The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-06-23
ARGUMENT AT TRENTON
BEGUN IN SHIPBUILDING TRUST RE-
OWNERSHIP SUIT.
Answer of the Company and Amdavits
of Nixon and Carey Are Presented
The Days Proceedings.

TRENTON, N. j., June o. Argument
was begun in the United States Circuit
Court to-day, before Judge Kirkpatrick. in
the case of the application of Rolan r.
Conklin and others for the appointment of
receiver for the United States Shipbuild-
ing Company. Each side had big array of
counsel. Representing the complainant were
r. V. Lindabury. Henry Woolman and
Henry Untermeyer. Counsel for the ship
building company were Charles l.. Corbin,
Attorney General Robert H. McCarter and
Charles c. Deming.
The case was opened by Mr.. Woolman
reading at length the bill of complaint, the
substance of which has already been pub
nshed. During the reading Mr.. Woolman
brought out the facts that Charles NJ
Schwab had received for the Bethlehem
$4,000, 600 preferred stock, 100000 common
stock and $40, 900 of collateral bonds.
Judge kirkpatrick asked what the col
lateral consisted of. and was told that 1T
embraced two mortgages, one on the Beth
Iehem plant and another on the shipbuild-
ing company's entire property. When the
reading of the bill of complaint was COM
pleted Mr.. Woolman began reading the ex-
hibits in the case one of which was state
ment issued by the Republic Trust Com
pany, containing very f1attering statement
as to the company's condition.
Attorney General McCarter read the an
swer and also the affidavits of Lewis Nix
on the president, and A. &. Carey, secre-
tary of the company. The answer in the
main is general denial of the salient
points of the bill Of complaint 1t denies alb
solutely that there was any insolvency and
declares the company was able to meet its
obligations; that no arrangement had been
made, whereby bonds were to be issued on
rnf of Rath oh nj ha q
plant was not separately acquired; that 1T
was inclAded in the general purchase and
that the promoter was neither Nixon nor
paid was a matter of judgment and that
good judgment had been exercised in the
purchase. 1t was denied that any excessive
prices had been paid and the company de-
MED that Ii had made any exaggerated
statement to the companys condition.
The company denied absolutely any re-
sponsibiity for the statements put out by
the Republic Trust Company.
The affidavit of Mr.. Nixon was a sweep
ing denial Of the charges In the bill of COM
plant. He said he had absolutely nothing
to do with the conception carrying out
of the formation of the United States Ship
building Company. The promoter, he said,
was John w. Young, and. that what he
(Nixon) did was to give Young an option on
his own plant. He also gave as his opinion,
based on his experience of eighteen years
in the shipbuilding business. that the
works, were worth $40, OO0, 900. The body of
Mr.. Nixons statement has been published
heretofore.
The affidavit of Mr.. Carey was to the
effect that the United States Shipbuilding
Company entirely solvent.
When these affidavits were presented Mr..
McCarter offered other affidavits from OFF,
GERS of the subsidiary companies, showing
their solvency. These additional affidavits
were objected to on technical grounds be-
cause the complainant had no notice that
they would be presented, but We're provl-
sionally accepted.
After a short recess the complainant
sought to have called a witness Mr..
Sheldon of the reorganization committee.
He was not present although 1t was in
sisted that he had been served with a
subpoena. After some discussion as to Mr..
Sheldons status 1t was agreed to proceed
without him and court then adjourned till
tomorrow morning, when it will be con-
vened at Newark.