New-York tribune., 1903-06-17
ACCEPTS SCHWAB OFFER
BUT NAMES CONDITIONS.
Anszcer of Mr. Untermyer-Pros
ress of REORGANIZATION Pldn.

curity holders who are seeking the appointment
Of n receiver for the United States ShiPouio
ing Company, his return last night ifoiii H
ton issued a statement accepting, on certain
conditions, the proposition contained III the
open letter addressed to him on Monoay oS
Charles NJ. Schwab. who in this commune
ton offered to surrender the S1O,0OoOoO of bonds
and S1O0O0OO0 of each kind OF STOCK OF tne
United States Shipbudng Company Whlch
were received bv him and J. p. Morgan q Co.,
if in exchange there were delivered to him (Mr.
Schwah the 100000 shares of the capital STOCK
of the Bethlehem Steel Company now deposlted
with the New-York Security and trust COM
panv under the mortgage. Mr.. Untermyers
statement s follows:
Charles NJ Schwab. Esq. :. r,o4o, TO-
day to a letter published in the newspapers,, d az
dressed but which nave pot @ ye. sert me
hasten to reply that your letter will be pIeinpLS p
placed in the hands of the % o the appoint
of receiver he will be urged 70 preet ptit of
the court The desired result would be accGm-
pshed in that way with M the s5d enthus
astic support of the interests represented py NY
associates, Messrs Henry Woliman' Klchar' y
assume that the first mortgage bonds ar and the the
which are pledged to the sheldon committee will
also assent to the arrangement Is Is the claim
of stock liability against you on the $zoV0V@Vo @ M IL
sis upon such release as condlrlon % o tIfIH hnw
back the Bethlehem property ~, II =, So6 Se reserved
there ought to be no complication ana no cohsiue-
We are willing for the purpose of avoiding litiga- ga
ton, to urge that you be released from that ia
factorly adjusted. Among these details ga, are: or
First.That you repay to the Shipbuilding com com
pany the moneys withdrawn from it for the WORK TX
ing capital and the so-called bettermehtS OIL the
secondMTRat you account for any excessive
profits of the Shipbuilding company. ., tho
transactions between the two companies; to tne
end that both companies be restored to tne saho
Fourth-That proper provision be made for the
competio9 of the work now under way & a9 Rtbehe
company for the Shlpbuilding company at reasoi'-
As the Bethlehem company has contributed moth
ing to the resources of the Shipbuildng company.
and has on the contrary drawn largely on lne re
sources of the latter for it's support notwtnstano
g @ the f ice of these Conditions In
the adjustment of a transaction of this magnitude
fhfrf bn these wi osf not to 0f be dc1 to adjust
n order that hat the sgfGt "a the be PT0eeye PF0y 'ea9 eo
mittee and time lost. will you kindly inform me
whether the suggestions mere oreIS my @ 0nLneq rv 5 o1
the cooperation of the first mortgage bonds ana
the stock owned and controlled by you and your
friends in the Sheldon committee? -,-,-
SAMUEL UNTERMyER
Mr. Untermyer in answer to question, said
that the membership of the protective COM
rnittee would probably be announced tomorrow
a
commencement exercises of the Pennsylvania
State College
1t is understood that there is now likelihood
that the Trust Company of the Republic, which
holds about 81, 100000 of the shfpbuilding COM
pany's first mortgage bonds, may give in its
adhesion to the reorganization plan Its mold
ings added to those already controlled by the
reorganization committee, it is said, would give
the committee clear majority of the outstand-
ing bonds
The following was given out last night by
man associated with the bondholders:
1t has been further learned that three hundred
thousand shares Of Bethlehem stock which MI;
Schwab sold to the shipyards company for $S0OoVo
Which w time ' the steel company was organized that
only 81 was paid in on saen @ m serf ch snare
ing to over s40O0006. The stock has been generally
pears from a statement made to the Philadelphia
Stock Exchange in October, 1901 when the STOCK STOCK
ance h has ever since been paid said to fur
should not be taken over by another new or reo1 +i
to cali Of sl4O0O0N0 if the steel company should
trouble 1t has been b hr
important circumstance in Fecompenqhmg Sha5 'iat et ii
first mortgage on the properties of both companies
John w. Gates who arrived here yesterday
on the Kaiser Wilhelm II, when asked in regard
TO the affairs of the United States Shlppulidlng
COMPANY said he surprised that there
should be any trouble between Mr. Nixon ana
Mr. Schwab. Il think they will get together;
he added land patch it up. 1 own only trltfe
of the stock of the company: few thousand
shares" ~,
Commenting on the assertion made by Mr.
ITntermyer that in resigning from the pres-
dencv OF the United States Shipbuilding Com
panv Lewis Nixon deserting a sinking snip.
a friend OF Mr. Nixon said yesterday that MI
Nixon's resignation. which was presented before
the litigation arose, was handed IN because MI
Nixon was not willing to accept the office from
the proposed voting trust of five who are TO con-
troll the company after July 1 under the re-
organization pIar. The president of the COM
pany under such a plan would he too much
under the control Of the committee to make the
office att active to Mr.. Nixon this friend added
United States Shipbuilding Company per
cent bonds the last preceding sale Of which was
at ~ were offered down from 40 to 20 in the
curb market yesterday. There was a sale Of
three bonds at 201A. and another sale of less
than five shares-the amount necessary for es-
tablishng a new quotation-at %