Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1907-02-01
In the Famous Gas Suit
Against \. Il. Rogers.
Between 100000 and ST..
100000 to be Divided.
Judge Only Requires Word That
Rogers Agrees.

Boston, Jan. 31.-A compromise set
Element of the famous suit of George
Wharton Pepper, the receiver of the
Bay State Gas Co. of Delaware. against
Henry H. Rogers Of New York, to re-
cover profits of between 100000 and
100000 on account of the sale of sew
eral Boston gas companies was prac-
tically reached in the United States
circuit court today. The agreement
reached by both parties was submitted
to Justice Putnam, who, although he
stated that so far as he was concerned
There would be no trouble" declined
to give his formal assent to the settle
ment until he was certain that it would
not further complicate the litigation
by bringing in new parties. He stated
that something should be filled with
the court to show that Mr.. Rogers does
not object to this agreement and that
an amended petition be presented to-
morrow.
For several years the suit of Re
ceiver Pepper against Mr.. Rogers has
been pending in the United States
courts here, a subject of long and in
volved litigation. The purpose of Re-
ceiver Pepper was to secure from Mr..
Rogers the profits alleged to have been
accrued by Mr.. Rogers through the
sale of stock in the various Boston gas
companies. to interests representing
the New England Gas and Coke Co,
while Mr.. Rogers was serving as trus-
tee of the Bay State Co. 1t was claim
ed that by virtue of this trusteeship
he was enabled to make vast profits,
which Mr. Pepper contended rightfully
belonged to the Bay State Co.
Sometime ago Judge Putnam. who
heard the case, ruled that the defen-
dant, Rogers. was bound to make an
equitable division with the Bay State
Gas Co. of his profits in the TRANSACT
ton. and appointed Moorfield Story
as master to determine what these
profits were and how they should be
apportioned. Mr.. Story declined the
appointment and Prof. John {. Gray
of Harvard University was named III
his place.
Meantime negotiations for n settle
ment We're i'll progress and the result
of these negotiations became pubic
today. Attorney Sherman i. Nhippic
represented Receiver Pepper and APP
peared before Judge Putnam and rec
commended the approval by the court
of the settlement agreed upon.
Attorney Alfred Hemenway for the
respondent expressed willingness to
abide by the terms of the compromise.
Judge Putnam said:
Now, there is no trouble about TINS
so far as l am concerned. There Is
only one thing to be considered. l
have held MIR. Rogers to very risld
rule. rule so rigid that ordlnarliy
business men do not understand that
II APPLIES to their transactions. l have
had no doubt for many years that a
chancellor, any judge sitting as
chancellor, ought to apply this rule.
1t is a rigid rule, and l should not Ike
to make any order which would FUR
Their complicatc the litigation by bring
ing in new parties. Therefore, l need
something on file to show tIiat MI
Rogers does not object"
Judge Putnam also observed that ne
desired the petition I" state the faclS
with reference to the efforts OF the
receiver 10 dispose of the stock OF the
Buffalo Gas Co, and that order IN the
case should provide for the approval
of the courts in Delaware ana tne
Southern district of New YORK lie
added that he would hear the amenoeo
petition tomorrow.