The age-herald., 1902-03-27
STEEL TRUST BILL CHANGED IN SENATE New Jersey SOlons Disagree on
 Corporation Law RECALLED FROM THE HOUSE Change of Preferred stock to 6ends Can Only 5e Done By . Two
 thlrds Vote of steoIe-
 hoidefe.
RECALLED FROM THE HOUSE

Trenton, N. J., March ee.-AIl of the morning session of the Senate, and par tioually all of the afternoon session of that body, was taken up with discussion of the so-called steel trust bill and re- suited in the bill being recalled from the House and materially amended by the Senate The amendments are practically those that the promoters of the Dill hao agreed should be inserted in the Dill py the House committee on corporations. In the Senate this morning Senator Huds- peth moved to have the bill recalled from the House. Senator Johnson was In the chair and when the necessary eleven votes for Senator Hudspeth's motion had been obtained, but before the result oi the voting was announced, Senator MIG Garter moved to adjourn. Senator Huos' peth raised point of order that tho roi call was in progress and that motior to adjourn was not in order. He was overruled and the Senate was adjourned on vive voce vote.
 Demanded Announcement.
 At the afternoon session Presiden Francis resumed the chair and MT. Hud speth demanded an announcement of th' result of the vote on his resolution al the morning session. Senator Johnson'f ruling had created such feeling thai the friends of the bill thought It best not to oppose Senator Hudspeth's reso' lution any further and Senators McCartel and Reed changed their votes and agreed to the recall of the resolution from the House. Three amendments were offered by Senator McCarter. They provide thai the change of preferred stock of corpora tions into bonds should only be done with the consent of two thirds in interest Of each class of stockholders, both common and preferred, who should be present in person or by proxy at a properly called meeting; that the change from preferred stock to bonds can only be made in eases where the preferred stock has paid divi- dends for at least one year and that the change could be made only in those cases where the companies assets equal the amount of preferred stock issued and outstanding.
 Amendments All Agreed To.
 These amendments were all agreed to and the bill was ordered to the third reading Senator Hudspeth charged that the bill, as 1t was originally drawn, would wipe out provisions in existing corpora tion laws which was there to protect stockholders. The plan of the trust to substitute bonds for it's preferred stock, he considered, was detrimental to the holders of their common stock. It would add, he said, $25O 0oo,OOO to the bonded in debtedness of the company, and should these bonds be foreclosed at any time the common stock would be entirely wipec out.
 MT. Hudspeth criticized the manner ir which the New Jersey Legislature was willing to pass laws to accommodate trusts who are not satisfied with the New Jersey corporation laws as they found them. Senator Reed said the substitution of 5 per cent bonds for 2 per cent pre- ferred stock would lessen the fixed charges of the company, and that instead of the common stockholders being in- jured they would be benefited.