The daily morning journal and courier., 1902-05-20
THERE WEIRD PROTESTS


 But the Steel Trust Votes to Convert
 It's Preferred Stock Into Bonds as
 Planned.
 New York, May 19.-A special meet ing of the stockholders of the United
 States Steel corporation held to-day in Hoboken voted 80 per cent. of the pre-
 ferred and 76 per cent. of the common stock to ratify the proposal of the di- rectors for the retirement of $200, 0,OoO 900 of preferred stock and issuing of $25O,- O00, ,000 of new bonds.
 c. H. Venner of Boston entered formal protest against the carrying out of the plan for exchanging bonds for preferred stock on the ground that the act of New Jersey legislature permit ting the exchange was unconstitutional and void. The protest was received and placed on file.
 George Fighter, jr., who said he rep resented holders of 1000 shares of stock protested against the proposed payment of per cent. commission to the underwriters of the issue of $25O,- 0O0, ,000,
 Samuel S. Strong of Providence said he wrote on May g to get copy Of the contract between the corporation and J. P. Morgan & Go. relative to the un- derwriting of the new bond issue. He failed to get prompt reply, but after writing several more letters he on Fri day last received copy of the contract. He moved that the meeting should ad- C., cn that all the stockholders might have chance to learn just what they were asked to vote on. The motion was lost.
 Chairman Cary of the executive com mittee said that he believed that the gentlemen who had made protests were actuated by proper motives. The exec utive committee, however, he said, had considered every objection that had been raised and had come to the con- clusion that the best interest of the cor- poration would be served by carrying out the proposition to ve voted on He said that the protestors represented only very small minority of the stock holders and he believed therefore that the plan of bond conversion should be made in justice to the wishes of the ma jority
 At the close of the stockholders meeting Chairman George w. Perkins, of the finance committee, made the fol- lowing statement:
 ''When we found it necessary to raise more money to complete and perfect our rlan we considered two proposi- tions. The first one was to sell s5O000.- 900 preferred stock This stock we IaI l,ay r,Jo at T,ot would have been an initial loss of $5,- ,000 on the par value. This new is- sue would also call for per cent. in- terest or sS50c,00O per year, and for every year thereafter The second prop osition was to sell $50,OoOOOO of second mortgage 5 per cent. bonds These bonds would probably have been placed at 95, and that would have meant an in- itial loss of s2, 5000O0. Neither of these schemes. seemed to meet the situation, and were therefore rejected. The third scheme was then considered namely, to raise $250 0,000,000 by exchanging $2O0- 000.000 of the per cent preferred for 1 an equal amount of second mortgage bonds and $50000,000 of such bonds for cash The interest at per cent. on $200, 100000 of preferred stock equais l $14000 0000 per year, The interest cn S250, 100000 second mortgage bonds at 5 | per cent would equal $12 100000 par | year--a saving of $1500,000 per year To carry this plan out commissions of 4 | per cent. would be required by the sym dicate. This would mean an initial ex- | pense of $10,000,0O0, but the third plan | provides for a sinking fund which | would wipe out the $10,00O0O0 cost in ! less than ten years and would provide | for the payment of the entire bond issue | in sixty years'
 Trenton, N. J., May 19-The United | States Steel corporation tonight filed with the secretary of state certificate setting forth the acion taken at a stock holders meeting to-day, authorizing the retirement of $200,0o0,0 900 of the pre- ferred stock of the company and the issuance instead of $250, GOO of five per cent bonds.