Omaha daily bee., 1902-07-16
STEEL TRUST FILES ANSWER
Says Assets Amount to One Billion Four
Hundred Million Dollars.
STATEMENT OF CORPORATION PROPERTY
Mr. schwab M~aIntains that He f. In
Position to Know Actual worth
of Properties and AXE
Amdavit Accordingly.

NEWARK, N. j., July 15.-The answer OF
the United States Steel corporation to the
suit brought by ]. Asplnwall Lodge, VIII
liam II. Curtiss and Bernard Smith, who
asked for an injunction to prevent the
company from carrying out its bond con-
version plan, was filed today before Vice
Chancellor Emery. When the case came
up before the vice chancellor II was put
over until July %. The answer Is sworn to
by Charles M. Schwab as president. For
the first time since the organization OF the
steel corporation a detailed statement Of
the assets Of the properties OF the sub
sidiary companies is furnished. These as
sets, It is stated, included 400 producing
mills Of the value OF $500, 000, 900. seventy
Eve blast furnaces of the value of S4s, 000,-
900, iron and Bessemer ore properties Of
the value of $780, 0o, 900, coal and coke
properties OF the value OF 800, 900, 900.
natural gas fields OF the value OF $50, 000,-
900, cash in bank to the amount of sSe, 0Oo,-
900 and over $50, 900. 900 OF material in
process Of manufacture. The total value
II the companies property, including cash
and cash assets. Is placed at 81. 400, 900, 900
by Mr.. Schwab in an afhdavit which is part
Of the corporations reply. The companies
earnings are stated to be at the rate Of
more tha $40, 10000 a. year. A saving Of
$40, 000, 900 a year is credited to the ore
properties and It is estimated that the
ownership of transportation facilities saves
the company $40, 00O, 900 annually. The
earnings of the coal and coke properties
are stated to be more than 81. 900, 900 a
month
To Disprove Charge.
These statements as TO values and earn
H.. 1900 a. Ata-r1avA a AhA-1a
by the plaintiffs that Mr.. Schwab, the pres
ident and Mr.. Trlmble. the secretary, made
a false certificate when they certified that
in their Judgment the properties were
worth at least the par value of the preferred
stock after deducting all Indebtedness. The
corporation declares 1t has no knowledge
that Hodge is the owner Of 100 shares oil
its preferred stock, but admits that In
August, 1901, 100 shares Of preferred stock
were transferred to his name on the COM
panles' books. 1t is denied that William II
Curtiss is the owner of any Of the COM
pany's stock and 1t Is declared that Der.
nard Smith, the holder Of 200 shares of pre-
ferred stock, which was transferred to hin
on June 26, 1902. The conversion plan wal
agreed upon at a stockholders meeting OF
May 19. The answer admits that the con.
version plan includes a payment Of $40, 900,
UOV 10 y. r morgan q 20. IL uenleS ina
any of the acts contemplated will "worl
fraud or injury to the compliments, but
says that on the contrary such acts wher
consummsted will be greatly to the bench
CT the corporation and Of every stakeholder
The answer says that some Of the directors
are members OF the syndicate formed by J
p. Morgan & Co. to float bonds and tina
that fact was communicated to stockholderi
in a circular dated April II, 1902. 1t Il
further declared that the directors so inter
ested constitute a minority Of the board o
directors; that they were individually at tn
time OF the formation of such syndicate AM
now owners and holders Of large amounts
OF the stock OF the defendant corporation
and that they became parties to said syn
dictate aud assumed their proportion Of tn
liability thereof in order to assure the sue
cess Of the plan OF purchasing and retiring
the preferred stock. as they believed sucl
plan to be Of great value to-the defendan
corporation and its stockholders.