New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-03-06
SCHWABAND PAN ANSWER
THEY ENTER DEMURRER.
DISPUTE Courts Jurisdiction iR Ship
building Equity Suits.

Two answers in the suits IN equity against
Charles NJ schwab. MIX Pam. J. P1erpont Morgan
and others. including Receiver James smith, IT. o.
she United States Shipbuilding Company. IN the
Tinted States circuit Court. were filed yesterday
by Guthrie Cravath a. Henderson. one demurrer
IN the interest OF Messrs. Schwab and Pam and the
other a plea Of lack Of jurisdiction. signed by M
Pam.
The demurrer was in che action against Messrs
schvab. Pam and others including Receiver Smith.
OF John A. c. Morris. Cyrus b. Lewis, James c
Mills. James McGuirk. John Young and Adolph
seeIig In entering the demurrer Messrs. Schwab
and Pam say that they do not acknowledge any
OF the matters contained I'm the bin OF complaint.
which they assert contains no cause OF action TO
eutite the plaintiffs relief In court Of equity
THE demurrer states that Messrs. Norris. Mills.
McGurk and Young. alleged stockholders. have not
stated any case emitting them 10 sue as stock
holders under ire Nlnety-fourth Rule OF Equity
practice, and that Messrs Lewis and Seelig are
simply contract creditors. whose claims have not
been reduced TO judgment to entitle them
20 relief against the defendants.
Mr. PANS plea is made the action OF Robert
u. Bradbury against J. Pierpont Morgan Max
Pam and many others including Receiver Smith
Mr. Pam urges that Tire court has jurisdiction
because tho suit Is not OF a civil law
in equity. in which there IL a controversy be-
tween citizens of different States. the complainant
Bradbury. and the defendants. George Z. Thomas
Edward ]. Stotesbury. James W. Paul. Jr.. and
Edward NJ Robinson. being all residents and cit
izens Of the State Of PennsyIl ania.
IL learned that. Notwithstanding the action
OF Judge Fitzpatrick I'm New-Jersey. the United
States Shipbulding foreclosure proceedings insti-
tuted by the Mercantile Trust Company as trustee.
against Receiver Smith and Charles NJ. Schwah.
in the Circuit Court Of this district been
disposed Of and that United States Commissioner
Shields. who Is special master I'm those proceed
ings the request Of counsel has been sdjournlng
the hearings from week 10 week.
According reports credited i'm Wall Street.
the probability is that Of the suits recently
contemplated by upstate owners OF United States
Shipbulding securities viii not after all bs begun
il Is said be likely TOO. that the bonds belong
ing 10 Governor Odell. which were advertised for
sale az auction last week and were Withdrawn
before the day OF sale. will be deposited with the
Sheldon reorganization committee. and Il Is be
neved that Charles II. kavanaughs bonds also VIII
be allowed by their owner TO remain in the hands
OF the committee.
Tho board Of directors OF the reorganized ship
building company viii consist Of nine members
three OF whom 10 serve for one year. three for
two and three for three years. II Is reported
that among the directors who TO be
lected by the reorganization committee Receiver
Smith ana the Morton Trust Company. acting to-
Illinois Central Railroad Company, and George e.
Bodt. OF this city. both members OF the executive
committee OF the Commonwealth Trust Company:
George r. Sheldon. chairman OF the Shipbuisding
reorganization committee. Max Nathan. Of the
bonoh0loere' protective committee and President
McIlvsin. OF the bethlehem Steel Company The
remaining members Of the board. according
panies ~ the United States Shipbuilding Company
who practical Shiphuilders.