New-York tribune., 1902-07-13
BERGER DEFINES POSITION.
THINKS STEEL CORPORATION SHOULD
BE ALLOWED TO ISSUE
s5o,OOOo0o IN BONDS.
SAYS HE IS PREPARING PAPERS TO EX-
POSE GANG OF CONsPIRATORs" WHO
BRING SUITS ONLY FOR OBJ
STRUCTIVE PURPOSES.

Maurice Berger. who was formerly confidential
clerk of Francis D. Carley, and who is related
to Mrs. Miriam Berger. who a few weeks ago
began proceedings to restrain the United States
Steel Corporation from exchanging S20O,OOOOOO
preferred stock for bonds yesterday issued
statement in relation to that suit, which is now
before the New-Jersey Court Of Errors and Ap-
peals on appeal. The statement is in part as
follows:
We have written Robert H. McCarter. our
New-Jersey attorney, that he must sever has
connection with the last litigation against the
Steel Corporation. or permit us to substitute in
our sult dnother attorney IN his place. we
have been pleased with Mr. McCarters manage
ment Of our case, and do not doubt his good
faith, but we are not willing that the public
should have any reason to associate us with
more recent complaipants. The fact is, We do
not approve Of the purposes which the last liti-
cation discloses. This suit undertakes TO
prevent the issue of $50000.000 bonds We
think these bonds should be issued, because the
money is to be used for the needs Of the busi-
ness This new suit objects 10 the contract be
tween the company and J. p. Morgan & Co.
We think If the bonds are issued this contract
will be necessary TO protect SO large an issue.
The new suit assails the integrity and validity
OF the vote by which the bond conversion plan
was adopted. We think such criticism uniusti-
fed and insulting to the management
This new suit was started on the eve OF the
summer and therefore il IL has any effect it
will only be that OF obstruction and embarrass-
ment. Such questions The directors and major
legal right to determine. All litigation for OBJ
struction or annoyance is regarded by US with
unmooihed antipathy. l am the officer of
corporation which has been held up for two
years by the well known clique of Wall Street
conspirators on lines similar to the litigation
against the Consolidated Gas Company and the
Metropolitan Securities Company. Already the
papers are being prepared under my direction
Which VIII expose this gang Of conspirators in a
way TO set New-York a-smiling. There is a
wide gulf discernible between legitimate and
lllegltlmate litigation. Every lawsuit should be
! judged by its own character.
To those whose views have been represented
| In Berger against the United States Steel Cor
! serious proposition. Almost their entire in
! come is derived from this preferred stock They
! have retained their holdings with sincerity
| of investment which many of the directors
| themselves have not shown. Does any one
| imagine that the officers of the Steel CORPORA
ton deny or defy the right of such stockholders
| 10 raise points Of law in a legitimate manner?
Certainly not On the contrary, the attorneys
| of the corporation have shown our attorneys
every courtesy. and during the trial have ex-
hibited no feeling except that in favor of speedy
solution.
Mr.. Bergers statement was shown to an off,
Ger Of the Steel Corporation. but he refused to
| comment on it in any way. Asked about the
| -Smith-Hodge suit, this officer answered:
Our answer is already prepared, and will be
submitted to the court on Tuesday and we will
| not consent to any postponement OF the case.
We will make a full answer and will most GER
| tainly fight the case to a finish, provided that
any parties plaintiff" are left The complain
ant alleges fraud, and the matter must be gone
forts are being made to enlist more parties
plaintiff" by a man who has denied interest in
| the case. We have been told OF this by firms
TO whom he has gone.