The Indianapolis journal., 1903-11-02
FRAUDS OF FINANCE.
CONCLUDED FROM FIRsT PAGEl

stock of the Union iron works of San Fran
cisco, Henry Scott and Irving NJ. Scott We're
TO agree TO enter into a contract with the
Shipbuflding Company not to compete with
1t in its business and not to employ their
capital or to personally engage in any ship
yards or shipbuilding business for the peri
od OF ten years and the company was TO
contract to engage G.. w. Diclxie. r. For
sythe and John 7. Scott as officers or man
ayers for five years, at annual salaries of
for five years at $4,000 per year; Lawrence
l. Scott as assisting constructor at 5000
per annum for five years; w; p Scott as
ing Company for five years at an annual
salary of 5000; H. A. Scott as assistant
to the engineer in chief for five years at
N,WO per annum, and Edward q. Slmm
as assistant to the chief draughtsman for
three years at $1,000 per year.
OTHER TERMS OF SALE.
The offer of the Harlan & Hollingsworth
Company and the Eastern Shipbuilding
Company, was conditional on the accept
ance by the new company of certain guar
antees for completion Of contracts and, in
the case of the Eastern Company. that the
new company engage Charles H. Hans
com to continue in the management and
direction of the organization and plant of
the Eastern Shipbuilding Company at an
annual salary of $1,000 until completion
and delivery of two steamships being con-
structed for James ]. Hill and MaunseIl
Van Rensselaer, as manager of the finan-
cial department for five years at 5000 per
annum.
The offer to the Crescent Shipyard Com
pany was on the condition that all obli-
cations or indemnity contracts in connec-
ton with government or other contracts
should be assured and that Lewis Nixon
shouid contract with the company to give
to its business his time and attention for
five years at a salary to be agreed on,
and also enter contract not to compete di-
IN rrFff h in. ifo hrlCf frnc
Purchasing the Samuel l.. Moore & Sons
Company, the company was to engage Fred
erick Woodburn for five years at an annual
salary OF $500. In purchasing the Bath
iron works and the Hyde Windlass Com
pany, of Maine, all contracts OF indem-
nifty, in connection with contracts with gov
ernment were to be assumed and the pres
ent stockholders of the Bath iron works
reserved that portion of profit earned on the
monitor Nevada" and the cruiser "Cleve-
land" and still unpaid on account Of reser-
vations by the government. Edward A
Hyde, John S. Hyde and j. r. Andrews
were TO be employed for five years at s15,-
600 each per annum.
The entire capital stock of all these
companies was to be turned over, and Mr.
Young agreed that they should be free and
clear of all indebtedness except current
Indebtedness Incurred in the usual course
of business except In the case OF the
Harlan & Hollingsworth Company, where
sl56.o0o in MORTGAGES and further disburse-
ment of $l0,0C0,00 was TO be paid out Of
surplus earnings of this company. The
current indebtedness assumed under the
agreement, it later developed, was over
81. 100000.
THE BETHLEHEM SALE.
In the name of the Bethlehem Company
the offer was made condition that the
stock Of the company was to be deposited
with the New York Security and Trust Com
pany in trust. A trust deed was to be is
sued on this stock which should be a first
property and plants of the other companies
in this latter case a mortgage on them to
secure a bond issue of SIC, coo having pri-
ority. Holders of the Bethlehem bonds
We're to have the right to vote at stock
holders meetings on an equal footing with
the stockholders of the Shipbuilding Com
pany.
On the Bethlehem property $4,000 900
worth of bonds were to be issued and q
mortgage and a single bond to be executed
to the New York Security and Trust Com
pany to secure these, and on agreement
executed between the Bethlehem Steel Com
pany and the Shipbuilding Company in
which the latter company should undertake
to guarantee so long as any of said issue
of $l0,O00,0o0 bonds are outstanding, that the
Bethlehem Steel Company should pay divi-
dends on its capital stock at the rate of
s. per share per year, aggregating an
nual dividend contribution of 100000 and
for that purpose the company would supply
the Bethlehem Steel Company with bust
ness as means or earning 10 enable it to
pay this dividend should such become neces-
sary, advance such money to make the
dividend payment. Such advances might be
credited on any work which the Bethlehem
Company might thereafter perform for the
company. So long as any of said issue of
$10,O00.0c0 bonds remained outstanding the
Bethlehem Steel Company should be pro-
tected in keeping on hand and maintain
ing cash or cash assets of not less than
100000 working capital. and the company
should remain an independent and distinct
corporation and not be merged in or con-
solidated with the Shipbuilding Company
or any other corporation, unless
such merger or consolidation should
be consented to by the holders OF
not less than Is per cent. OF the
outstanding bonds By this agreement the
receiver contends, the United States Ship
building Company was placed entirely in
the control of the Bethlehem Steel Com
pany and its principal stockholder. Charles
NJ. Schwab. Mr.. Young was to turn over
to the Shipbuilding Company. in addition