Indianapolis Journal, Volume 53, Number 306, Indianapolis, Marion County, 2 November 1903 — Page 9

THE INDIANAPOLIS JOURNAL, MONDAY, NOVEMBER 2, 1003.

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EMMY LOU in a SCHOOL PLAY v. The Play's iKe ThlnjJ. T was the day of the exhibition. I At the close of the half yar the third reader class had suffered a change la teachers, the first having; been a substitute, whereas her 2' successor was a real teacher. And since the coming of Miss Carrie, the third reader class had lived, as It were, in the public eye, for oa Fridays books were put away and the attention given to recitations and company. Mlea Carrie talked la deep tones, which he said were chest tones, and described mysterious sweeps and circles with her hands when she talked. And these- she called gestures. Miss Carrie was an elocutionist and had even recited on the stage. She gave her class the benefit of her talent, and In teaching them said they must suit the action to the word. The action meant gestures, and gestures meant sweeps and circles. Emmy Lou had to learn a piece for Friday. It was poetry, but you called It a piece, and though Uncle Charlie had selected It for Emmy Lou, Miss Carrie did not seem to think much of it. ' Emmy Lou stood up. Miss Carrie was drilling her. and though she did her best to suit the action to the word, it seemed a complicated undertaking. The piece was called. "A Plain Direction." Emmy Lou came to the lines: Straight down the Crooked Lane And II around th Square. "Whatever difficulties her plump forefinger had had over the first three of these geometrical propositions. It triumphed at the end. for Emmy Lou paused. A square has four sides, and to suit a four-sided action to the word takes time. Miss Carrie, whose attention had wandered a little, here suddenly observing, stopped her, saying her gestures were stiff and meaningless. She said they looked like straight lines cut In the air. Emmy Lou. anxious to prove her efforts to be conscientious, explained that they were straight lines It was square. Miss Carrie drew herself up, and using- her coldest tones, told Emmy Lou not to be funny. "Funny 1" Emmy Lou felt that she did not understand. But this was a mere eplsodo between Fridays. One lived but to prepare for Fridays, and a Sunday dress was becoming a mere everyday affair, since one's best must be worn for Fridays. No other class had these recitations and the third reader was envied. Its members were pointed out and gazed upon, until one realized one was standing rn the garish light of fame. The other readers. It seemed, longed for fame and craved publicity, and so it came about that the school was to have an exhibition with Miss Carrie's genius to plan and engineer the whole. For general material Miss Carrie drew from the whole school, but the play was for her own class alone. And this was the day of the exhibition. Hattie and Sadie and Emmy Lou stood at the gate of the school. They had spent the morning in rehearsing. At noon they had been sent home with instructions to return at half -past 2. The exhibition would begin at 3. "Of course,- Miss Carrie had said, you will not fall to be on time." And Miss Carrie had used her deepest tones. Ilattle and Sadie and Emmy Lou had wondered how she could ever dream of such, a thing. It was not 1 o'clock, and the three stood at the gate, the first to return. They were in the same piece. It was "The Flay." In a play one did more than suit the action to the word; one dressed to suit the part. In the play Ilattle and Sadie and Emmy Lou found themselves the orphaned children of & soldier who had failed to return from "the war. it was a very sad piece. Sadie had to weep, and more than once Emmy Lou had found tears In her own eyes, watching her. . Miss Carrie 'said Sadie showed histrionic talent. Emmy Lou asked Hattie about It, who said tt meant tears, and Emmy Lou remembered then how tears came naturally to Sadie. When Aunt Cordelia heard they must dress to suit the part she came to see Miss Carrie, and so did the mamma of Sadie and the mamma of Hattie. "Dress them In a kind of mild mourning," Miss Carrie explained. "not too deep, or It will Nem too real, and, as three little sisters, suppose we dress tha alike." And now Hattie and Sadie and Emmy Lou stood at the gate ready for the play. Stiffly Immaculate white dresses, with beltings of black sashes, flared jauntily out above spotless white stockings and sober little black slippers, while black-bound Legborn hats shaded three anxious little" countenances. By the exact center, each held a little handkerchief, black bordered. . "It seems almost wicked." Aunt Cordelia had ventured at this point; "It seems like tempting Providence." But Sadie's mamma did not see it so. Sadie's mamma had provided the handkerchiefs. Tears were. Sadie's feature in the play. Ilattle and Sadie and Emmy Lou wore each an anxious seriousness of countenance, but it was a variant seriousness. HatUe's tense expression breathed a determination which might have been inter- . rreted do or die; to Hattie was a battling foe to be overcome and trodden ber.eath a victorious heel; Ilattle was an infidel 8t. George, always on the look for the dragon, and to-day the exhibition was the dragon. Sadie's seriousness was a complacent realization of large responsibility. Her weepIn was a feature. Sadie remembered she had 'histrionic talent. Emmy Lou's anxiety was because there loomed ahead the awful moment of mountü3 the platform. It was terrible on mere Fridays to mount the platform, and, after

CopyrlgHt by McClure, FKillips CD. Co.

