Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1904-03-16
SHIP COMPANY REORGANIZATION
Over $13,000,o00 of Bonds Deposited
Plan Assured.

New York, March 15.-The reoraaniza
ton committee OF the United States Ship
building Co. has announced that $13, G92.
600 of the $14 800 900 first mortgage bonds
have been deposited with the committee
and that other bonds to the amount OF
over S7Jo,o0n have been offered for de-
post and are under consideration by the
committee. All of the SI0,OO0.000 second
mortgage or Bethlehem Steel bonds have
been deposited. William Nelson Crom-
well, counsel for the committee, says that
the success OF the plan is thus assured.
1t is understood that j. K. MciIva;nc.
president of the Bethlehem Steel Co., is
being considered for the presidency OF
the new company. With the reorganiZa =
ton committee and Charles Nj. Schwab
supporting him, Mr.. McIlvaine's chances
of becoming president are considered eX-
cellent. So far as can he learned, Lewis
Nixon IS not being urged for the place.
He has said himself that he regards 1t
as unlikely that he will return to the
management of the company. though at
the same time he said that he was not
disposed to dispute the validity of the
lcompany's claim to his services under the
hVe-year contract with him.
1t was stated in Il Wel-nformcd quar-
ter that the $750.0G0 bonds which the com
mittee was considering for acceptance has
been offered to the committee with Ger
tain conditions attached. The committee
has steadfastly refused to accept any
bonds which were not offered unquali-
f!edly in exchange for the securities of
all other depositors. The conditions re-
ferred to arise out of certain promises
made by lie Roy Dresser and the Trust
Company of the Republic to some of the
vendors. II is expected by these in
charge of the reorganization that the
holders of the S1o0.0OO will waive their
There is. of course. no prospect that the
properties will bring under foreclosure
sale more than enough to clear the float
ing debt.
Tho ranorya1 co1oot;on IF ,,;no ,,,o,,,Lor-
of the board of directors is declared by
Il number of the reorganization committee
to be without foundation. He asserted
that the identity of the directors had not
even been considered. although he admit
ted that those on whom the election of
directors will fall might have matured
their individual ideas about it;
In quarters close to Charles NJ.
Schwab it is asserted that he will he
largely represented in the makeup of the
new board and that in all probability he
will be asked to take an active part in
the management of the company's opera
tons. particularly on the steenaking
side of the business. The member of the
reorganization committee above referred
to. when asked if Mr.. Schwab was likely
to become president of the company. re-
piled:
NO, ] do not expect that he will be
come president and | don't know what
his office in the new company would he
called if he should he persuaded to take
hold. nor have l any idea when he will
return lToIu Europe. MdIiS VI lHt HleHi-
hers of the committee recognize that no
ADLER steel man can be secured and hope
to see him give the company his ser
vices. The work of celaring legal obsta
cles to the reorganization is progressing
rapidly. but there is a bewidering mass
of detail to be gone through and if the
company is operating under its own d
rectors by June it will have done WELL
A report was in circulation downtown
to the effect that the slSS.00o shipbuilding
bonds belonging to Gov. Odell, which were
sold at auction, Wednesday. We're bid in
for the owner and nave been deposited
with the organization committee. The
explanation was advanced that the gov
ernor desired to take the legal steps
which would enable him to sue for the
difference between the subscription and
sale prices, should he decide to take fur
Their action in the matter. The report
could not be verified.