and how
al of these corporations were manlpulat-
ed ana merged under the blanket charter
Of the Bay State Gas Company, Of Dela-
ware, which at the time was owned out.
right by j Edward Addicks The next
forward step was the Incorporating of the
Bay state Gas Company of New Jersey,
which. Mr.. Miller, testified was created
! for The so,e purpose OF issuing what are
known as the Boston United Gas Bonds IN
the sum of S90ou.O0O. The BAY State Gas
Company of Delaware owned every shar,
OF IFS namesake from New Jersey.
The Bay state Gas Company Of New
Jersey, was given physical .possesson OF
AN the stock owned by Addicks and his
several minor corporations in the Boston
Gas Company. the South Boston Gas
Company. the Roxbury Gas Company and
the Bay State Gas Company. Of Massa-
chusctts Thus, by his ownership Of the
Bay State Gas Company OF Delaware, and
]
State Gas Company Of New Jersey, Adj
dicks became the actual owner Of AL the
underlying securities.
Fifty Year Agreement.
A fifty years trust agreement was eX-
ecuted to give value to the S9,0o0,OOO bonds
Of the Boston United Gas Company The
Mercantile Trust Company. Of New York
was named as trustee, and the late An
drew Moore. proprietor Of the Girard
House; the late Henry G.. Gibson samuel
Little and several others were let into the
underwriting syndicate. Sensational events
/ followed one another with great rapidity
but Addicxs was able to steer his barb
clear OF the breakers until 1902 when the
Mercantile Trust Company, as trustee
force osed under the terms of the trusi
agreement because of default in tn,
sum OF $4,000 and en- account Of contingent
claims approxlmatlng N,0000OO
In 1908 Kidder, Peabody & Co. and
Henry II. Rogers. Of the Standard Oi
Company, representing "A syndicate inter
ested in the Massachusetts Gas Compa "a,
bought IN az auction all of the underlying
securities named in the trust agreement
and standing hack Of the S9.O00.O0O Bostol
Il United Gas bonds. paying Al,VO.VW there
for. This purchase was recently CON
frmed by the high courts Of Massachu
setts. and, while this decree wiped on
every equity Addcks ana his Bay Stat
Gas Company Of Delaware had in tn
b underlying company itaiso released then
= from the obligations atfroNiinatng $1,000.
600, which with the ea4O0 item In dcfaul
e precipitated the forecnsure and sale.
n This sale finally forced the Bay Stat
. Gas Company Of Delaware into a receiver
/, ship ana one Of the first discoveries mad
n by George Wharton Pepper tho receiver
10 was. according 10 the testimony of MIR
j. Miller that Addicks had taken for nj
l. own. through the Beacon. CONSTRUCTION
l. Company. 100000 shares of the Bs.
state Gas Company Of Delaware. pa
S'50N,0o, for which, so far as the record
show, nothing Of value had been given.