The Montgomery advertiser., 1902-07-16
ASSETS OF THE SMPANY
President Declares Them
Worth ST, 400, 900, 900.
Under the Conversion Scheme, which
is Being Opposed, ]. P. Morgan
and Company are to Re-
ceive 100000.

Newark, N. J., July 15-The answer Of
the United States Steel Corporation to the
suit brought by j. Aspinwall Hodge, Jr
William Curtis and Bernard Smith, who
asked for an injunction to prevent the
company from carrying out Its bond con-
version plan, was flied today before Vice
Chancellor Emory.
When the case came up before the Vice
Chancellor 1t was put over until July e
The answer is sworn to by Charles NJ
Schwab as President. For the first time
since the organization of the steel corpo-
ration detailed statement of the assets
of the properties of the subsidiary COM
panies is furnished.
hundred producing mills of the value OF
$500, 900, 900; seventy-fve blast furnaces OF
the value of $4s, 900. OOo:! iron and Bessemer
ore properties OF the value Of $7Oo,0oooOo
coal and coken properties Of the value OF
800 900, 900; natural gas fields of the value
of $40 000 900; cash IN bank to the amount
of s66, o0O, 5000, and over $50 100000 of ma
terial in process of manufacture
Worth 81 400, 900, 900.
The total value of the company's prop
erty, including cash and cash assets, Is
placed at 81, 100000 by Mr. Schwab in an
affidavit which is part of the corporation {
reply.
The company's earnings are stated to
be at the rate of more than NOUOO,0O
year A saving of $4O,000,0O0 year is cred
tied to the ore properties. and 1t is esti'
mated that the ownership OF the trans
portation facilities saves the company
$1O, oOO, 900 annually. The earnings of the
coal and coke properties are stated TO be
more than $l.00O,0OO a month.
These statements as to the values anc
earnings were presented to disprove a
charge by the plaintiffs that Mr.. Schwab
the President, and Mr.. Trimble. the Secre
tary. made false certificate when theS
certified that in their judgment the prop
critics were worth at least the par valut
of the preferred stock after deducting al
indebtedness.
The corporation declares 1t has nc
knowledge that Mr.. Hodge is the owner
of a hundred shares of its preferred stock
but admits that in August, 1901, one hun
dred shares of preferred stock was
transferred to his name on the company
books.
Curtis Not a Stakeholder.
1t is denied that William II. Curtis Is
the owner of the companys stock and II
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 a stockholders meeting May 10
The answer admits that the conversion
plan includes a payment of $l0OOO,0OO tc
+ p. Morgan & Co. 1t denies that any
of the acts contemplated will work fraud
or injury to the compliments but says
that on the contrarp such acts when con-
summated will be greatly to the benehi
OF the corporation and of every stock
holder.
The answer says that some of the di-
rectors are members of the syndicate
formed by J. P. Morgan & Co. to noa'
bonds and that that fact was communi-
Gated to stockholders in circular dated
April II. 1902
It is further declared that the directors
so interested constitute minority OF the
Board of Directors; that they were acine
individually at the time Of the formation
Of such syndicate and now are owners and
holders of large amounts of the stock OF
the defendant corporation, and that they
become parties to the syndicate and as
sumed their proportion of the liability
thereof in order to assure the success OF
the plan of purchasing and retiring the
nreferred stock, as they believed such
plan to be of great value to the DEFEND
ant corporation and its stockholders.