New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-02-06
NAY OPPOSE NEW PLAN
TRUST COMPANIES VIEW.
.Shipbmlding Stockholders Talk Of
Criminal Prosecutions.

With practically every point insisted on by
Samuel Irpter-nyer conceded by the Sheldon
committee and with Mr.. Untermyer and his
clients now aligned with the Sheldon committee
in support OF the amended plan Of reorsaniza-
ton OF the United States Shipbuilding Company,
II is the general expectation of Wall Street that
that plan will soon be carried into effect That
rcorra nizat.on can be effected without further
litigation. however. IS not certain The Com
rlonwealth Trust Company. successor 10 the
Trust Company OF the Republic. holds S1oOoOOO
OF the shipbuilding bonds. which were deposited
with the Sheldon committee under the original
plan Whether they will be turned in under the
amended plan or whether the company will be-
Iieve it TO be TO sts interest TO ask the court for
permission TO intervene and oppose the forecloc-
ures viii probably depend on the decision of
stuyvesant Fish and George c. Boldt. who were
yesterday appointed by the executive committee
as q special committee TO consider this question.
The Commonwealth Trust Company also holds
$4,000 OF the bonds and about SS.0ooo00 OF
the stock OF the shipbuilding company. its title
to part OF which is said TO be clouded by the
claims Of holders OF the interim certificates"
and others.
It was reported yesterday afternoon that a
firm CT lawyers not heretofore identified with
the shipbuilding litigation was about TO bring
bondhoiders, taking up the fight where the
bondholcers' protective committee had left Il;
but this could not be confirmed. Ii is under
stood 10 be more probable that this action. il
instituted. will be begun in the name Of stock
holders Of the shipbuilding company, and II Is
said that in that case civil suits may he urged
against the persons and institutions on whose
representations the stock was purchased. 1t is
estimated that about 100000 of the shipbuild-
ing stock was sold in the open market and prt-
vately.
The programme for the carrying out OF the
new plan of reorganization has not been fully
decided on get, there being some slight, but
friendly. differences of opinion among the here
torore opposing counsel as to the best way 70
wind up the litigation and lquidate the COM
pany.
The case will come up formally in court, and
one plan is TO consolidate all the actions and
foreclose the mortgages. The receiver Will, OF
course. manage the matter. Withdrawing his
answer to the various foreclosure suits Fore
closure OF the mortgages is necessary before the
plan can be put IN operation.
Reports are current that some Cf the stock
holders Of the shipbuilding company are seri-
ously thinking of joining IN actions criminal. or
quasi-criminal. involving fraud. against two or
three OF the men who had much to do with the
1t IS learned that a representative of the State
Banking Department recently went over the
books OF the Commonwealth Trust Company and
certain other banks and banking institutions I'm
wall Street examining into the details Of the
bookkeeping arrangement by which credit OF
s.. 10000 was created for the shipbuilding com
pany. A former officer Of the Trust Company OF
the Republic and n former officer Of the ship
building company have both been at Albany
lately. and u is believed have made certain
sworn statements which may figure later.
It was estimated yesterday by one Of the lead
ing shipbuilding interests that the expenses OF
the long litigation. the end OF which is now In
sight would be found TO aggregate fully $780,
600 most Of which must be paid for by the re-
organized company.
4 man prominently connected with the ship
building litigation yesterday estimated that
Charles VI. Schwab had given up even more
than he had been credited with suTrendering IN
the settlement OF the fight Mr.. schwab IS to
receive 100000 of the new preferred stock
and $1,000 900 az the common 1t is figured that
the preferred win be worth about 80 in the
market. and the common about - after the re-
organization This would be about SSoDOo-o
in round figures. OF market cash value FOR Mr..
S, hwab. Besides the S20.O01.OOo Of old stock
which has been. Of course. worth almost moth
100000 Of prior lien bonds Of the Bethlehem
Steel Company and about S4.Joo0oo in actual
cash. represented 10y the accrued interest on his
bonds and the earnings of the Bethlehem plant
His Bethlehem bonds are not the market
but are worth nearly par. This would represent
the giving up OF at least S6,0coOoo of value for
the reorganization. as well as losing the con-
troll OF the new company.
Mr.. sSchwab II was reported yesterday, left
the city late or Thursday night. after the set
tlement, for rest at New-Jersey coast re-
sort.
A block OF the first mortgage bonds OF the
United States Shipbuilding Company was sold
on the New-York ST. K Exchange yesterday. the
! first transaction in Shipbuilding securities OF
any kind many months. The bonds brought
-, the highest price since the collapse OF tho
attempt 10 market the securities over year
ago and since the fight began
The bonds have sold within short time al
( L. and between tina; figure end 90. There waa
n two point rise on the curb. but the sale on
{ the Exchange marks a big advance. the first
effect OF the settlement the new Plan OF re-
OF .amiZati0n.
/ SHIPBUILDING PLANT MAY CLOSE.