New-York tribune., 1905-03-04
JOHN W. YOUNG NOW SUES
NEW .SHTPYARDS TROUBLE
Case Promises to Disclose More or
tx Trust Transactions.

Notwithstanding the many rumors OF settle
raent Il is evident from suit filed late yes
.erday afternoon. in the United states circuit
Court that the affairs of the United STATES oHip-
building Company are still in an entangied con-
di,ton and that more of its transactions are TO
be made public. notwithstanding the sudden ter
rnination of the suits brought against Charles NJ.
Schwab and others by ex-senator James Smith,
the receiver of the corporation. appointed by the
federal courts.
The suit filed yesterday by Dittenhoefer, Ger
Der & James in behalf Of John w Young, the
principal promoter of the company, asks for an
accounting OF S60.995.0O0 of the securities or
the unfortunate corporation from the Mercantile
Trust Company. its trustee This suit Will ac-
cording TO one of the former officials of the
shipbuilding company. lift the lid" and
through the agency of the federal courts, bring
the coupar1v's transactions into the limelight OF
publicity Mr. DNtenhoefer. who was at his
Office yesterday for the first time after an opera
ton which followed fall. declined to discuss
the suit
Asked if the result of the accounting would
not be 10 lay bare the transactions of the ship
building company Judge Dittenhoefer smiled,
and replied:
You have read the bill of complaint. I pre-
suuae. 1t is file in the clerks office of the
United States Circuit Court. and 1t tells the
story. do not know that 1 have, at this time.
ANYTHING to add TO the facts as set forth in the
complaint
The complaint recites that or about June
"a, 1902 the Mercantile Trust Company accepted
the offer of Young to assign to it $l999o5OO OF
the preferred and S24.9SS500 of the common
.1lon-asseSsable stock of the United States Ship
nulding Company. and S16500Oo0 Of its first
mortgage five per cent, sinking fund, thirty-year
gold bonds (Series Al, secured by a first mort
gage the plants of the defendant company.
Your orator Ooung), upon information and
belief states that, IN the distribution and dis
position of the said securities. the defendant
has dfsregarded the rights of your orator, and
violated it's duties as trustee to your orator.
;snd his directions and wishes in respect TO the
same" continues the complaint That the de-
fendant refused and refuses to account for or
pay over 10 your orator the same securities or
the value thereof. the proceeds derived there
FROM or in any way to account Therefor TO your
GATOR. 10 pe1nit him to examine the BOOKS OF
the defendant containing the entries relating 10
said property, and refused and still refuses 10
give your orator proper faculties OF ascertain
ing the facts in relation thereto.
"And your orator further alleges that the de-
fendant has not, nor did it have at any time
sny right in or title to- or interest In any Of the
securities heretofore referred to except as trus-
tee or repository as aforesaid.
According to complaints. answers and cross
bills fled in previous actions, it appears that
Young and D. lie Roy Dresser were the prin-
Cipal promoters or the SnipDullOlIlS trust anu
that Yo1ng endesvored unsuccessfully float
the bonds and stock of the company In France
and also TO organize a syndicate of French capt.
faists which to underwrite a large block
Of the Shipbuilding company's stock Because
OF the refusal. it was alleged. of ]. Pierpont
Morgan & Co to indorse the proposed merger at
the psychological moment the French under
writing fell through
It was supposed that Young was working in
harmony with the reorganization committee to
straighten the tangled affairs OF the company
and put il, if possible. upon a solvent basis
]. ". Young. the complainant, is a son OF
Brigham Young, the Mormon prop5at. and
brings the action as citizen OF Uta...