WW Chapter V !s repeated for benefit of readers who do not rcceira The

vain swallowing to overcome a labial dryness and a lingual taste of copper, try to suit the action to the word; but to mount the platform for the play Emmy Lou was trying not to look that far ahead. But as the hour approached, the solemn Importance of the occasion was stealing brainward, and she even began to feel glad she was a part of the exhibition, for to have been left out would have been worse even than the moment of mounting the platform. "My grown-up brother's coming," said Hattie. "an' my mamma an gran'ma an the rest." "My Aunt Ccrdelia has invited the visiting lady next door," said Emmy Lou. But it was Sadie's hour. "Our minister's coming," said Sadie. "Oh. Sadie," said Hattie, and while there was despair In her voice one knew that in Hattle's heart there was exultation at the very awfulness of it. "Oh. Sadie," said Emmy Lou. and there was no exultation in the tones of Emmy Lou's despair. Not that Emmy Lou had much to do hers was mostly the suiting of the action to some other's word. She was chosen largely because of Hattie and Sadie, who had wanted her. And then, too, Emmy Lou's Uncle Charlie was the owner of a newspaper. The exhibition might get into Its columns; not that Miss Carrie cared tor this herself she was thinking of the good it might do the school. Emmy Lou's part was to weep when Sadie wept, and to point a chubby forefinger skyward when Ilattle mentioned the departure for earth of the soldier parent, and to lower that forefinger footward at Sadie's tearful allusion to an untimely grave. Emmy Lou had but one utterance, and It was brief. Emmy Lou was to advance one foot, stretch forth a hnd and say, In the character of orphan for whom no asylum was offered, "We know not where we go." That very morning, at gray of dawn, Emmy Lou had crept from her own bed Into Aunt Cordelia's bed to say it over, for it weighed heavily on her mind, "We know not where we go." As Emmy Lou said it the momentous import of the confession fell with explosive relief on the go, as If the relief were great to have reached that point It seemed to Aunt Ccrdelia, however, that the where was the problem In the matter. Aunt Louise called In from the next room. Aunt Louise had large Ideas. The stress, she said, should be laid equally on know not, where and go. Since then, all day. Emmy Lou had been saying it at intervals of half minutes for fear she might forget Meanwhile, It yet lacking a moment or so t) 2 o'clock, the orphaned heroines continued to linger at the gate, awaiting the hour. "Listen," said Hattie; "I hear music." There was a church across the street The drug store adjoined It It was a large church, with high steps and a pillared portico, and Its doors were open. "It's a band, and marching," said Hattie. The orphaned children hurried to the curb. A procession was turning the corner and coming toward them. Oa either sidewalk crowds of men and boys accompanied It. "It's a funeral" said Sadie, as If she Intuitively divined the mournful. Hattie turned with a face of conviction. "I know. It's that big general's funeral;

Sunday Journal.

they're bringing him here to bury him with the soldiers." "We'll never see a thing for the crowd," despaired Sadie. Emmy Lou was gazing. "They've got plumes In their hats," she said. "Let's go over on the church steps and see It go by," said Ilattle, "It's early." The orphaned children hurried across the street. They climbed the steps. At the top they turned. There were plumes and more, there were flags and swords, and a band led.

THE AOTLO? THECnOOL

But at the church with unexpected abruptness the band halted, turned, it fell apart, and the procession came through; it came right on through and up the steps, a Una of uniforms and swords on either side from curb to pillar, aud halted. Aghast, between two glittering files, the orphaned children shrank into the shadow behind a pillar, while upstreamed from the carriages below an unending line bareheaded men, and ladies bearing flowers. Behind, below, about closing in on every side, crowded people, a sea of people. . The orphaned children found themselves swept from their hiding by the crowd and unwillingly Jostled forward into prominence. A frowning man with a sword In his hand seemed to be threatening everybody; his face was red and his voice was big, and he glittered with many buttons. AU at once he caught sight of the orphaned children and threatened them vehemently. "Here," said the frowning man, "right in here," and he placed them in line. The orphaned children were appalled, and even in the face of the man cried out in protest But the man of the swörd did not hear, for the reason that he did not listen. Instead he was addressing a largo and stout lady immediately behind them. "Separated from the family in the confusion, the grandchildren evidently just see them in. please." And suddenly the orphaned children found themselves a part of the procession as grand-children. The nature of a procession is to proceed. And the grandchildren proceeded with it They could not help themselves. There was no time for protest, for, pushed by the crowd which closed and swayed above their heads and piloted by the stout lady close behind, they were swept Into the church and up the aisle and when they came again to themselves were In the inner corner of a pew near the front Tha church was decked with flags. So was the third reader room. It was hung with flags for the exhibition. ilattle in the corner nudged Sadie. Sadie urged Emmy Lou, who, next to the stout lady, touched her timidly. "We have got to get out," said Emmy Lou, "we've got to say our parts." "Mot now," said the lady, reassuringly, "the programme is at the cemetery." "S-h-h." said that person, engaged with the spectacle and the crowd; "Sh-h-1 'Abashed. Emmy Lou sat sh-h-ed. Hattie arose. It was terrible to rise In church and at a funeral, and the church was filled, the aisles were crowded, but Hattie arose. Ilattle was a St. George and a dragon stood between her and the exhibition. She pushed by Sadie and past Emmy Lou. Hattie was as slim as she was strenuous, or perhaps she waa slim because she was strenuous, but not even so slim a little girl as Hattie could push by the stout lady, for she- filled tha space.

