New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-11-19
SEEK SECOND RECEIVER.
PLAN TO STOP INQUIRY.
Nc,c duplication in Shipbuilding
Case DeIays Hearing.

Trenton \ l. Nov ls-Under an order filed
with the clerk of the United States Circuit Court
here tonight. the United States Shipouildng com
pany is required to show cause before Judge kirk
patrick in Newark next Tuesday. why receiver
should not be appointed the suit of the Mercan-
tile Trust Company. of New-York. as trustee. Inc
trust company holds mortgage on the snip
building company's property for s1s.coo.ooe which
it charges has been declared void by the present
receiver James Smith, jr.. having been issued
without consideration.
The petition denies the truth OF this claim with
going the details of the transactions lead
ing up to the giving of the mortgage 1t does
say. however. that July last there was de-
fault in interest bonds amounting TO 100000. and
a further default Of 100000 in payments due the
sinking fund created for the retirement Of the
bonds. The petition sets forth that by the tArn1s
Of the trust deed the compliments right to fore
close has become absolute despite a provision In
the mortgage for a continuance Of the period OF
default
His contention is based the fact that the sov-
ency Of the corporation has already been brought
fin question by the appointment Of receiver In the
person OF Mr. Smith. the claim being made that
the mortgages represented by the trust company
entitled TO have their interest protected by the
appointment Of another receiver in the foreclosure
proceedings. The trust company charges that the
bonds held by them constitute lien upon the
property of the company. and that in consequence
the receiver which they ask to have named will
have right take possession of all the property
From the bare order and petition. it is not ap-
parent 10 what extent the new application may be
antagonistic 10 the interests represented by Mr..
Smitl& does it appear with certainty that the
reuUeat for a second receiver is more than a tech
nical move which even If successful. might result
I'm Mr.. Smith remaining in the position he now
holds This at least is the opinion of some of the
court officials who have examined the papers on
file
In Nev-York among persons who have followed
the affairs Of the United States Shpbuildng Com
pany closely the application for a second receiver
regarded last evening attempt 20 shut
off the hearing before the special examiner, which
interests in Wall Street. The recent delays in the
hearing have been at the request of the counsel
for the Shipbuilding company and this led to gen
eral belief in Wall Street that some plan was
being formed for stopping the investigation alto
gether The application for a second receiver being
made by the Mercantile Trust Company. re-
garded last evening by bondhoders who brought
the suit for n permanent receiver move i'm the
interest OF Charles NJ Schwab, and designed to
give to him an opportunity of going the witness
stand and testifying about Shipbuilding affairs.
Mr.. Schwab in the city last night, but he de-
clined to make any statement the subject Moth
ing on the subject could he obtained from counsel
supposed to represent him in the proceeding.
Il don't consider this application serious. and
don't think it will interfere with the present suit
for a permanent receiver Samuel Unternyer said
last evening at his home in Yonkers. 1T is not
probable that tho court would GUST ex-senator
Smith. the temporary receiver, who was appointed
by the court The application may he meant TO shut
off the investigation but expect to go with
it,"