The Providence news. (Providence [R.I.]) 1891-1906, 1902-07-08
STEEL TRUST
IS PURSUED
Another Lawsuit Brought In
New Jersey Chancery Court.
CHARGES AGAINST MORGAN
Decision as 10 Right Of Converting Bonds
May Not Be Given Before Sep
tenbM Next
CHARGES AGAINST MORGAN

Trenton, July s.-A new suit against
the United States Steel Corporation has
been instituted In the Court OF Chan
Gerry 70 restrain the conversion OF pre-
ferred stock OF the corporation into bonds.
A rule 10 show cause was granted by Vice
Chancellor Emery at Newark returnaple
before him IN the same city on July lb.
TEMPORARY ORDER GRANTED.
A temporary order was also granted
restraining the conversion OF the pre-
ferred stock into bonds This suit was
brought by the same counsel that repre-
sented Mrs. Miriam Berger In the suit
now waiting decision I'm the Court or
Errors.
The new feature OF this suit Is that j.
Pierpont Morgan q Co. are made party
defendants All OF the directors OF the
United States Steel Corporation are also
personally named as defendants. the
suit is brought by Franklin W. Hopkins
and Allison r.. Hopkins. trading as Hop
kins Bros, ]. Aspinwall Hodge, Bernard
Smith and William II. Curtiss.
These complanants represent 26D shares
OF preferred stock, and 400 shares or
common stock. in the corporation.
Jtfcharged that the proposition TO con-
vert the preferred stock into bonds was
the result Of domination In the board
of directors OF the Steel Corporation or
]. T.. Morgan and other members OF the
firm OF j. r. Morgan a. Co., and others
who were allied with them I'm business.
1t is generally accepted here that the
suit was begun at this time TO antici-
pate any possible action by the Court or
Errors and Appeals dissolving the present
conversion OF preferred stock into bonds.
CHARGES AGAINST MORGAN.
The new bill charges that Mr.. Nor
gan was the controlling factor In the
making OF the contract whereby his firm
was 20 g-t 600 commission.
1t Is Do ted out that Mr.. Morgan, Rob-
ert Bacon, Charles Steele and George w.
Perkins q Co. and at the same time direc-
tors OF the steel trust, and that Mr.
Perkins is chairman OF the finance COM
mittee of the steel corporation.
II is asserted that at least 10 of the
directors OF the steel trust are either
members OF the firm OF J. +. Morgan a.
Co. or closely associated wi,n the firm
in business. and that without their votes
the conversion scheme could not have
been carried through.
II Is asserted that under the contract
with Morgan a. Co.. they were 10 fur
nish only 500 000. 900 in cash and sell IL they
could $50 100000 additional OF the bonds.
The payment OF $4,000, 900 for doing tins.
Il is charged. is exorbitant
DECISION Is FAR AWAY.
There is no likelihood OF any decision IN
the Berger suit involving the right OF the
United States Steel Corporation 10 con-
vert $500. 100000 of its preferred stock into
bonds, before September. The Court OF
Errors and Appeals constituted It's irst
general conference at 1880 o'clock yester-
day afternoon, and in the absence of Chief
Justice Gummere and Justice Van Syckel.
who sat in this case, IL was not consid-
cred.
The next regular conference will not
take place until September. and In the
absence OF any extension looking toward
the calling OF the court together at any
earlier date 1t is not likely that this wiIl
be done.
Most OF the justices and judges are
about to go on their vacations. and the
court will In a few days be so wideiy
separated that only the most urgent nec-
essity would induce their calling OF u
special conference.