New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-06-16
MET. TRUST SUED TO
RECOVER STEEL PLANT
Promoter of Western Steel Cor.
poration Charges Conspiracy
to Bankrupt His Concern.
BLAMES U. S. CORPORATION
Says It Found Competition Dis
tasteful-Company with $751;
$4,000 Assets Taken Over
for $4,000.
fBy Tel graph to The Tribune. !

BY Tel graph To The Tribune
Seattle. June 15.-James A. Moore. who
promoted the Western Steel Corporation
has filed suit against the Metropolitan
Trust Company, OF New York. and others,
to recover the plant of the Western Steel
Corporation and all its extensive ore and
timber holdings and 81 100000 damages. He
charges the defendants with conspiring to
bankrupt him and his company. at the
direction of the United States Steel Cor
poration. which found the competition OF
the Western Steel Corporation In Puget
Sound distasteful.
Tie whole story OF the alleged conspiracy
and how the Metropolitan Trust Company
proceeded TO take over the Western steer
Corporation for $4,000. said to be the
amount due the trust company for money
Il had lent to Moore. Is told In the com
plant. which Scott Calhoun. former cor
poration counsel and attorney for the port
OF Seattle. has filed in the United States
District Court here on Moore's behalf.
The Metropolitan Trust Company. the
Western Steel Corporation, Harry Bevan'
of Irondale. Wash. where the Western
Steel Corporation has it's plant; the Port
Townsend Pile Driving Company. of Port
Townsend Wash. NJ. Barde. j. n. Barde
and l.. r. Barde, of Portland, Ore. and
John Doe OF Tacoma. are named as de-
PENDANTS.
Judge Lester Still appointed r. McClel-
land. OF Port Townsend, temporary re-
ceiver yesterday. without notice, of all the
properties which the Metropolitan TRUST
Company acquired when the referee IN
bankruptcy sold the assets OF the western
Steel Corporation on March 10. Mr.. Nc
CIelland will take possession Immediately.
Haley Fiske a director OF the Metropoi-
tan Trust Company. said last night at his
home in Bernardsville. n. j.. that the con-
spiracy charge against the trust company
by James A. Moore. ex-president or the
Western steel Company. possessed not the
remotest foundation In fact. The United
states Steel Corporation had not the faint
est connection with the trust company
action. he declared.
"It was just plain, commercial transac-
ton" he said Moore and the western
Steel Company owed us money. We sued
them for payment and they went into BANK
ruptcv. The court ordered the steel COM
many sold and we bought II in
Neither Mr. Fiske nor the other directors
and officers OF the trust company had re-
ceiyed formal notice OF the filing OF Moore
suit.
Samuel Untermyer appeared before the
~ RpDrp-
sentatives in Washington. January 20, TO
urge the House 10 undertake lts money
trust" inquiry. He produced at the time
letter written to him by James A. Moore
I'm which that promoter told briehy MS YER
sion OF the circumstances leading up to the
receiversh ip OF the Western Steel Com
pany.
The story was to the effect that the stock
holders OF the Western Steel Company had
authorized a t2O0O0co bond issue. that
Moore had sought to finance II In this city,
negotiating with the Metropolitan Trust
Company. but In vain because u might he
considered an unfriendly act by certain
interests in New York" Unable to get
financial support IN Pittsburgh or Boston
Moore went to France, he said, and re-
turned with assurances OF support only 10
be told that he could get his money In New
York. He declined. therefore. to give the
French fnanclers the sixty days they asked
in which to examine the property. IL was
then. according to his letter that the Met
ropolitan Trust Company took occasion to
call It's loan.
81 don't vouch for the accuracy OF these
statements" said Samuel Untermyer at the
time. but they tell story which is moth
ing unusual | am only surprised that the
hand of the corporation did not reach out
into France to block the deal
Mr. Untermyer did not care yesterday 10
add IN his remarks made before the House
Committee on Rules
The Western Steel Corporation was In
corporated In Washington october >. 1909,
with A capital stock of 10000 0o-sl5, .co
common stock and $4,000 per cent non
cumulative preferred stock. all OF the par
value OF 800 IL issued bonds to the amount
Of 100000. first mortgage gold 6s. dated
October I, 1910, and due October !. 1880
The company owned. according TO
"Moody's Manual" practically the entire
81. 90 900 capital stock Of tho Western Coal
and Iron Company, Limited, OF CANADA.
Its properties included thirty mining claims
q. 1884 acresD at Quatsino Sound. Vancouver
showing 100000 tons of ore; tracts at
Barclay Sound. b. c.. showing $4,000 tons
Of magnetic iron ore: ten mining claims
600 acres) I'm Lyon County, New, six miles
north OF the Southern Pacific Railroad,
showing 100000 tons of brown hematlte
ore: 2O350 acres OF coal land on Graham
Island, h. c.. estimated to contain &O,cOo,WO
tons OF coal, and 1900 acres of coal land at
Ashford. Pierce County, Wash. estimated
TO contain 100000 tons Of coal; limestone
property in. Skagit County. Wash. and
dalomite property in Stevens County.
Wash. and approximately bJ0,00.eO feet
OF timber on Graham Island. The company
maintained plant containing blast fur
naces, open hearth furnaces. rolling mills.
etc, at Irondale. Wash, thirty-eight miles
north OF Seattle It's balance sheet dated
November I, 1910. showed assets valued at
$37. 5000
Moore was president. Like him, the other
officers and directors, with the exception
OF two from Massachusetts,, all lived on the