New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-09-27
OPINION IN Z. S. STEEL CASE
.JTSTICE VAN SYCKEL GIVES THE
GROUNDS FOR DISSOLVING IN
JUNCTION AGAINST THE
CORPORATION
fry TELEGRAPH TO THE TRIBUNE

Trenton Y j. Sept. 26-The grounds which
the Court of and Appeals last week dissolved
the Injunction granted by the Court OF Chancery
restraining United States Steel Corporation from
converting S2oOc0N0 of preferred stock into bonds
we're announced at a conference of the court to
day The announcement made by Justice Van
Svckel who has been assigned to write the opinion
as a guide to the Court OF Chancery in the pending
litigation against the steel corporation by showing
what points have been decided by the higher court
Justice Van Syckels announcement was filed later
with the Secretary OF State as memorandum opin-
ion. 1t follows:
stated cause is reversed and the injunction dis
solved. This court holds that the method adopted
by the board of directors. and approved by two
thirds vote of stockholders for retiring preferred
constitutional and that the scheme for retirement
of stock adopted by the defendant company is also
act. am instructed by the court to make the
above announcement because Sc other cases are now
same questions litgated
reasons upon which the decision Of the court is
based as have time to prepare it,
The opinion regarded with much interest IN
the corporation department. where 1t is believed
that no possible doubt exist the
complete victory of the United States Steel Cor
poraton both in the Berger suit and the litigation
now pending. AS the decision indicates. the Court
of Errors finds authority for the conversion in two
legislative acts and declares constitutional the act
Of last winter under which specific authority
given for the conversion the lines suggested
by the directors and ratified by the stockholders.
The seems to have gone even further than
was generally anticipated here when its decision
was announced IN sustaining the method of con-
version under both the act OF last winter and the
General Corporation of 1896. When the case was
heard before the Court OF Errors and Appeals r V;
bury. counsel for the steel corporation, relied
largely in his argument upon the act Of 1885 putting
much less upon the act OF 1902 than IN the
argument before the lower court.
1t is believed here that the full opinion. when
prepared. will follow closely the line of reasoning
OF Mr. Ihndabury's brief this much being indicated
by the memorandum filed to-day.
The opinion OF the Court OF Errors and Appeals
in the Berger case was naturally gratifying TO the
United States Steel Corporation management whose
course has been approved by the all
the points raised in this suit but they declined yes
terday afternoon discuss the IN any OF its
features The Steel stocks unaffected. While
some OF the points involved are found also in the
Curtiss- fiodge-SmtH litigation, mere have been
raised the latter action additional questions
among them allegation of fraud and. as far as
be learned the plaintiffs in this action have not
receded from their decision not to abandon their
suit in consequence of the decision faYoring the
steel corporation in the Berger case.