The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1902-09-03
THE STEEL TRUST.
It Is Now Worth Over One Billion
Dollars.
EARNS HALF a MILLION DAILY.
The Figures Made in the Ah6davits
Are Skyscrapers. 1t Has e Sur q
plus Of Sixty-five Millions.

At Trenton, N. J.. Wednesday, the
United States Steel corporation fled
in the court Of chancery an answer to
the amended bill Of complaint Of J.
Aspinwall Hodge, Bernard Smith and
William H. CurtiSs, to restrain the
proposed conversion Of 5000, 900, 900 I
per cent. preferred stock into $780,.
100000 per cent. second mortgage
| bonds.
The answer denies that the books Of
the corporation show Curtiss to be the
owner of any stocks of the concern.
Smith, it is averred, did not own any
stock Of record until June "a, 1902,
after the plan Of conversion had been
adopted, ani that the stock now
recorded in Smiths name was voted
in favor CT the plan.
Hodge, it is admitted, owns 1G0
shares Of stock, but it is alleged that
he was not present at the stockholders
meeting when the plan was submitted
and that his stock was not voted either
by himself or proxy.
It is denied that fifteen or more of
the directors Of the steel corporation
are members of the syndicate through
which the preferred stock was to be
converted into bonds.
1t is admitted that some Of the dr.
rectors are members Of the syndicate,
but that this fact was communicated
to every stakeholder in the circular OF
April II, 1902, in the following words:
ITO further the success Of the plan
there has been formed a syndicate, In
Guiding some directors, who Ein re-
ceive four-ffths Of the 4 per cent.
commission to be paid under the con-
tract with J. P. Morgan s. Co., mem
toned in the notice Of stockholders
meeting"
The answer says that the directors
in the corporations are a minority In
the board of directors, but they are
large stockholders and favored the
conversion plan because they believed
it would be advantageous to them as
stockholders.
It is denied that any stockholders
had been offered special terms in CON-
nection with converting their pre-
ferred stock into bonds in order to Sc
cure their affirmative votes for the
plan.
It is denied that the $50, ZOO, 900 Of
additional capital which 1t was pro-
posed to obtain was needed for pur-
poses that were chargeable to the earn
ings Of the company.
The answer then takes up the line
of argument made in the affidavit OF
George W. Perkins, chairman Of the
finance committee, fled last week, IN
which Mr.. Perkins claimed that this
additional $50, 100000 was needed to
pay for Improvements and to give the
company larger surplus to permit it
to do a cash business and be protected
against a money stringency in the
event of business depression. The
answer says the earnings Of the cor
poration for the year ending March
81, 1902, were Sill, 1,603, ,054; for the
month Of April, 1902, sl2, 800, ,7e6;
May, s13, 12O,3 800; June, 1920, $50;
July, estimated at 81, 100000, or at:
the rate of $3.50, 100000 a year.
An inventory is fled to show that
the company's property is worth
81, 400, 900, 000-more than the COM
bined par value of the preferred and
common stocks. It is stated also that
the company's surplus is s65, 900, 600.
The answer emphasizes the point
raised by Mr.. Perkins to the effect
that the conversion plan would reduce
the fixed charges of the company and
be advantageous to all stockholders,
both preferred and common.