Evening journal., 1903-07-02
SMITH IS MADE
TRUST RECEIVER
Ex-senator Will Take Charge
of the Big Shipbuilding
Combine
NO SMALL TASK CONFRONTS HIM
Judge Kirkpatrick Decides He Will Not
Have Control Over the Subsidiary
Companies-Direetors Continue to
Meet in Mr.. Nixon's Office.

New York July Judge Kirkpatrick, in
the United States Circuit Court at New
n. j.. yesterday appointed ex-Unlted
S Senator James Smith. of New Jer-
sey, eceiver of the United States Ship
building Company.
The appointment of Mr.. Smith has been
expected for several weeks by those who
had an intimate knowledge of the proceed
ings instituted by Roland 3. Conknn and
others, which resulted in the company be-
ing declared insolvent by the court.
In the appointment of a receiver Judge
Kirkpatrick orders that all the ship COM
pany's property, business, shares of stock
dights.' assets and holdings be turned over
TO MIN. Ex-senator Smith lives in Newark
and is rated as one of the wealthiest men
in New Jersey. He went to the United
States Senate from this State in 1892, beat
ing Gcv. Leon Albeit for the office. tt was
while he was a Senator that Judge Kirk
patrick was named for office. Judge kirk
patrick is also a resident of Newark
Both sides in the recent fight for and
against the appointment of receiver were
an court when Judge kirkpatrick arrived
at IL a. m. II. w. Woolman, for the COM
plalnants, began the proceedings by an
houncing that counsel for the two sides
had failed to agree on a receiver. Mr.
Woolman was followed by Charles c.
Deming, for the company. He declared
that his side had no suggestion to make
as 10 who the receiver should be, and ad-
ded that he. on behalf of those he repre-
sentad. still protested against the Court s
intention TO make such an appointment.
In answer, Mr.. WoOlman suggested that
only a man capable of bringing the cor
poration from state OF insolvency 10 one
of solvency was desired.
Judge Kirkpatrick began his formal an.
nouncoment of the appointment by saying
'rhe receiver VIII have at the outset OF
his taking hold of the United States Ship.
building Companys affairs no control ovei
tho subsidiary concerns His duty will bs
merely to control and manage the affair.
of the United States Shipbuilding Com
pany. The receivers first duty will b,
to cXiricate the company from the hnan
cial difficulties into which il has fallen d
I'm looking around FOR "a man capable OF
such task, continued Judge Kirkpatrick
he had found I'm Mr.. Smith a person O,
high esteem in the community and on,
capable of securing the necessary credit
for such an undertaking. Bond for Mr.
Smith as receiver was placed at 100000.
The fact that Judge kirkpatrick did no
include the subsidiary concerns of tn,
shipbuilding company in the receiver.
management Is taken to mean that tn,
Bethlehem Steel Company will remain out
side OF his control This was the conceri
which Charles NJ. Schwab was alleged 3,
have bought for SSOOO.OOO and sold to thi
ship company for SSO,OOO,O0O. getting SO.
1000 worth Of first mortgage bonds in IN,
concern.
Directorsl of the company held anothe
meeting in New York, but adjourned with
out action. Those who attended the meet
ing were Lewis Nixon, Charles r. Hans
com, of New London; Charles w. Baker
Of New York; Joseph Z. Schwab. Archi
bald Johnson Adolphe e. Borie and e. NJ
McIlvain, of South Bethlehem; Marshal
r. Rand, Of Rittsburg. and Max Pam, o
Chicago. Charles NJ. Schwab was not pres
ent. Mr.. Nixon was urged not to press hi
resignation as. president Of the compan,
an dthe resignation was not acted upon.