New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-09-12
STEEL ARGUMENT ENDED
VICE CHANCELLOR EMERY GIVES TWO
WEEKS N WHICH TO FILE BRIEFS
pFCTSTON RESERVED.

the argument before Vtce-ChanceHor emery At
Newark in the Of the proposed collNttSIo %
5000 GOO 600 preferred stock Of the CnI'ed stats
steel CORPORATION into equal amount OF ooIuS
=, 3 ,er cent was ended yesterday afternoon The
r,lainftT has asked for rule to show cause Why d
temporary injunction should not be issued 70
r,revent the directors from carrying out Ihe oea''
Frank Bergen, o. Elizabeth. of counsel Tor tnS
,.,r,t., Who hogan MS argument late On Wednes-
azv finished i yesterday. Mr.. Bergen riolcuieo
the estimate Of value Of the company's properly
lie sale:
They profess TO gnderr9tie the value of ana fore
closure a. LS 30 ia ASH for a loan Of $50 900 to
b seo oS nv bonds and mortgage the richest
portions Of the earth Ihey say Ian and yet
thew admit the fact that the price OF the preIetf
stock has dePneciated : ReT 9e ted 0D
Certain gentlemen owning preferred stoek - }ei~
t for bon5s Cor reasons which they 90 i no.
state. The, know that they G1nFI Iies having
rcnC appearance of fairness toward all ne ~
ers 81 P5eIeTd sSGeh and invite the other stock
holders TO into their gided Psba eTn out The
crcuiar issued seems demonstrate that u Is -
their interest to stay out
There was not = word before the court li.
Bergen said 10 show that the firm OF ! 4 MOI GO
2 CO or anv member Of the syndicate ever Put-
chased a single share Of stock 10 enaoeT 'il-N
perform their part Of tbs syndicate
will not ask your honor 70 decide IN ms ,, Gs
whether mammoth corPoraq i Hs.@nsa6le to the
%,elfsre nerhaps 10 the existence, OF the Hud r11
rae h "a il is monopoly and ask court OF
eaiiitv TO accept and approve that VALUATION
q V Isndaburv. for the plaintiff. said that ASIDE
eror, the main issue set forth in the brie1 OIL 'e
-ssa.. oxtan5ea argument had been heard IN
VI. Bergen suit and ne assumed Onat '1io
court would not consider the question NV
thai issue as it was now before the Conr' y AP
cole for f7nal decision Mr. Lndabury read from
=
,o.nts made by the compainants In that SUIT W.
identical with the arguments advanced oS ''-e P-0
Mrs counsel in the present SUIT
Charles L. Corbin, for the defendants spun Pr
,icularlx on the contract with the hrTn o. .
Aorpan e. Co Nj Corbn cited authorizes Up
holding the right of directors 10 accept COMP
ton as selling agents for the corpoi rs t -
,-enrssert In regard 70 the Limitation III TIC ~
tract restricting the stockholders TO ~ per cen -
- s-oornt Of their stock holdings in the BOND
issue Nj Corbin directed attention 10 lhe 20. -
that the circular issued to the stockholoers siN
,ha+ the offer for subscriptions was hlltea -
sixty DAYS The books were fun OF oecasloha ~
holding the right OF directors in such cases.
1-,ca-Chancelor Emery interrupted by saying
ct may be pertinent for ne to inforrn c0uI.Se 10
On the question raised shall in no event Issue IN
order" .o ..a
Robert H. McCarter. OF Newark then MADE the
-Ios,rg argument He made the point that not one
az the Individual directors on his own oalh haN
undertaken specifically to swear TO the oeniaIs
contained in either of the answers except pe.f-'
c. W. Perkins.
Mr. McCarter attention 10 the fdct ciiai 80"
and proyed that large number Of the ossenty
stockholders to the scheme were brokers' VIZ
no beneficial interest in the stock II ths l." .
Of this allegation the defendants salo holhs' Aio
therefore admitted its truth The circular ls'ueu
implied that the entire s400oaco was unoeT"ii'el
and that the company sure OF securing tA4'
necessary sum at once The resolutions were NO
sent In fun, but only the substance OF part OF
them go that il any Of the stockholders shouio
see the contract its glaring departure from the
terms of the resolution would not be manifest
The contract itself was not sent and there was
no possible reason for sending it, but many
could be imagined, OF winch wac ile lacI
that its terms in any and every particular were
al subject alteration 10y the syndicate nhahSs
COMMITTEES. Other reasons would occur.
In the case of the valuation OF the company
property Mr.. NcCarter contended that any doubt
should resolve itself favor OF 8 preservation ol
rhe status quo until an examination upon ma
being may give opportunity Of investigation before
il was Mr.. Nc arter recited similar points
or yha e termed badges, or the fraud peTpe-
-rared rnon the stockholders m all the steps o.
the transaction, from its start to It's finish his re-
marks embodied the principal points Brought our
IN the argument and contained in the complanants
brief, and he made brief ana pungenl comments
on each point presented He dwelt for some time
on the ALLEGED risk that run. according TO MI
Perkins. by the syndicate in the locking Up OF
of securities, and sought 10 show that the
period Of locking up only thirty days. MI
1ected from risk
The Vice-Chancellor gave the counsel two weeks
IN which 10 exchange ard file briefs and reserved
decision.