The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1902-07-16
SCHWAB TELLSOF ENORMOUS
EARNINGS OF STEEL TRUST
Values Companys Holdings at SI,400,29LO0
Net Profits Now $40 O00 900 Per Annnm.
Says Corporation Gould Continue to Pay interest Bonds the
Revenue Was Reduced Is Per Cent

n EWARK, y. J., July 15-The an
" swer of the United States Steel
corporation to the suit brought By
J. AspinwaH Hodge. William H. Cur
tiss and Bernard Smith, Who asked for
an injunction to prevent the company
from carrying out its bond conversion
plan, was filed today before Vice Chan
eellor Emery. When the case came up
before the vice chancellor il was put
over until July % The answer Is
sworn to by Charles NJ Schwab. as
president. For the first time since the
organization of the steel corporation
a detailed statement Of the assets of
the properties of the subsidiary COM
panies is furnished
These assets. il is stated. include 400
producing mills of the value of $780,
O0C.000; seventy-five blast furnaces. Of
the value OF S4S O0O. goo; iron and Bes-
semer ore properties. of the value OF
$700. 900. geo: coal and coke properties.
of the value of S1a0 COG, GOO; natural gas
fields. of the value of S20.G00.060; cash
in banks TO the amount OF SCI, 600. 600,
and over $S0,000.000 in process of manu-
facture
The total value of the cOmpany's
property, including cash and cash as
sets, is placed at 81, 400, GOO. coo by Mr.
SchWab in an affidavit which is part
Of the corporations reply. The COM
pany'S earnings are stated 10 be at the
rate of more than S140, 200, 600 a year.
A saving of $40, OO0, GOO a year is cred
tied to the ore properties. and it is es-
tlmated that the ownership of trans
portation facilities saves the company
$l0,OOe.O0O annually. The earnings OF
the coal and coke property are stated
IN 10 T1lopa thar, O00 600 u
These statements as to value and
earnings were presented to disproye a
charge by the plaintiffs that Mr.
Schwab, the president, and Mr.. Trim
bic, the secretary made a false GER
tificate when they certified that in their
judgment the properties were worth at
least the par value of the preferred
stock after deducting all Indebtedness.
The corporation declares that il has
no knowledge that Hodge is the owner
of 100 shares of its preferred stock, but
admits that in August, 1901. 100 shares
of preferred stock We're transferred to
his name on the company's books. 1t
is denied that William n. Curtis is the
owner of any OF the eOmpanys stock
and it is declared that Bernard Smith
is the holder of 200 shares of preferred
stock, which was transferred to him
on June 26, 1902.
The conversion plan was agreed upon
at stockholders meeting on May 10.
The answer admits that the conversion
plan includes a payment of $40. OOO, 600
TO ]. p. Morgan & Co. 1t denies that
any of the acts contemplated will work
fraud or injury to the cOmpIainants
but says, on the contrary, such acts
when cOnsummated, viii be greatly to
the benefit of the corporation and Of
the stockholders The answer says that
some Of The directors are members of
the syndicate formed by J. P. Morgan
& Co to float bonds. and that that fact
was communicated TO stockholders in
a circular dated April Il. 1902.
It is further declared that the direc-
tors SO interested constitute a minority
of the board of directors: that they
were individually at the time of the
formation Of such syndicate and now