New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-06-05
CALLS IT CONFISCATlON.
DEMANDS an INQUIRY
Gmtore Loeb Asks Bondhotders to
Oppose Shpbmlding Plan.

49, - Gre. mortgage bonds Of the United
States shipbuding Company Gustav I'oep' pi -,
* Nev-st has issued a circular TO other oohuii
es rrring them not assent 10 the proposed piaii
. ,organ,zat;on under which the present hrst
mortgage bonds of the shipbuilding company are
10 be given UP in exchange for new non-cunl"l0'i'
preferred stock. and the holders OF me pteseH1
second mortgage bonds (Which are secured a4so
by a first mort gage upon the Bethlehem steer pop
e-tv subject to underlying liens aRsregaois a"ou'
Is 81 g0I ere TO become the owners OF the Siip-
building couDany~z new first mortgage bonds. II
new capital IS needed" says Mr. Loen there Is no
doubt that rather than submit to sucn a conIiscd
+ion or their property is proposed hoIoers oL
thirty year first mortgage sinking fund gold oohos
u-o,,;5 furnish their share Of whatever money the
oo-,nan, needs At least they should be given
eo,,a' opportunity with other bondholders-
The circular issued by the United states SNIP
,,1s.- ,-,,,.ny ON June a 1902. in connection
,b ,l7a offering of So 100000 of the first mortgage
bonds for public subscription. said; These bohoS
are secured by first mortgage on the ABOVE IheIi-
toned plants appraised. as going concerns al
more than SeacoOeco. in addition 10 winch 1hese
companies pill have working capfa4 OF more
than & a0epo and the constituent companies nave
now on hand contracts for work amounting 10
more .ran $50 0p0e 90 which the pronts are est
mated at over $5ooo7re. or more than sulclent 10
nav interest on bonds and sinking fund for I'VE
years These plants are earning S2-22Soo0 per an
NUN on the contracts now on hand. and have
abundant facilities for additional work and in
creased earning capacity.
Against these preliminary estimates Mr., Loeb in
his circular places the revised figures Of the re
organization committee. saying:
In the circular Of the reorganization committee
dated Nav - 1903 told that the earnings
ain be $50 600 annually that the contracts on hand
10 nav its Interest obligations on these bonds July
! 1903 that it has been necessary 10 oeauct 9i1e
sum OF s. S1 424 20 from current assets These DIS
crepancies are starting
He continues:
We have been grossly deceived ana now We are
asked to give up our securities WITHOUT
aycArfins few worthless geneTaIlueS II the COM
psny is overcapitalized and there are eXeeSsi ;
mortgage cbhgatlons aad mere are etS Ta genif
explanation including statement O va ~ ce
promoters OF the cohpey into its affairs
by 2 fearless committee
Nj Loeb therefore asks holders OF the first mort
gage bonds 10 organize for their own protectoh-
ard saws that committee TO take necessary ACTON
viii soon be formed CT,
rr,ildiag Company. in his recent letter TO George
? sheldon chairman Of the reorganization com
rnIttee, said:
r;-o. submitting the balance sheet OF the United
States shPbuiding S0P9E 81 to deduct from
he working capital items OF contract Work m con
sTge9 Sum ao of 1SSG2'S AND and Charge the
cost Of plant This was because OF eTLols o1s
covered in the reports made concerning me GoIiI F
.sor ~ fha different companies at the fcTnlatoh OF
the United States SEipbuilding Company
A. the office Of w T Simpson. RlddeI & Com
mon. IN the Mills Building, the accountants who'
in advance of the formation OF the 9,9 o
tracts for work IN hand of the several
concerns now in the United states. ohlpDallo,es
~erra7 n bv Mr. Gary could not have been such as
,3on and II was added that the firm had had moth
ing 10 do with the aPpralseTnent OF thf NsrlpuS
plants. and did not know who the appraisers hao