The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1902-09-06
STEEL TRUST CASE
GIVEN A HEARING
Suit Brought to Prevent the
Retirement of Bonds
LAWYERS ASK DISMISSAL
Attorneys for steel Company Say They
Have Already Made Sufficient
Showing to Have the Case
Stricken From Records.

Newark N. J.. September 5.-vice-
Chancellor Emery gave a hearing today
in the suit brought by ]. Aspinwall
Hodge and others for an injunction to
restrain The United States Steel corpora
ton from, carrying out its plan to retire
5000. 900 600 Of preferred stock and to issue
s25O. 600 900 of per cent bonds.
r. V. Lindabury of counsel for the de-
PENDANT moved for an order directing tho
compliments to come into court to be
cross-examined as to what prompted
them to brig the suit, as to who was
back Of It and as to the motive Of the
suit. and to be cross-oxamined on ques-
tons touching their stockholdings. lie
claimed that Bernard Smith anu w. II.
Curtis, who are named as co-complain-
ants with Hodge, arc practically out of
the case, as they held no stock that had
not been voted for the bonding plan when
the edition was bought, and they were
acting for a third person-David H. La
mar.
Move to Have Case Stricken.
Mr.. Lindabury also moved for an order
to have the case stricken from the re-
cords of the court as an imposition. He
declared that he and his associate coun-
sci, William D. Guthrie and Charles H.
corbin were prepared to show by their
own afndayits that the suit was a black
mailing scheme and a conspiracy, with
Lamar as chief conspirator.
Mr. Lindaburs, then presented an afr
davlt of Joseph L corrlgan, a clerk in
the office of Gus7i11e, Cravath and Hen
derson. reporting a conversation he had
with James Il. Lancaster, who had made
an affidavit when the suit was brought
In regard to the valuation of the steel
plants. Lancaster, Corrigan averred,
told him that he had received 500 for the
affidavit not knowing it was to be used
in the suit against the steel corporation.
According to Corrigan, Lancaster claim
ed that Lamar told him that he would
pay him $3.50 per week to keep quiet and
$4,000 when the suit should be settled,
not later than November /, 1902.
Had Shown Enough Already.
Mr.. Lindabury claimed that what he
already hai SHOWN To tie eour was sbf-
| ficient for tie dism sal OF the csse.
Robert II. McCarter for the plaintiffs,
questioned the right of the court to us
HISS the case DIT me present stage OF
/ the proceeding.
Mr.. Lldabury argued in favor of the
/ courts right of dismissal and quoted
! several decisions in support Of his view
1 of the matter.
Mr.. McCarter In replying to Mr.. Lind
a bury characterized the structures re-
garding the good faith of the complain
ants as unwarranted aad uncalled for.
He declared that the time for making
the motion to dismiss had passed, and
that 1t was made to side track the suit
and to prolong the issue. lie then read
an affidavit by James II. Lancaster, filed
August 20, in which denial was made of
the allegations in the Corrigan affidavit.
Vice Chancellor Emery said the appli-
cations and motions made by the defend
ant involved important questions and
that he would make no decision without
/ careful consideration
ION the point that special investiga-
ton of the bona fdes of the case ought
to be entered into" said the vice chan
cellor, 81 shall withhold my decision un-
| til next Tuesday"
This postponed the hearing until Tues
| day