Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-10-20
Sensational Developments In
the Massachusetts Gas
Merger Investigation
RockEFELLERs MADE PROFIT
Brother of John D. and H. n. Rogers
Got ss,5so,ooo for Their Share in
Financing the Deal-The Develop
ments Cause Sensation In Boston
Financial Quarters.

Boston, Mass, Oct. 20.-It has devel-
oped for the first time that William
Rockefeller, brother of John u. Rock
efeller, financed the deal by which the
Boston gas companies were co5lsolidal-
ed dight years ago and that he and
Henry II. Rogers, who has alw avs been
looked upon as the inside man in the
deal, each received $3,560,000 Profits. A
big sensation in financial quarters fol-
lowed.
The profits in the deal can e out III
the testimony adduced at secret hear
ings before Causten Browne, master
in the famous $3,000,00O suit against
Henry III. Rogers brought by Receiver
George w. Pepper of the Bay State Gas
Company of Delaware. The hearings
have been held frequently during the
past year but the public was excluded
from them.
The plaintiff alleged that H. H. Rog-
ers received from the New Eng land Gas
and Coke Company s3,O00,000 in addi-
ton to the amount stipulated by him
for the sale of his interests in the Dor
chester and Brookline gas companies
for the delivery of the management and
control Of the Boston, South Boston,
Roxbury and Bay State Gas companies
Massachusetts corporations) into his
hands, and the plaintiff further claimed
this $3000,00O belonged to the Bay
State Gas Company of Delaware under
a trust agreement.
Reports Shows Testimony.
The master fled with the clerk Of the
United States circuit court his report OF
the testimony. covering $500 typewrit-
ten sheets, but he did not enter find
ing, and 1t is presumed this will fol-
low.
The masters report shows that Mr..
Rogers was examined by Lawyer AL
fred Henmenway and cross-sxamined
by Lawyer Sherman L. Whipple. Ac-
coriing to the report, Mr.. Ros ers stat
ed that in November 1897, he owned
1880 shares of Brookline Gas Com
pany stock, 5,716 shares OF Dorchester
Gas Light Company stock and that he
owned or controlled $1,615.00l of the
Indebtedness of the Brookline company,
also $1,000,000 worth Of first series
United Gas Companies bonds
FIe said he gave an option on these
stocks and bonds to the Cent al Trust
Company OF New York, and that he re-
ceiyed check for $s,06S,1O bonds of
the New England Gas and Coke Com
pany of the face value of $1,000 900 and
4,0D0 shares of stock of the sane COM
pany in payment. The payn ent was
made on December 10, 1895, and A. G.
Burrage conducted the preliminary me-
gotiations. He said that he was still
a trustee Of the Bay State Gas Com
parry of Delaware and has always held
control of the New Jersey corporation
Of the same name.
Rogers Memory Bad.
On cross examination the same fall
ure. in memory which was noticed in
the suit tried in open court about a
year ago developed, but Mr. Rogers
was forced to acknowledge his profits,
although he was evasive to 9. marked
degree.
Mr.. Rogers stated that he gave an
option to Henry NJ. Whitney Of securi-
ties which he then held. Mr.. Whipple
asked him is he did not understand
that the option was given in reality to
the Delaware company and that Mr..
Whitney was to deliver it over as soon
as he received II, and Mr. Rogers re-
sponded that he did not remember. He
also said he did not understand the
significance of the negotiations con-
Quoted by ]. Edward Addieks and
Thomas w. Lawson in behalf of the
Delaware company when they followed
so closely the option given to Mr..
Whitney.