New-York tribune., 1905-01-05
SMITH WANTS $500, 900.
Fee for Ship Trust Receiuerslap
ErorbitaRt," Saus McCarter.

Richard V. Lindabury, counsel for James
Smith, jr., receiver for the United States Ship
building Company asked Judge Lanning, in the
United States District Court at Newark yes
terday to award a fee of 900 to the
ceiver. Mr. Lindabury reviewed the work OF
Mr.. Smith as receiver told of ;he long Journeys
from Maine TO California which Mr.. Smith had
been compelled to make in settling the affairs of
the company spoke of his genius in dragging
the wrecked corporation out of chaos and put
ting it in order and declared that the fee asked
would not be too much for the great work that
had been accomplished Mr.. Smith, he asserted.
had brought the property from purely chaotic
condition TO "a situation that the whole world
approves"
Attorney General McCarter. as counsel for
the Sheldon reorganization committee. strongly
opposed the application. He said that the sum
asked was eXorbtant. Mr.. Smith was a lay
man, he declared, and all the legal work had
beeh done by counsel, who of course, would also
ask Tor remuneration. He declared that 100000
was more money than the Chief Justice and all
the associate Justices of the United States Su-
eeivership. Mr.. McCarter referred to ex-Sen-
ator Smiths active work in politics and finan-
clal matters in the time of the receivership, and
declared that much of the active work had been
performed by the receivers assistant, Mr. Deg
nan. He suggested that, Mr.. Smith was
not IN court to give personal testimony the
court could refer the matter to a master so
that the testimony might be taken as to actual
services rendered. Mr.. McCarter said that the
total cash which will have passed through Mr..
Smiths hands as receiver and master will not
exceed 81, 10000; that "he did not stride over
the great world like huge Colossus, and visit
the various plants take their receipts and pay
on the men," and that he had been appointed
receiver for interocutory purposes only.
Mr.. Smith. he said, under bonds for only
S1OO0O0 He alleged that the Union Iron Works,
In California. the Bath Iron Works. in Maine.
and the Hyde Windlass Company's plant, in
Maine. wAre never really in Mr.. Smiths possess
sion, and that they were operated by the direc-
tors OF the active corporations The courts, he
said, had refused TO turn over these plants to
the receiver. Mr. McCarter further declared that
the credit for the resurrection of the company
was due to the reorganization committee. and
not to ex-senator Smith Counsel agreed later TO
submit the question of Mr.. Smiths fee to
ter, who is to take testimony and proofs and
then report 10 the court. A decree which
issued to that effect by Judge Lanning gives Mr..
Smith the right TO hold whatever fee is allowed
first lien the S300,O 900 of the shipbuilding
company SIN oney which he holds
Ex-senator Smith was appointed receiver of the
United States Shpbudng Company by the late
Judge Andrew kirkpatrick On July l. 1903, and
gave a bond of 100000. The receivership was
granted on the application of Roland r. Conk-
lin, Max Nathan. Jacob W. Mack and other
holders of securities \of the company Within the
last few months the first and second mortgages
of the old United States Shipbulding Company
have been foreclosed. the plants and securities
of the various subsidiary companies have been
sold at auction, the purchaser being the reor-
ganization committee. and the Bethlehem Steel
Corporation has been incorporated as success
sor to the insolvent shipbuilding company.