New-York tribune., 1903-06-15
THINKS SCHWAB BLUFFS.
:" SPIDER AND FLY GAME.
Nagon Called on to I'aLc Back Goods
and Return Money.

-rto bear;re- on the apuiicafion for receiver
,o- .,,e T-ri+as States Shipbuilding Company has
been postponed for week 1t was to be bearu
in the United States Circuit Court in Trenton
today AS TO who would be appointed receiver
in case Judge Kirkpatrick granted the aPPica-
fiov no one would say yesterday, out one Oh 'ne
counsel for the applicants declared that it would
protably be man whose name he couio i'ol
,eu but who had no connection with the conf
panv.
-rba,e &c a great difference Of opinion regard
inr- the receivership proposition Those behino
Inc sheldon reorganization scheme MAINTAIN
thai il is unnecessary. Gustav Loeb ooho-
holder. who says he represents bonds "orlh
y. 100000 believes that the depiorabie cohui-
lion OF the shipbuilding company is attTiou'aoie
IA the exorbtant prices paid for shipYards take"
INTO the combination when il was organized In
This connection he asked:
VIII Lewis Nixon dese-t the SINKING snip VI
"a, -. mako as fair an offer as Schwabs. TO
take hack his goods and return the money AAe
original underwriters were cheated. he went
-, ..Y,r,oee were maid far in excess of the value
of The wards purchased. There was one factory
si,o down AZ Cartaret y. Jan empty building
md some marsh land-for which the owner re-
,.ei,-ad 5000 600 in cash and S|rVeo IN hrSt
mortgage bonds and like amount in prelerIeo
and common stock Then there was johnny
Carrolrs yard, at New-London' bought lor
good price 7 am not in favor or receiver l"i
T don't thinF one is really necessary one ihihs
is certain though-the management VIII never
he able 10 show what became Of the Ss,looeoo
fron, tho sale Of S9o00.000 bonds at 30 1t Is
r,ossihle that there will be investigation as
~ those exorbitant prices. but it all goes back
-, she orpanization. There is nothing in those
stories about criminal charges
Il think it would be good thing if Sehwab
would take hack his Bethlehem plant as ne
agreed We could buy steel cheaper than we
could make IL ! think.
r Y. Iindabury. one Of the lawyers for the
cornplainants said his clients. too thought IL
would be an excellent thing if Mr.. SchWab would
do This, but that in all likelihood his offer was
only a bluff and II it were called SchWan
friends would say they needed the Bethehem
company in the shipbuilding company HIS
clients Nj Lindabury declared. were indignant
over the high prices paid for the plants taken
into the concern. and the false statements cir
culated in the prospectuses about the values OF
the securities
Mr Schwab said yesterday that he had notn-
ing 10 add to his statement. which he considered
full and candid. I'm greatly surprised at this
r11mpus" he added. 4 bought stock in this
concern believing il WAS all right then went 10
Europe l came back here. still having faith In
it, and run into this nest of disagreement 80
YOU can see, / have some reason Tor SURPRISE
but I'm willing 10 make good
Samuel Untermyer regarded Mr.. SchWabs
statement as very pleasant from his view
point But said he. 1T reminds me OF the
old suider and fly tale 7 only hope the first
MORTGAGE bondholders won't play the fly to
Schwab's spider. l particularly admire the deft
way in which Mr. Schwab has woven the all
powerful name OF ]. P Morgan & Co into his
statement