New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-06-23
YOUNG THE PROMOTER.
SHIPRTTLDING HEARING.
Niron's DeniaIs Company's SolU-
encU asserted
fRr TELEGRAPH To THE TRIBUNE,

GRT TELEGRAPH THE TRIRUNE-i
Trenton. y. J. June 22.-The efforts of Roland
r. Conkin. Max Nathan Jacob W. Mack and
James d Mcguire to secure the appointment of a
receiver for the United States Shipbuilding Com
pany resulted in Il spirited legal battle before
Judge IIirkpa trick in the United States Circuit
Court to-day, the result of which was an adjourn
ment until tomorrow morning, when the fight will
he resumed in Newark. From the time that the
answer of the Sheldon reorgan ization committee.
setting forth the solvency of the corporation and
making general denial Of the complainants allega-
tons filed in the morning. until the close of
the afternoon session. every step in the proceed
ings bitterly fought, neither side being willing
to surrender inch of ground. The day ended
with technical wrange as to whether CT not Mr.,
Sheldon had manifested indifference by his failure
to appear in
The case was opened by Henry Wollman. of
counsel for the compliments. who read the bill OF
complaint and various exhibits. In the course Of
the reading M Wollman brought out the fact
Bethlehem Steel Company 100000 in securities Of
as fooWs a dn dnEs Worh Of preferred
stock. S10.00.0o0 of common stock and S00oo00 of
collateral trust bonds. Judge Kirkpatrick asked
what the collateral consisted Of. and on being told
that it embraced two mortgages, one on the Beth
lehem plant and another on the Shipbuilding Com
panys entire property. remarked that Mr. Schwab
The formal answer of the shipbuiIding company
was read by Attorney General Robert H McCarter.
denied in detail the Charges Of mismana cement
made by the compainants and the allegation that
Lewis Nixon had conceived the plan of forming
the company with a view of unloading the Cres-
made of fba charge a that the conpanv Vas unable
to meet maturing obligations. but it admitted
shipbuding concerns alone since their purchase.
and that $1.3S.44 had been withdrawn from the
working capital of the United States Shpbuilding
Company Admitting the purchase of all the shares
said the defendants could not say whether not
the price paid exceeded 100000
at the insistence Of Charles NJ schwab and that
when amended certificate filed making the
capital stock preferred
common stock, there was A payment of $2Og0oN
the plan of consolidation proposed and en-
gneered by John W oo Young, whose eonsiderat tic
was set out as S19 $3.50 in preferred stock S24-
s 500 in Gomm91 St9Gk and $6o9o Of first mort
mortgage ON the shares of the Bethlehem com
Nj McCarter read an affidavit from Lewis Nixon
emphatcalIy denying the charges made against
him, and then Samuel Untermyer. representing the
Mr.. Nixon to take the stand The court announced
da%its would have to be called Counsel announced
later the intention Of summonng both MI Nixon
ingness to testify at time: saying that no sub
pcena would be necessary in his case.
Mr. NIXON's AFFIDAVIT.
1t was brought out in Mr.. Nfxon's affidavit that
he had turned over his property at the same time
that the Bethlehem plant was turned over. Mr..
Nixon being then neither a director officer
of the company. Besides this Mr.. Nixons aft
davit states in part:
have read the bill Of complaint. and deny each
same to the effect that was the Promotte r., of
Company or that Conceived the piaG Of organ2
zat9n Of the t The r conception f and pre-
young = fare an "P4 on on my gan5 as gTng
join the agreement. which was made between Nj
object Of undarwrtfng or securing purchasers tor
the bonds Of the company and at the time gave
my option to Young I was entirely ignorant of
the terms of such agreement. lad nothing what
ever to do with the selection OF the other COM
Ths dP6g that G1 3y 4eg
tons values earnings. and any suCn that
entirely upon reports Of accountants. All that ]
did say, and still ma intain. is that when work. lg
such time as work could be so allotted to employ
each plant upon the work it best capable ot
a least 100000 year from the shipyard plants.
CAPABLE OF PRODUCING 100000.
I estimate the value of the plants. exclusive of
Bethlehem working IN co-opeTTau;on under one
ent more than $4odoooo worth finished product
yearly. at not less than 100000.
| deny absolutely each and every statement to
defendant company it had beer arranged tetweep
should acquire the pIart. property and business of
the Bethlehem Steel Company. so that he might
the compahT on the Contrary the fact
is that schwab had acquired the Bethlehem st3 eel
company the maturity OF ,t the plans therefor
My attention has been called TO the allegation.
entirely unproyen that had approyed and recon &c
do i'm the interest of Schwab with view of avoid
ing A supposed investigation and exposure Of my
conduct as an officer and director of the company
by the court through DISTINGUISHED receiver.
on the express implied understanding that. If II
succeeds in carving out its plan neither nor my
60 directors will prosecuted for conduct and
that no restitution will be sought from 1pe by
reason Of nv acts or alleged omissions in connec-
ton with the organization or management OF the
COMPANY | deny each and all of these statements.
insir1la lions and accuse tons deny that there
! has been any misconduct on my part in the man
agernent of the company since | became a director
After the afidavts had been submitted a heated
arrIJTnent took place the question of the intro
auction of testimony offset the ex-parte atfi-
dayits Several affdavits from officers of under
living companies had been admitted under protest
frnrn the CompIainantS' counsel on the plea that
they had been sprung at the last moment without
warning and without opportunity to refute them.
1t was finally agreed, account Of the iateness OF
tho hour TO let the whole matter lie over until the
court meets in Newark tomorrow morning. when
both sides will have opportunity to present such
arguments they desire.
Charles ". Dayton yesterday denied that he
to make an application in the United States courts
for an order in connection with the shipbuiIding
bonds and also that he had cabled his client John
". Young. to press his claims
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BIG INCREASE IN CAPITAL.
TBy TFLEGRAFH To THE TEIBUSE-l
Trenton. June 22-The Continental Equipment