Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1902-08-28
STEEL TRUST EARNS
HALF MILLION DAILY
Affidavit Shows the Prop
erty Is Worth
ST, 400, 900. 900
in Cash.

TRENTON. n. J.. Aug. 27.-The United
States Steel corporation today hied In the
court OF chancery an answer 10 the
amended bill OF complaint OF J. AspinWan
Hodge. Bernard Smith and William n
Curtiss to restrain the proposed convers-
ion OF $50 600 600 : per cent preferred stock
into 100000 5 per cent second mort
gage bonds
The answer denies that the books OF the
corporation show Curtiss 10 be the owner
OF any stocks OF the concern omith, IL Is
averred. did not own any stock OF record
until June "a. 1909. after the plan OF con-
version had been adopted and that the
stock now recorded in Smiths name was
voted in favor OF the plan.
Hodge. IL Is admitted. owns 100 shares
OF stock but Il is alleged that he was
not present at the stockholders meeting
when the plan was submitted ana that
his stock was not voted either by himself
or proxy.
II i denied that fifteen or more OF the
directors OF the steel corporation are
members Of the syndicate through which
the preferred stock was 10 be converted
into bonds.
II Is admitted that some OF the directors
are members Of the syndicate. but that
this fact was communicated 20 every
stakeholder in the circular OF April lfth'
1sc2. IN the following words:
To further the success OF the plan there
has been formed syndicate including
some directors. who viii receive FOUR
fifths OF the per cent commission 70 be
paid under the contract with ]. p Nor
gan & Co. mentioned In the notice or
stockholders meeting
The answer says that the directors in
the corporations are a minority IN the
board OF directors. but they are large
stockholders and favored the conversion
plan because they believed Il would oe ad-
vanta Eeous to them as stockholders.
II Is denied that any stockholders had
been offered special terms in connection
with converting their preferred stock into
bonds in order TO secure their affirma-
tive votes for the plan.
II Is denied that the &0OO.W0 OF aool-
tional capital which 1t was proposed TO
obtain was needed for purposes that were
chargeable 10 the earnings Of the COM
pany. -
the answer then takes up the line OF
argument made in the affidavit OF George
". Perkins. chairman OF the finance COM
rnfttee. fled last week in which Mr.. Per-
kins claimed that this additional s50oeO,-
600 was needed 10 pay for improvements
and TO give the company larger surplus
70 permit Il 70 do a cash business and pc
protected against a money stringency IN
the event OF a business depression The
answer says the earnings OF the corpora
ton for the year ending March 81. lsOz.
were SI1f. go. 90; for the month OF April
1ae. 81. 81. 7ss: May. s131eo.e90: June. sl2.-
$3.50. July estimated 81. $4,000. or az the
rate OF g150Coo.ooo q year.
An inventory Is Med 10 show that the
company's property is worth 81. 100000
more than the combined par value OF the
preferred and common stocks. II Is stated
also that the cOmpany's surplus is $500
Co. The answer emphasizes the point
raised BY Mr.. Perkins 70 the effect that
the conversion plan would reduce the fix-
ed charges OF tie company and be adj
vantageous TO all stock holders. both pre-
ferred and common.