New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-11-02
iribution during the year beginning May l, 1913
~ e...a.,. .-a-a. .l.o eolln-.ine this noint:

,ribution during the year beginning May l, 1903.
Mr. Smith adds the following on this point;
Some attempt has been made by Bethlehem 70
Justify its retention OF Its earnings ~ ti5S &C :.
ment that it's credit had become impaired. ana 1t
therefore necessary TO pay CdSI lvI
able tn order to placate its creditors The alleged
cause Of the imPa66msnt qt he Befhlehem com
panv made TO the Colonial Trust COMPANY upon lIs
RetbIehem bv the United states Shipbuding Com
pany. As further security 70 MI SchWau aol ~
chase price Of Bethlehem. the Bethlehem steel
C-ornna,,, executed TO the Colonial Trust Company
the rnortgaCe above referred to to secure hond
Your receiver Is advised that the execution, and
delivery such bond and mortgage by Bethlene h
sSIe Of the stock of the Bethlehem fraud
The Of ad NJ R and TGsOrs by M
s sSI% Ss''u'e q Tue '0H''O' . 49,
plains Of. the result Of its own dehberate IN
warranted and Illegal act Your receiver SUBMITS.
therefore that there was justification for with
nenI Tba entire earnings of the Bethlehem
pany. and charges that the inability OF the snip
in I9rre nam to the failure Of the Bethlehem
pany to relinquish its earnings
COURTS ACTION. FoREsTALLED.
Mr.. Smith then proceeds TO call the attention
Of the court to matters which he says are
somewhat small in comparison with the enor-
nous and unlawful appropriation of stocks and
bonds Of the United States Shipbuflding Com
many above mentioned, but OF some Importance
in showing the manner with which the Beth
lehem company dealt with the United States
Shipbuilding Company
At the time of the sale Of the Bethlehem Steel
Company TO the United States Shipbullding CON-
pany a statement was made thar the amount 81
inventory q certain figure. After the SAFE or
the Bethlehem company 10 the United States ShlP-
building COMPANY S9|l0C0 this amount was
purpose adjusting the book value OF me IN
ventory with the actual value which had oeen
placed thereon by the accountants after eXar1llna-
This examination had been MADE IN Aprh.
1902 and the Bethlehem company had been instruct
81 4 that time charge of. to adjustment OF in
venrorv, S6l9 al % Instead Of complying with tnls
request they charged of only $3.50 il 92 and at the
time Of the sale Of the plant TO the United states
Shpbuil6ing Company the statement submitted
contained surplus S250000 in excess Of what Beth
lehem knew TO be the actual amount
attention Of the court On June z. 1903. while pro
ceedinEs were pending for the appointment Of re
ownership Of the shipbUjldlng company, and, as II
10 your receiver with view 10 torestalllng
the directors o. said company adopted resolution,
provided for under Mr. Schws BIS mortgage, re
guessing the NevV-HOrk Security Trust Company TO
the entire shares OF Tire capital stock of the
following persons, directors Of said Bethlehem
Steel COMPANY. namely. z. N MCIlVain. Archibald
Johnson. Adolphe Z. Borie and Lewis Nixon. Mr..
McIlVa1n was al that time and IS the president
Of the Bethlehem Steel Company. Nj Borie was
and : the viCe-president of the Bethlehem Steel
COMPANY. ana NJ Johnson was and is the general
directors were selected by M Schwab's trustee it
IS apparent that but Of the seven could said
10 represent interests other than those Of Mr..
Schwah. BY this means, if successful. Mr.. Schwab
The reach of the court for a. least another year.