Omaha daily bee., 1902-09-06
HEARING IN THE STEEL SUIT
Counsel for Defendants wants the
PIaintiGs Brought Into Court
TO ne Cross-Examined.

NEWARK, N. j., Sept. 6.-vice Chaneel-
lor Emory gave a hearing today in the suit
brought by ]. Aspinwall Hodge and others
for an injunction to restrain the United
States Steel corporation from carrying out
its plan to retire 5000. 900. 900 Of preferred
stock and to issue $3.50. 600, 900 OF 5 per cent
bonds.
r. A. Llnderbury Of counsel for the de-
PENDANT moved for an order directing the
complainants to COM into court In order
to be cross -examined as to what prompted
them to bring the suit, as to who was back
OF II and as to the motive Of the suit. and
to be cross-examined on questions touch
ing their stockholdings.
In asking for the order he claimed that
Bernard Smith and w. II. Curtis, who are
named as eo-complainants with Hodge. are
practically out Of the case. AZ they held no
stock that had not been voted for the
bonding plan when the action was brought.
and that they we're acting for a third per-
son-David H. Lamar.
Mr.. Linderbury also moved for an order
to have the case stricken from the records
Of the court as an imposition. He de-
clared that he and his associate counsel,
William d. Guthrie and Charles II. Corbln,
were prepared to show by their own am
davits that the suit was a Matchmaking
scheme and a conspiracy, with lamar as
chief ccnsplrator.
Mr.. Linderbury the presented an am
davit Of Joseph Corrlgan, a clerk in the
office of Guthrie, Cravath & Henderson,
reporting a conversation he had with James
H. Lancaster, who had made an afhdavit
when tho suit was brought regarding the
value of the steel plants.
Lancaster. Corrigan averred. told him
NA.N - - eNOa -
not knowing It was to be used in the suit
against the steel corporation. According to
COrrigan. Lancaster claimed that Lamar
told him that he would pay him $3.50 per
week to keep quiet and $40, 900 when the
suit should be settled, not later than No
vember /, 1902.
Mr.. Llnderbury claimed that what he had
already shown to the court was sufficient
for tho dismissal of the case.
Robert II. McCarter, for the plaintiffs,
questioned the right of the court to dismiss
the case at the present stage Of the pro-
ceedings,
Mr.. Linderbury argued in favor Of the
courts right of dismissal and quoted sew
eral decisions In support Of his view Of the
matter.
Mr.. McCarter, in replying to Mr.. Linder-
bury, characterized the structures regard
ing the good faith Of the complainants as
unwarranted and uncalled-for. He de-
clared that the time for making the mo-
tion to dismiss had passed and that 1t had
been made to sidetrack the suit and pro-
long the issue. He then read an afidavit
by James H. Lancaster, filed August 20, in
which denial was made OF the allegations
in the Corrigan affidavit.
Vice Chancellor Emory said the applica-
t4ano apd r,oftone rooIo ~ Al.
involved important questions, and that he
would make no decision without care tul
consideration. ION the point that an Sn-
v~estigation Of the bona fdes Of the canes
ought to be entered into" said the chm.
c%ellor, II shall withhold my decision Until
next Tuesday" This postponed the hearing
until Tuesday.