The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1903-11-02
hyde windIass compny Of Maine, all

contracts OF indemnity In connectloh
with contracts with the government
were to be assumed and the present
stockholders o. the said Bath Iron
works reserved that portion of profit
earned on the monitor Nevada and
the cruiser Cleveland" and still unpaid
ON account of reservations by the gov
eminent. Edward w. Hyde, John S.
Hyde and J. r. Andrews were to be en-
ployed for five years at $4,000 per an
mum. s4
The entire capital stock of all these
companies was to be turned over, and
Mr.. Young agreed that they should be
free and clear of all Indebtedness ex-
cept current indebtedness incurred in
the usual course of business" except In
the case Of the Harlan & Hollingsworth
company, where s156,O0O in mortgages
and further disbursement of $10,0OO.-
900 was TO be paid out of the surplus
earnings Of this company. The "cur-
rent indebtedness" assumed under the
agreement, it later developed, was over
$2,000,000. e.
In the case of the Bethlehem compa-
ny the offer was made on condition that
stock of the company was to be depos-
tied with the New York Security and
Trust company in trust. A trust deed
was to be issued upon this stock which
should be first lien upon the stock
and second lien upon the property
and plants of the other companies--in
this latter case mortgage upon them
to secure a bond issue of $16,000,000 hay
ing priority. Holders of the Bethlehem
bonds were to have right to vote at
stockholders meetings on an equal foot
ing with The stockholders Of the Ship
building company.
On the Bethlehem property $10,00000O
worth Of bonds were to be issued and a
mortgage and single bond to be exc
cuted to the New York Security and
Trust company to secure these, and an
agreement executed between the Beth
lehem Steel company and the Ship
building company by which the latter
company should undertake to guaraIl-
| tee, so long as any Of said issue of $10,-
100000 bonds are outstanding, that the
Bethlehem Steel company should pay
dividends upon its capital stock at the
rate of three dollars per share per year,
1 a5SIC6dbiii6 tsIl 11htloct dtftUCsss LVtASAt-
button of 100000, and for that purpose
| the company would supply the Bethle-
hem Steel company any business and
means of earning to enable it to pay
this dividend, should such become nec-
lessary, or advance sufficient money to
make the dividend payment. Such
advances might be credited on any
work which the Bethlehem company
might thereafter perform for the COM
pany. So long as any Of said issue OF
| $40, 600 bonds remained outstanding
the Bethlehem Steel company should be
protected in keeping on hand and main
| tanning cash or cash assets of not less
than $4,000 working capital, and the
company should remain an independent
and distinct corporation and not be
merged in or consolidated with the
ShipbuiIding company or any other COR
poration, unless such merger or consol-
lidation should be consented to by the
holders of not less than rs per cent. OF
1.-THE outstanding bonds.
/ BY this agreement, the receiver con-
tends, the United States Shipbuilding
company was placed entirely in the
tcontrol of the Bethlehem Steel compa-
my and it's principal stakeholder
| Charles M. Sehwabs Mr.. Young was tt
turn over to the shipbuilding company
/ in addition, to the capital stock of these
plants, 81, 100000 for working capital ane
/ ST. 100000 in bonds of the United States
/ Shipbuilding company to be held as
4 treasury assets and disposed OF for
working capital or other purposes OF
1.-THE company, and would accept in full
consideration s19,99S,500 in preferred
stock and $24,988,500 of the common
i stock Of the company, S16,00o,0oo par
value of first mortgage five per cent
sinking fund thirty-year gold bonds, Sc
i cured by a mortgage upon all the prop
erty and plants of the companies out
side of the Bethlehem company ane
$10, 100000 in five per cent. twenty-yeai
gold bonds, secured by a mortgage up
on the Bethlehem Steel company.
Upon the receipt Of the offer, says
the receiver, the directors above named
| holding no stock whatever in the com
Dany but at most a mere subscriptivt
fright, by assignment of one share each
ladopted resolution which in effec
ACCEPTED the officer as made and in
creased the capital stock from $4,000 tt
$45, 0O0,000 s28,000,000 preferred and SIS,
900, 900 common stock; executed the ST.,
100000 mortgage on the Bethlehem
plant and the s16,O0O,eO0 mortgage OF
the other plants as specified and deliv
cred the corresponding bonds and al
the stock except fifteen shares of com
mon and fifteen shares of preferred t
Young. This action was ratified b.
the stockholders OIL July 81. 1902, ant
between August and IL the transac
ton was consummated by the deliver,
Of the capital stock and plants of TIL
constituent companies Leases wer
later executed, conveying the plants t
| the companies for purposes of opera
ton. the profits to be turned into tn
combined treasury.
Z The resolution Of the board of direc
tors accepting Young's offer was statet