The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-11-03
Receiver Calls Ship-Yard Trust
B Fraudulent Organization for
Wholesale Plumber.
GAVE AWAY MANY MILLIONS Il
Suit is Urged Against schawb
and Others Who Got Stock
in Wrecked Corporation
Without Paying for It.

L u
flotation Of the wrecked United States
shipbuilding Company-otherwise the
ship-yard Trust-is defined as an artistic
awindie," designed for Wholesale plum
DOR" In the report OF tho receiver James
Smith, Jr. That report was filed in the
United States Circuit Court Of New Jer-
sey Saturday.
Deliberate misstatements. Justification
and fraud Of various kinds, in an at
tempt to udslead and deceive the invest
Ing public. and in q plan to wreck the
corporation, was charged by the receiver.
Charles NJ. Schwab's sale OF the Bethle-
hem steel plant to the shipyards Trust
or, rather, his taking over" OF the trust,
is exposed. Suit against schwab, as we'll
as against other promoters and vendors of
constituent companies who received stock
without paying full value for It, Is one
of the strong recomm tons as a plan
OF relief.
SECRETS DEAN ARTISTIC sW1NDLE.
Organization being described as an ''ar-
tlstic swindle," these allegations are set
out
That the value Of plants their earnings and
working capital given in alleged thorough re-,
S .as 70 inpeii tAe belief that tho figures
weIe wilfully misstated. :"
valuations were submitted at the organization
| OF the corporation which was effected oy
dummy stockholders directors ana onfG Ge1n.
That statements In tho prospectus OF Suuo
| H. 1902. were incorrect
That for property worth only 81, HIPS ne
shipyards trust paid ss7.ss7.ooo 10 stock ana
piKEoToRs CALLED Accon 34sa.9l.a y +.
That the accommodating aireSsot OF ure
| %r,~k fv,o rin0
away many millions Of dollars IN stock and
bonds OF their company-wholesa plumber
that. Is far a. tb. Bethlehem Steel Com,
T Tn'ss st n
Receiver Smiths Recommendation and rea-
sons for them arc:
cause Of controversies a. to the validity OF en- on
cumbranees upon them. the Crescent snipSaI oi.
Eza4stn u w arG me mat pe be sold
l'ns'#ssT 6fF ySfS 70 !: REEc es MoSEy: I.
That soon as the debts OF tns , Eo ~ ~.
stock OF this company without paying fuii
s sa,ae t9 q. necessary to pay the debts full
That That suit be- instituted against the Bsthle.
hem steel Company 4 70 he
of the earnings Of that company by way OF
| dividends on the stock
Taking up the cor porasi.o On -. .he ol.s
i inal company by dummy" directors and
oflcers In June, 1909. with $500 ca p1taI,
Recaiver Smith tells OF the offer Of John
w. young, promoter, to sell to It the
Union Iron Works, OF San Francisco; the
Harlan and Holllngsworth Company, OF
Wilmington, Dell; the Eastern shipbuild-
ing Company, the Canada Manufacturing
| Company, the Crescent shipyard Com
nany and the Samuel l. Moore and Sons
Company. OF New Jersey; tho Bath Iron
works and the Hyde yvindlass Company,
| ~ Maine. and the Bethlehem Steel Com
pany Of Pennsylvania
i "BOYs" BUY MANY PLANTS.
That offer, of course, was accepted blythe
so-called .'boy directors'-Howard Il.
Wood. Howard s. Gould and Kennel Il.
McLaren. of Jersey City. They held coll
!!lectyely fifteen shares each Of common
and preferred stock. Then It is told how
the 'sboys'' added to their number Fred
4 eriok X. Seward, Raymond Newman and
Louis B. Daily. all employees Of the Cor
poration Trust Company, OF New Jer-
sey.
One of the things according to the re-
ceiver, was a report that the amount OF
construction work on hand was more than
$50, 900 900; that the estimated profits on II
were 5000, 900, and that further business
should produce 100000 yearly. The ex-
pert report Of the Bethlehem plant fixed
i Its earnings at 600 yearly, with bust.
ness for three years in advance,
Receiver Smith asserts that tho exa1ni.
nation OF subsidiary plants later resulted
In figures much at variance with the ex.
pert reports. He declares that II Ia doubt.
full IL any expert report was really made
j IN the f1.Sv direcfors