Evening journal., 1907-03-13
RECEIVER CLOSES
BAY STATE CASE
BORdhOIderS Of AddiCks Gas
Concern Will Be Paid
in Full
IN LITIGATION FOR YEARS

with the announcement that the bond
holders would probably be paid IN fun
outstanding debts 10 be satisfied and the
thousands Of stockholders to receive a
portion OF their money the three-years-
long litigation over the bubblo-lllSe Bay
State Gas Company. Inflated 10y j. Ed
ward Addlcks. came to an end yesterday.
All that now remains is approval by
the courts Of Massachusetts and Delaware
Of the report Of George Wharton Pepper.
tho receiver OF the concern. and then a
distribution Of the 100000 which he coll
lected. This viii wind up financial litiga-
tion which, in point Of duration and for
evidences Of magical stocks juggling. has
rarely been equaled in the United States.
When il Is stated that the Bay State
Company was chartered with an author
ized capital OF 100000; that this was tn
creased TO no less than s1OooOoo.oOO and
stocks to the extent Of s250OOO.O00 were is-
sued, prporung to be full paid and nom
assessable, the colossal character OF Ad-
dicks scheme can be realized.
When it is added that the heavy capi-
talization led thousands upon thousands
OF persons an over the country to sink
their fortunes IN this consolidation OF the
big gss companies Of oBston and several
other cities. and that the concern coll
apsed like punctured balloon, the havoc
wrought by it becomes plain.
Three years ago. when Judge Dallas.
sitting IN the United States Circuit Court
IN this city. appointed MIR. Pepper receiver
of the Bay State Gas Company after
there had been long fight between
Thomas W. Lawson. H. II. Rogers and
Addicks. an inventory Of the assets and
liabilities Of that concern revealed the
fact that there was exactly 5000 at hand
to offset liabilities OF many millions Of
dollars
There were some debts that had to be
satisfied by the receiver before an ADJUST
ment Of the affairs Of the bondholders
could be begun. There was one deficiency
of Ss000Oo that had to be satisfied at once.
with these odds against him, the receiver,
with the aid of his attorney, Francis b.
Braclzen, plunged into the legal labyrinth.
Suits were begun againt Addick, Rogers
and Lawson. Addicks was charged with
initiating the stock issue to the point where
: It's face value was sl90O00,000 At the price
to which ne forced the stocks they were
purchased all over the country. Tho stock
holders are spread over tho United States
from Maine to California.
II. II. Rogers. Il was charged. had
further juggled the stock when he was
acting as trustee Of four gas COM
panies OF Boston, controlled by the Bay
State Gas Company. lawson, accord7
ing TO Addicks, was curb broker in
Boston when the Addicks- Rogers CO.
terie took him up and made him the
J official Bay State Gas broker. Receiver
% Pepper. in the suit against lawson. al
lleges that he had retained valuable
portions OF Bay State stock
Setn ements We're secured by the re-
ceiver in all three suits. Addicks gave
up about S6O,OOO taking mortgage on
his house TO do so. lawson turned over
s350OOO II. II. Rogers raised the ante
and settled for no less than $500, 600.
= Another settlement Of N35OO0 in a suit
, over Trenton Water Power stock
brought the sum I'm the receivers hands
o to the total of about S2.O00.0O0. There
b was also the 5000 which the receiver
started with
J One More Addioks Suit
There still remains one more suit
. dEdinel ANulthef huL IL was utNlAtN
yesterday that the settlement should
proceed at once without regard TO this.
The receiver has little doubt as 10 the
outcome Of this second suit against
Addicks. Mentioning It as the one un-
finished end of the tangle, Mr.. Pepper
has filed his report with the Massachu-
setts court in whose jurisdiction most
: of the S2.00O0O0 was collected. This
:
in the next few days. Mr.. Pepper viii
then be authorized 10 deduct the cx-
penses Of litigation and instructed TO
J turn the balance over to the receiver
3 appointed in Delaware.
The receiver in Delaware Is the same
, as the one i'm Massachusetts. so Mr..
, Pepper will turn the money over 10
himself and then file another report
with the Delaware court. Then there
will be an open hearing either in
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