The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-05-24
ADDICKS GENIUS on FINANCE
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iha, tdtieks hsd ~ s3aliu~ I Frank tllee
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s"nnt0rahip from fIeiassse told everv'h'us
h" knew atotH Addicts Ne sfsafed noth'
ins thti woiiii sdhi w the otse aRninst hlFn,
III" evidehcr aEninsi Addhcka, s'i'nn't'
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Addichs was president NJ The Nav state
Uaa trniutnv and ~ ~ times drfninatrd
and cpntrrilri tho corporation Certeln
other inrn rNnei tho stock ~ y Fas Ugh,
"omfany whirh hal ~ dt-r,a hnt ita
charter n saa aRfsci lHtw"en Addicka
AMI tho others that . construction cnfn-
parv should hr organized ~ htdld y plant
for the ga light company that w" STOCK
~ tho construction company rhn,ild '"
issltel ~ full paid In exchange for the stock
If rho gas light company. and that the cnn'
struction Company stock should then be
divided bet wern them. M per cont. ~ Adj
dicks and ~ Ter cont. to tho others.
Addicks then cau~ri tho Ray state Gas
Company 20 lend Ia the construction corr
pany sIlO yN0 ont ~ which n plant was built
for tho gas light company. He then In
duced the hay State Gas Companyto nav
To- the construction company 81 030.00 In
cash In rsturn for an order calling for the
delivery Of 81 ,D0o 900 at par ~ the bonds
Of the gas light com pany tn he there
after issued. No bonds wore IN fact ever
issued bv tho Ras light company and had
they been issued they would have had no
tangible security other than the said small
plant.
He then caused the Construction Com
many TO sell all the stock of the Gas Light
Company 10 a second Gas Light Company
for 500 900 in cash and 81 .29S 600 Of the
second Gas Company's bonds, Of which
81, 2l5 900 were without the first four years
interest coupons
The Bay State Gas Company was induced
TO accept the 81, ?ls. 600 of bonds without
coupons Of the second gas company in lieu
Of the order for 81 600 900 of the first gas
company bonds. The Construction COM
pany returned to the Bay State Gas Com
paDy the $11O, OOO, but il had rever expended
in the enterprise more than $50 900. II had
therefore made a profit of 1920 goo in cash
and $50, 600 in the bonds of the second gas
company.
Prior TO the exchange Of the stock of the
first Gas Company for the bonds of the
second Gas Company Addicks had caused
the Construction Company to purchase
from his associates their shares in said
company at a cost of less han $50, 900.
The witnesses is declared, therefore, that
Addicks individually made a net profit Of
$500, 600 by selling worthless securities to
the corporation, of which he was president
and a director. The action was brought to
compel an accounting,
Addicks denies the charge that he looted
the Bay State Gas Company OF 81 500 900,
and declares that every cent he received in
stock deals involving that company was
turned over to its treasury. He said that
he could not give more specific Information
because his memory was not strong.