The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-06-24
FIGHT FOR RECEIVER
The Case Of Conklin Against
the U. S. ShipbuiIding
Company.
(By the Associated Press

Trenton, N. j., June 22.-Argument was
commenced in the United States Circuit
court today before Judge Kirkpatrick in
the case Of the application of Roland r.
Conklin and Others for the appointment
of receiver for the United States Ship
building Company. Each side held big
array of counsel. Representing the com
plainant were r. w. Lindabury, Henry
Woolman and Henry Untermeyer Coun-
sci for the ship-building company were
Charles L. Corbin. Attorney General Rob
ert H. McCarter and Charles C. Deming
The case was opened by Mr.. Woolman
reading at length the bill of complaint,
the substance of which has already been
published. During the reading Mr..
Woolman brought out the facts that Chas.
M. Schwab had received for the Bethlc-
hem Steel Works 10000, 900, made up as
follows: $4,000, 900 preferred stock; $10.-
100000 common stock and $10.O00.00O of
collateral bonds. Judge Kirkpatrick asked
what the collateral consisted of, and was
told it embraced two mortgages. one on
the Bethlehem plant and another on the
Ship-building Company's entire property.
He made a humorous comment to the eff
feet that Schwab was well secured. When
the reading of the bill OF complaint was
completed. Mr. Woolman began reading
the exhibit in the case. one of which was
a statement issued by the Republic Trust
Company containing a very flattering
statement as to the company's conditions.
Mr.. Corbin objected to this exhibit as not
properly before the court Judge Kirk
patrick remarked that the statement seem
ed to favor the defendant, but that at any
rate it was immaterial as what the court
wanted to get at was the company's pres
ent condition and not what somebody
else thought or said was its condition
some months ago.
When Mr.. Woolman had concluded read
ing the bill of complaint and the accom-
panying affidavits Attorney General Nc
Carter arose to read the answer and also
the affidavit Of Lewis Nixon, the presi-
dent. and A. C. Gary, secretary of the
company.
The answer in the main is a general
denial of the salient points of the bill OF
complaint 1t denies absolutely that
there was any insolvency and states the
company was able to meet its obligation.
1t was stated that as arrangement had
been made, whereby bonds were being
issued on account of the Bethlehem plant
that the plant was not separately ac-
quired; that it was included in the sen.
eral purchase and that the promoter was
neither Nixon nor Schwab, but John w.
Young; that the value paid was a mat
ter of Judgment, and that good judgment
had been exercised in the purchase. 1t
was denied that any excessive prices had
been paid and the company denied that it
had made any exaggerated statement as
to the companys condition. The com
pany denied absolutely telling any re-
sponsibility for the statements put out
by the Republic Trust Company. The
statement given the New York Stock Tx
change, it was claimed, was given in good
faith while containing some errors that
were afterwards discovered and that
were immaterial it was denied also that
the company was under control of Schwab
along the lines indicated is the bill OF
complaint.
The affidavit Of Mr.. Nixon was a sweep
ing denial of the charges in the bill OF
complain.
Mr. Nixon specifically denied that ne
had any arrangements or understanding
with Mr.. Schwab.