New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-07-01
NEUTRALITY-SUSPICIOUS.
FOR SHIPYARDS TRUST.
Decision of Judge KirkPatricE That
Com pang Is IRsOLrent.

and an order issued by the court defining the
power OF the receiver. Judge Kirkpatrick was
ready to appoint the receiver yesterday. but
counsel for the defendant company and the
reorganization committee of the concern asked
for short delay. and the Judge said he would
postpone the appointment until 10 O'Clock this
morning. Nobody could learn whom the court
will select as receiver. but many believed yes
terday that ex-United States Senator James
Smith. jr.. would be chosen.
Counsel for defendant and petitioners were IN
court with the exception OF Attorney General
Robert H. McCarter. when court was opened.
and Judge Kirkpatrick said:
have asked counsel to be present IN order
that L might announce my conclusion IN this
case. I have dictated opinion to ste
nographer but have not had chance 20 re-
wise it. and il will ne filed late this afternoon
tomorrow. I have concluded that this
corporation is insolvent under the law. and
that it's directors have not shown that they
are about to take any steps TO remedy tho
present condition OF affairs. With it's credit
gone and without funds TO meet presently ma
turing obligations. II seems TO be TO ths
interests OF the company and It's STOCKHOLDERS.
among whom are these petitioners. tnar a re-
ceivsr should be appointed
Charles C. Deming. for defendant. suggested
that coursel on both sides confer 10 see II they
could agree to recommend any man for receiver.
| Samuel Untermyer. for the petitioner. objected
to postponement. He said his clients. who want
ed the property of the shipbuilding company
protected from all parties IN interest. were per-
| fectly satisfied to allow the appointment OF a
receiver to be made by the court at once. But
/ he was ready to consider an agreement
THAT means that you will talk but not agree.
| said Judge Kirkpatrick
1T will be almost impossible for Us TO accept
any man agreeable to the other side" Mr.. IN
| termyer replied. IF your honor Will appoint a
man, we feel that he will be fearless. honorabls
| and above reproach."
| II have been asked by some OF the Interested
involved" said Judge kirkpatrick. Ito delay my
decision until after July 1. but declined TO do
/ so. and am disinclined to put the appoint
/ ment of receiver of a moment longer than "a
necessary
i There IS no reason why your honor should
not name a receiver now declared R V. Linda
| bury. The delay asked for would permit all
sorts of legal obstructions to be placed in the
way OF the courts officer when he is appointed"
MANY APPLICANTS FOR PLACE
cit would also be a great source OF annoy
ance to me- Judge Kirkpatrick added There
/ will be a great many more than the great many
/ applicants who have already indicated to this
| court their desire 10 serve as receivers some
Of those who have so kindly come forward show
the Endorsement OF influential friends. and
Of them came to me with the indorsemert OF
some OF the defendant directors. Some are
| plain industrious volunteers and all OF them
| are willing to serve for the emoIunents OF the
office I should like TO avoid these requests. il
/ possible"
The judge finally allowed counsel to have a
\ conference and prepare order for him to
/ sign In the afternoon Mr.. Untermyer sub
mitted an order he had prepared.
| I'VE want to submit form and order for cur
| side" said Mr.. Deming. That OF the complain
| ant is too broad in every respect for u.s.
| And yours Is TOO narrow for US" said Mr..
/ JTntermyer. You would tie the receivers hands
/ so he would be helpless. As the receiver will
have the responsibilities he should have all the
| power needed to compel the directors OF the
| defendant company to turn over all assets.
stock. plants. including all the constituent COM
| panies. to him."
| Charles L. Corbin. for defendants. then said
/ that the order submitted by the COnplainants
| gave the receiver too much power. and he ar
| gued that no receiver or court had power over
the constituent companies. which were separats
| companies, except in holding their stock
Are YOU tryin, to appoint receiver for ths
bethlehem SteeeI Works?' Mr. COrbin asked.
I've want TO find out for the bondhOlders and
stockholders and all Interested replied Mr.. IN
ternnver what control the directors OF the ship
building company have over the Bethlehem
Steel works, the Crescent Company and other
concerns and We want the receiver 10 have
full power to investigate all OF these. continus
oDerations at the plant and report to the court"
Mr. Corbin insisted that the duty OF a receiver
was TO wind UP an insOlvent company. not TO
continue it, and Mr.. Untermyer said the DEFEND
ants were bv the course they were taking, Try
ing 10 wreck the whole concern. He declared
the sbfnbufldins company owned all the plants
Of the several companies. and the officers or tbs
shfpbuiIdfng company might deny through the
receiver that they had any control over the
other companies. and thus Try to make the re-
ceiyer powerless to save the property
After further discussion Judge Kirkpatrick
s+r,clr or,t Of the form of the order submitted
b,, the complainant all reference TO the con-
s+i+ua1t conpanies and amended 10 so that tt
raads that the directors OF the shipbuilding
cor,Danv shall turn over TO the receiver all thu
assats thew in any way control. plants. stocks.
etc. connected with the defendant concern
TEXT OF THE OPINION
The opinion OF Judge kirkpatrick was hied
ir the office Of the Clerk OF the United states
Circui- Court al Trenton last night 1t says IN
part:
The connplainants aIIege that the defendant
company has large past due oohgations Whicn
ii is unable meet and has no IunlS WIN Wiz
To nav its maturing accounts 'i oltiS No$e-
oDd no means of securing extensions thereof or
q further credit; that its directors nave cetSt-
mined 70 make default IN the payment ot ne
interest maturing on the first day oi July on Us
bonded debt and have announced, that tne
directors Of the defendant company n1ee -
nisuranaged It's affairs that tne@ nave deslroseo
and produced CCndltlon OF li4SVtNci
Annexed to the bill OF complaint Is state
mcnt made to the public by the treasurer on '1s
company dated May -, l'u4 IN we'sl y p
stated that the cash requirements or the COM
many between the date thereof and august
next ensuing for interest and sinking Iuao
charges alone viii be $9fl, So - ana that @ tle
bills payable OF the shipbuiidins company
,,1otrripe between said date and August J. l3H.