Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-07-22
WOULD BE FATAL.
Bath Iron Works and Hyde
WindIass Co. of Bath
Strongly Oppose Appointment Of Re-
ceiver for U. S. Shipbuilding Co.
Would Close Plants and Entail Loss
of Thousands.

VI tidiiu, Nhe., July 81 ue suit III
equity of Roland E. Conlllin ct ais, VS.
the United States Shipbuilding Co., in
which the ancillary appointment for
the Maine district of James Smith, Jr.,
of New Jersey, as receiver of the COM
pany was asked, and the preliminary
hearing on the petition of the Mercan-
tile Trust Co. of New York VS. the Unit
ed States Shipbuilding Co., asking for
the the foreclosure of the SIG, 600, 600
mortgage held by the petitioners We're
heard, today, before Judge Putnam in
the United States circuit court. The
hearings were continued In the after
noon.
Samuel Untermeyer one of the coun-
sci for Receiver Smith, stated that the
trust or combination, which had been
formed was sham and had deceived
the stockholders, bondholders and man.
ayers of the plants which had been in
duced to enter the combine. That the
management of the coordination had
been disastrous and resulted in forcing
II into bankruptcy. The petitioners
wished for the appointment of Il receiv-
err to take possession of the assets and
collect the liabilities that something
may be realized.
The only remonstrance against the
appointment of a receiver was in the
form of a statement from President
John S. Hyde of the Bath Iron Works
and President Jacob Andrews of the
Hyde Windlass Co. of Bath. President
Hyde referred to the cruiser Cleveland
q
construction at Bath and said a loss
of hundreds of thousands Of dollars to
these plants would be caused if re-
ceiver were appointed, 1000 men en-
ployed therein scattered and the plants
closed. President Andrews agreed with
President Hyde and said that the APP
pointment of a receiver would be a ca
tastrophe.
George r. Sheldon, chairman of the
reorganization committee. was also rep
resented by affidavit protesting against
a receivership.
In the course of the informal proceed
ings Judge Putnam said to the oppon-
ents:
you have made your own bed, and
now you expect me to take you out OF
it,"
He said, further, that the owners of
the Bath Iron Works and the Hyde
Windlass Co. went into this combine
with their eyes wide open, and convey
ed their plants to the United States
Shipbuilding Co. The New Jersey cir
cult court has declared that corpora
ton insolvent and appointed receiver.
Under the common law this court in
Maine is bound to respect that title.
How could he fail to recognize it under
these equity proceedings? He hoped
counsel would answer this question in
a proper time.
For the petitioners n letter from Re-
ceiver Smith to the Bath Iron Works
cancelIng the latter's lease of the Bath
plant, under the stipulated five days
notice. was presented. with a view to
further showing that the Bath Corpor-
alton has no claim to it's shops.
Two of the attorneys argued against
| the petition in the afternoon session.
| The first was Judge Symonds, who
made an able presentation of the case
| of the opponents. He contended that
ancillary receivership proceedings cam
not legally hold in this case, and that
on the merits of the case receiver
should not be appointed A receiver
could do nothing that the management
| of the Maine plants cannot do. He could
be of no assistance whatever he
could not raise funds with which to
carry on the work between the periods
of payment on the work now in pro-
gress. He could simply close the doors.
Judge Symonds added, in conclusion,
| that if there is any relief out of this
difficulty, it is in foreclosure proceed
| ings now pending.
Hon. Orville D. Baker of Augusta, in
behalf of the two Bath plants, made an
| hours impressive argument in which
he set forth the needs and remedies of
| the occasion. He laid stress on the
government contracts, which are with
| the Rath contractors and cannot be as
signed or transferred. He predicted
crippling of the Bath industries if the
| receiyership scheme goes through.
The Iron Works payroll amounts to
s12 900 a week. the Windlass Co., $1,000
| a week. In the interim between pay
nents on the government contracts,
funds must be furnished to keep the
nlants going. The receiver could not
furnish this and there would be no es-
cana from serious. if not fatal, injury
| tn this famous Maine industry. j.
| In conclusion he said that the foun-
dations on which the appointment of
tho receiver was made in New Jersey
Iwas Insecure. The decree was based on
| a. New Jersey state statute Il
| Judee Putnam said that, while the
| primary question before MN semea 10
relate to the fulfillment OF exlstlng con-
trac he was also concerned ABOUT the
| future business of the Maine pants IN
question. No receiver or trustees could
contract to build big ships or TO com
nIete these in process OF construction.
Before adjourning court un.ii toi'ior-
row. when the arguments VIII De con
cluded, Judge Putnam rell, M h',t 80. - y
| not one learned in the ia"' out sood
! business man, whom you heeu u ,,eip
Won solve this perplexing prooiem.