New-York tribune., 1903-02-06

rb, news of the victory of the United States
Steel CORPORATION reached Wall Street before noon
Yesterday and although not unexpected had an
Immediately stimulating effect upon the Steel
stocks which closed each within one-elshth OF
pont of the highest OF the day, the common with a
gain Of l per cent anu 'iic Pi01''-'' - -
cent.
An Inference drawn by many from this stock
movement was that the corporation hau louSIlI
This case to a finish largely for the moral erect
and that the stock conversion plan the VaHaity ol
which is now apparently fully established would
be dropped for the proposition TO convert S-'V'''V
OF preferred stock into bonds has not III the past
been regarded by the Street ''ouII argument
No expression as to the probable course 10 DC pur
sued however could be obtained from leading steer
CORPORATION interests. the answer Of each being
''I haven't seen the courts opinion yet a similar
uncertainty exists TO the Likelihood OF tHe lssu-
ance Of S5oo0oO00 additional bonds. plan which II
has been declared several times by directors or te
ste1 corporation was bound up with the stock con-
version plan.
HISTORY OF RESOLUTION
The resolution for the retirement of s2S1ooeo9o
per cent stock and the issuance OF s-5eeoVOo per
cent bonds OF which 500 600 600 should be eXchaseu
for preferred stock and $50 o0o0 sold for cash. was
adopted by the directors of the United States steel
CornoratIon on April l. 1902 and ratified by the
shareholders on May 10. The purposes TO which the
proceeds of the s50Ooocl0 OF new bonds were TO DC
devoted were stated to be: For reinlbursins the
arcount of construction under way by subsidiary
companies at the time of the formation OF the
Steel Corporation S1500o.0o0; for properties pur-
chased almost Immediately after the organization Of
tbe corporation slNU9OO0; for improvements, Sz5,-
Osp coo Since that estimate was made. however. the
corporation has been making enormous earnings,
It's net profits for the year 1907 after rho deduction
of all dividend interest and sinking fund require
ents and of $4,000 goo for depreciation ana
improvements. having been SS0 silgb0. . -
The CORPORATION has on Its BOOKS the ldrEeSt
amount OF untitled orders in ITS history and IS
assured for at least a consideTabe time to come
of continuance of its remarkable prosperity:
and these facts incline Wall Street to the belief
that the directors viii either Gnd IL advisable to
mset the entire 100000 expenditure of the
nncuu,,iatinr surplus or will decide to issue a
much smaller amount of bonds than S0.t00Odo.
The action upon which the Court OF Errors and
brought on July !, 1902, by J. Aspinwan Hodge.
ir bernard Smith and William H. Curtiss~
of Hopkins Bros. and Russell Sage. were Joined
with these parties plaintin, but promptly
withdrew the of their names, The complain
ant applied C. Nice-Chancellor Emery for teIh-
porary iniun ton restraining the stock conversion.
and obtained pending the hearing on a rule TO
his decision granting a preliminary injunction on
the understanding that the defendants might take
an appeal to the Court Of Errors and Appeals. The
several particulars from that which had previously
been filed by Mrs. Berger. upon which the Court OF
Errors and Appeals on Septemoer ls handed d9Mn
of the aIlegati presented in the Hodge bill was
fraud. and another that the corporations assets;
after deductinP the amount OF Its ihdeotednes dld
not equal the of the outstanding preferred
stock The ViCe-Chancellor. however. while dis
cussing length the various questions raised:
granted the I'm Junction solely Upon the technical
ground that the stockholders meeting at Whlch
the retirement IF the preferred stock was author
having elapsed after the declaration and payment
OF the irst dividend upon the preferred stock.