New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-01-29
RUMORS OF Il scandal.
IVoU Street Scents 1t an american
Steel FOuRdTfeS Case.

The aetion Of the governing committee OF the
Stock Exchange in striking from the list the stocks
Of the American Steel Foundries Company was
widely discussed yesterday in Wall Street. and ru-
n,ors were heard of a financial scandal which
might develop when the whole history OF the case
should have been made public. The following
nounce-nent explanatory OF the action of the gov
erning committee, posted in the Stock Ex-
change:
Whereas, It appears from the report Of the COM
rnittee on stock list this day submitted that mis-
representations of an important character relating
Foundries at the time of its application for the list
ing Of its common and preferred o stocks upon he
committee on stock list in support Of said appca-
Resolved That in accordance with Article
XXXIII. Section 4 of the constitution. the common
dries be and hereby are removed from the list.
Joseph E schwab president of the Steel Foun-
dries Company. was in Boston yesterday, and Max
Pam. the general counsel. was called to Chicago
and may be out OF town for several days. a rep
resentative Of President Schwab said:
The original statement filed with the Stock Ex-
change on the application TO list the stock shows
3 mistake in the current assets as shown in the
Of 81 74s was an over-statement by 100000 This
mistake arose probably through a misunderstand-
about by change of ideas the part of the orig
sts OF w Ie Answered some time ago and the
Stock Exchange was at once notified they have
10 idea that any such drastic action would be
taken.
1t was said in other quarters that the mistake
was discovered by member OF the stock list COM
rnittee some time ago. when the company had made
application for the listing Of additional stock, is
sued for properties newly acquired. and that the
company had at first denied that error had been
made In the annual report Of the company. under
dete of September S, 1903. occurs this paragraph:
Drastic measures have been resorted to in ad-
tusting the accounts Of the company and during
the year many and discrepancies in the
accounts Of the various companies acquired by
this company have been corrected, and transposi-
lions made from current account TO plant account,
where they were properly chargeable to plant ac-
count.
Howard K. Wood and Kenneth K. McLaren, Of
the Corporation Trust Company. retired from the
board Of directors Of the Steel Foundries Company
nearly year ago, and were succeeded by Charles
N Schwab and E H Gary. Donald H. Mann
signed IN September, his successor being of the
Feabodys, Of Boston. Lewis Nixon said:
entered the board ar the request of Mr.. schwab
come time after the organization of the company
nave no interest IN il financially now, and never
90 nave beyond the qualifying share OF stock
ec as director. At the beginning Of the shipbuild-
ING troubles resigned as a director of that and
NUMBER OF other companies. From the reports read
e. meetings OF the company. ! would assume that
IL was II fourishing condition
There were sales Of Steel Foundries stocks on
INC curb market. but quotations were estab-
lisheo for both classes The common, which was
od and asked OF the Stock Exchange on
- eolescay, was offered on the curb AT with az
%, NE quotation subsequently being reduced -
- DID asked. The last Stock Exchange ouotao
10 1As = SlNTTeu was . BIO. Il A prjca
ssks5 Pc. 9ia Ior II on the curb 20 to A. being
bids for t. - 0 Nas '"ele were TO