Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-11-02
A GREAT STEAL!
CONTINUED from page ~


appointment of receiver and to compel
the appropriation of the earnings ol
that company by way Of dividends on
the stock.
i The report first deals with the incor-
poration of the original United States
Shipbuilding Co. with $4,000 capital and
dummy" directors and officers in June.
1902, the offer of Promoter John W..
Young. TO sell to it the United Iron
Works of San Francisco, the Harlan &
Hollinesworth Co. of Wilmington, Del.
the Eastern Shipbuilding Co., the
Canda Mfg. Co., the Crescent Ship
building Co.. and the Samuel L. Moore
& Sons Co. of New Jersey. the Bath
Iron Works, and the Hyde Windlass
Co. of Maine, and the Bethlehem Steel
Co. of Pennsylvania, and the action in
this offer by the company.
The incorporators of the company,
the report states. were Howard X.
Wood, Howard Gould. and Kenneth X.
McLaren of Jersey City, holding COL
lectively Is shares of preferred and Is
shares of common stock of the COM
lpany. On June "a, 1902, Frederic X.
Seward, Raymond Newman and Louis
B. Daley were elected directors, the
minutes reciting that Howard K Wood,
one of the corporators and subscribers
to the stock, had assigned his right to
one share of common stock to each of
the persons above named to qualify
them as directors. No stock of the
United States Shipbuilding Co., how
ever, was issued to or placed in the
name of these directors, so far as the
records Of the company disclose. New
man was elected director; Daley
vice president, and Seward secretary
and treasurer. Wood, Gould and Nc
I.aren were at the date of such incor-
poration all connected with the Corpor-
alton Trust Co. of New Jersey, and the
| directors were employees of said COM
pany.
At this meeting the offer of Pro-
moter John w. Young, to turn over to
the United States Shipbuilding Co. the
several constituent plants, was sub
mitted, the terms of the sale of the
stock of the companies being as fol-
lows: In connection with the purcha Sc
of the stock of the Union Iron Works
of San Francisco, Henry T. Scott and
Irving M. Scott were to agree to enter
into contract with the Shipbulding
Co. not to compete with it in its bust =
ness and not to employ their capital or
to personally engage in any shipyards
Or shipbuilding business for the period
of 10 years, and the company was to
contract G. w. Dickie, r. Forsyth and
John T. Scott as officers or managers
for five years, at annual salaries of
$4,000; w. H. Gould as mining engi-
neer for five years at $4,000 per an
| Ia T cicfo ~
constructor at $4,000 per annum for five
years; w. P. Colt as assistant to the
president of the Shipbuilding Co. for
five years, at an annual salary of $4,000;
H. A. Scott as assistant to the engineer
in chief for five years at $4,000 per an
mum; and Edward Dunn as assistant
, chief craftsman for three years at $4,000
per year.
The offer of the Harlan & Hollings-
worth and the Eastern Shipbuilding Co
was conditional upon the acceptance by
the new company of certain guarantees
for completion of contracts and in the
case of the Eastern Co. that the COM
, pany engage Charles H. Hanscom to
continue in the management and direc-
ton of the organization and plant of
the Eastern Shipbuilding Co. at an an
nual salary of $4,000 until the COM
pletion and delivery of two steamships
being constructed for James j. Hill
and MaunselI Van Rensselaer, as man.
ager of the financial department for
five years at $4,000 per annum.
The offer of the Crescent Shipyard
Co. was upon the condition that all OBJ
legations or indemnity contracts in con-
nection with the government or other
| contracts should be assured and that
Lewis Nixon should contract with the
company to give it's business his time
and attention for five years at a salary
to be agreed upon and also to enter
into a contract not to compete directly
or Indirectly with it in it's business.
In purchasing the Samuel l.. Moore
& Sons Co, the company was to en-
gage Frederick WOODBURY. for five years
at an annual salary of $500.
In purchasing the Bath Iron Works
and the Hyde Windlass Co. of Maine
all contracts of indemnity in connection
with contracts with the government
were to be assumed and the present
stockholders of the said Bath Iron
. Works reserved that portion of profit
earned on the monitors Nevada and the
, CRUISER 1leNeldllu anu sui UNPAID on
account of the reservations by the gov
eminent. Edward w. Hyde, John S.
Hyde and j. r. Andrews were to be
employed for five years at $4,000 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 ex-
cept current Indebtedness incurred in
the usual course of business" except
in the case of the Harlan & Hollings-
worth Co., where $156.OO0 in mortgages
and further disbursement of 100000
900 was to be paid out of surplus earn
ings of the company. The current in
debtedness" assumed under the agree
ment, it later developed was over ST.
100000.
In the case of the Bethlehem Co. tn,
offer was made on condition that the
stock of the company was to be deposited
with the New York Security and Trus
Co. in trust. A trust deed was to be is
sued on this stock which should be {
] fret lion ,,pnp the stock and Secopf