New-York tribune., 1902-05-20
STOCKHOLDERS PROTEST.
BUT [. : STEEL CONVERSION PLAN IS
CARRIED By OVERWHELMING MA
JORITY-DECLINE IN STOCKS.

a special meeting Of the stockholders Of the
United States Steel Corporation was held yes
terday President SChwab presiding. at the New
Jersey Office Of the corporation. in the Hudson
Trust COmpany's building. in HobOken- The
meeting had been called 70 consider resolutions
adopted by the directors at a meeting on april
l relating 10 the retirement OF S2eoOoeOS OF
preferred stock and the issuing OF S2joOoo,ooo
Of new bonds and 10 the contract between the
steel corporation and J. P. Morgan & Co in re-
gard to the underwriting OF the new bond issue
These resolutions were approved by over
wheming vote
As soor the meeting had been called TO
order George Denim. a lawyer who said he
represented a large number OF stockholders.
made a protest against the holding OF the meet
ing. declaring that il was unconstitutional Ths
protest was entered the minutes Mr. Denim
served notice that all stockholders represented
by him would take no part in the meeting
Samuel s. Strong OF Providence r T.. pro-
tested against the issuing Of $3.50 100000 os new
bonds and the retirement OF S2OO.O0O.Oo0 Of pre-.
ferred stock He said he wrote on May 9 10
get a copy of the contract between the corpora
tion and ]. P. Morgan & Co. relative 70 the un-
derwritins of the new bond issue. He failed to-
get prompt reply. but after writing several
more letters he received answer last FRI
day and copy Of the contract He said hs
believed that good many stockholders who had
sent proxies 70 the meeting had never had any
opportunity see the contract. In view OF thess
circumstances he thought IL only right that the
meeting should be adjourned for one month 90
that all the stockholders might have a chance
70 learn just what they were asked TO on.
and he made motion 20 that effect. The mo-
ton voted down
The holders of preferred stock have the right
10 subscribe for the new bonds 70 the extent OF
~ per cent Of their present holdings OF pre-
ferred.
THE VOTES FOR AND AGAINST.
The vote in favor of the resolutions ernbody-
ing the conversion plan was g. 40 731 shares oc
preferred stock and 1856. .551 OF common stock
The vote against the resolutions was 4sss5
shares Of preferred stock and 1913 common
stock The meeting adjourned until June g.
George W Perkins. chairman of the hnancs
committee made the following statement at tha
close OF the meeting:
When We found il necessary 70 raise more money
U2o5osIe8 fg ana eet & our our plan We e9aSldssea G S.o
preferred sJock This stock We could probably
29s 9 o. .s $500 @ @ en- me par ys1s Eis 2ew ss.s
rer 80 - - - .Is-a.sr % --r
ond proposition was e sell Soooo9o Of second
R have meant an initial iSs loss Of 8 % s Neiths2
both were open 10 criticism
THE THIRD SCHEME CONSIDERED
The & thEd So scheme s was then e9ns,asEsd namely
per cent preferred stock for an equal amount OF
per cent second mortgage bonds and &o0te.0,o OF
seOdo0OoO Of preferred stock equals sI4ocdso year
The interest $50 0s,0to second bonds
per cent would equal Sl25tst00 year. saving OF
oS Of per cent to aSa SaF be sR rsr Rd By 9g' the 9yn
This would initial expense OF
fund which would wipe out the N0OeeCaS cost in
less than years, and would provide for the pay
nlent OF the entire bond issue in sixty years.
DROP IN STOCKS.
Rejecting the general feeling among the IN
vesting public OF disapprOval OF tae preferred
stock conversion policy OF the United States
Steel Corporation. the shares Of both classes
declined yesterday on liquidation by investors
and heavy selling by important Wall Street
operators 10 levels lower than had been pre-
viously reached since 1900. and the curb
the new bonds. when issued also sold or
several points 10 the lowest figure yet recorded
for them The bottom prices for the stocks.
3S&4 for the common and ~ for the preferred.
were touched at about l o'clock. The common
closed 3Fis. a net loss for the day OF Il per
cent and the preferred al 81 a net decline OF
day az 96 bid, 9Sla asked. sold down yesterday
from N6 10 -. dropping = point at sale. but
rallied 93l. at the close The total sales
were less than 100000 par value. Theses
bonds. when brought out a few weeks ago in
the curb" market. sold between 90 and S9ls-
Trenton y J. May 10 (SpeciaD-The United
States Steel Corporation fled a certificate IN thu
Secretary Of States Office here tonight setting
forth the adoption by the stockholders at to-
5000 OC0d.O OF the preferred stock and TO iszus
500. 0tNOsD in = per cent mortgage bonds The
fling Of the certificate is 10 enable the company
70 take advantage OF the act OF last winter per-