New-York tribune., 1903-06-25
MAY NOT BE RECEIVER.
,SHIPBUILDING CO.'S FATE.
Closing arguments at Nesoarh- Ne
cision EarIu Nert Week.

.-,,-,e,, l., the hearing before Judge Andrew
Eiriratrick in the United States Circuit court dt
Newark on the petition of Roland 10 1ol'\''il aiU
others for a receiver for the United states Shii
,,-u5;-p Co-npsnv was ended late yesterday al
,ernoon The court took the papers in the case
md said that he would announce his decision On
Tuesday or Wednesday Some OF those VINO nav
been IN court during the two days argument are
cf the opinion that receiver VIII ne ap'oiii'0
.r1 that in that case former United States Senator
James smith jr may he selected for the post Il
he will accept il. Many others believe 'ha' ''ie
fact that Judge kirkpatrick did not at once al,
,,oin1 = receiver indicates that the application VIII
be dismissed ,
Charles l. Corbfn. Of Jersey CITY yesterday com
rleted his argument for the defence when ne pc
san late on Tuesday afternoon. He deienoeu u.e
1earcal!izatioa plan saying that loss OF SAA'~i'U
,n- contracts had brought about an uileNL'ecteu
.-,,.is1 e1,or-.-e which the sale Of bonds under
the man would relieve He contended that VI iio
siner way could the creditors or bondhoioeIS, ~
cludinE the complainants be protected rom i'''
10 ie3sta5 tba; the sppofntrnent Of receiver now
would precpitatc the foreclosure OF the mor'saee
on the nlants OF the ShipbuIdinE Company ana o.
The Bethlehem Steel Company: that IL "ouio Cieale
,,arl-1,rt.v where none NOW exists. the Shlpoulo-
- Cor,nauv being able 10 pay every debt now que
and able 10 discharge its obligations uh'l 'u''
--5en an extension Of time was possible
FORECLOSURE SURE TO FOLLOW
,-- corlin said that even If a receiver were sp-
oi,,-a5 foreclosure would be avoided The
s,rircinsl bondholders would be purchasers ChueI
-he foreclosure. and reconstruction of some soI'
,a.oiild be sure To follow. Mr. Corbln asked no"
the receiver could obtain funds lie could not
-,,7 tho directors OF the steel company TO give
nm The earnings under the terms Of the MORTGAGE
His credit would be just as good as that OF the
,orporation wouldn't it, Judge kirkpatrick asked
Il think not" AIr Corbin answered We submit
that the conlplainan1s have not shown evidence ol
,rsol,a-c, nor any Of fraud waste of assets
and also that this has not the Jurlsacuoh TO
establish a receiver proof Of insolvency. unless
7roof OF fraud of assets is given as wen.
Attorney General Robert II. McCarter, or New
srt who followed Mr.. Corhin, made a strong argu-
-,en+ for the defendant corporation. As TO the
r51I Of the compainants. Mr.. McCarter said 1t did
not smell Of a New-Jersey law office and he did
not believe il had been prepared by a lawyer Ia
,1lfliar with New-Jersey equity practice. 1t was
alleged in the bin that Conklin the only COM
-,lainant who owned bonds and some Of the stock.
had been fraudently induced 10 buy the stock ny
reason Of a false prospectus But the date or his
purchase was not given. The prospectus was is
sued before the company was formed. and the sec
ond statement which the bili referred was issued
after tho whole issue of stock had been subscribed.
Taking un the allegation Of insolvency, MI Nc
Carter said the corporation was not 1nsolvent-
There was not note due. not an unpaid DILL d
rlant worth over $50 0ooaoo with ten thousand men
working on IL and nothing more than apprehension
Tor the future
SHIPS NOW on THE WAYS.
NJ AcCarter said in closing that the shipbuild-
,rP rornrsnv had now upon the ways fourteen
stirs Of war in process OF construction The law
1rovided that in case receiver was appointed the
government could step I'm and take physical control
Of these ships and finish them in its own way,
leaving the yards get along as best they can
He said The company had trouble In getting
credit at present but would have a hard time OBJ
tanning 1t If a receiver were appointed.
After recess Richard Y. Lindabury, Of Newark
made the closing argument for the complanants
RepIvinc to the argument of Mr. Corbin that IN
solvency and fyaud must ne proved to warrant ac-
7ion l,v the federal courts. he read from a de-
-fsfon nv the United States Supreme Court wherein
he r1. WIS laid thar the jurisdiction OF the
State courts cannot interfere in the administration
Of eauitahe relief in the federal court.
4 propose TO convict the defendant of confessed
,,sot,-ar7c,-' he said when Mr. McCarter inter
rllnted him by its answer in this case IL L
do not ! viii throw up my brief.
He rhen said that New-Jersey statutes had beel
a TrOEide that receiver might be appointed
for a company of which it did not appear that 1t
would he able to resume business without danger
10 the public and 10 the benefit of the stockholq-
ers within a short time. In order 10 create this
condition II was not necessary that defendant
CORPORATION should have entirely suspended busl-
ness.
Al The close Of Mr.. Iindaburys argument Judge
T[irkpatrick said he would give counsel on both
sides until Friday noon to hle brle1s so thaI ne
could take up consideration of the case on sat
urdav as he wanted dispose of it Immediately.
He also said he would give the decision next Tues
day Wednesday.