At Hattle's touch she turned. Although she looked good natured, the size and ponderance of the lady were Intimidating. She stared at Hattie; people were looking; It was in church; Hattle's face was red. "You can't get to the family," said the lady, "you couldn't move in the crowd. Besides, I promised to see to you. Now be quiet." she added crossly, when Hattie would have spoken. She turned away. Hattie crept back vanquished by this dragon. "So suitably dressed," the stout lady was saying to a lady beyond; "grandchildren, you know." "She says they are grandchildren," echoed the whispers around. "Even their little handkerchiefs have black borders," somebody beyond replied. Emmy Lou wondered If she was in some dreadful dream. "Was she a grandchild or was she an orphan? Her head swam. The service began and there fell on the unwilling grandchildren the submission of awe. The stout lady cried, she also punched Emmy Lou with her elbow whenever that little person moved, but finally she found courage to turn her head so she could see Sadie. Sadie was weeping Into her black-bordered handkerchief, nor were they tears of histrionic talent. They were real tears. People all about were looking at her sympathetically. Such grief in a grandchild was very moving. It may have been minutes, it seemed to Emmy Lou hours, before there came a general uprising. Hattie stood up. So did Sadie and Emmy Lou. Their skirts no longer stood out Jauntily; they were quite crushed and subdued. There was a wild, hunted look In Hattle's eyes. "Watch the chance," she whispered, "and run." But it did not come. As the pews emptied the stout lady passed Emmy Lou on, ad-

dressing some one beyond. "Hold to this one," she said, "and I'll take the other two, or they'll get tramped In the crowd." Emmy Lou felt herself grasped; she could not see up to find by whom. The crowd in the aisle had closed above her head, but she heard the stout lady behind saying: "Did you ever seen such an ill-mannered child?" and Emmy Lou judged that Hattie was struggling against fate. 1 Slowly the crowd moved, and, being a part of it, however unwillingly, Emmy Lou moved, too, out of the church and down the steps. Then came the crashing of the band and the roll of carriages, and she found herself in the front row on the curb. The man with the brandishing sword was threatening violently. "One more carriage is here for the family," called the man with the sword. His face was red and his voice was hoarse. His glance in search for the family suddenly fell on Emmy Lou. She felt it fall. The problem solved itself for the man with the sword and his brow cleared. "Grandchildren next," roared the threatening man. "Grandchildren." echoed the crowd. Hattie and Sadie were pushed forward from somewhere, Hattie lifting her voice. But what was the cry of Hattie before the brazen utterance of the band? Sadie was weeping wildly. Emmy Lou, with the courage of despair, cried out in the grasp of the threatening man, but the roan, lifting her into the carriage, was speaking himself, and to the driver. "Keep, an eye on them separated from the family," he was explaining, and a moment later Hattie and Sadie were lifted after Emmy Lou Into the carriage, and as the door banged their carriage moved with the rest up the street. "Now," said Hattie, and Hattie sprang to the farther door. It would not open. Things never will in dreadful dreams. Through the carriage windows the school with its arched doorways and windows gazed frownlugly, reproachfully. A gentleman entered the gate aud went into the doorway. "It's our minister," said Sadie, weeping afresh. Hattie beat upon the window and called to the driver, but no mortal car could have heard above that band. "An my grown-up brother, an gran'ma an' the rest" said Ilattle. And Hattie wept. "And the visiting lady next door," said Emmy Lou. She did not mean to weep, tears did not come readily to Emmy You, but just then her eyes fell upon the handkerchief still held by Its exact center in her hand. What would the exhibition do without them? Then Emmy Lou wept. Late that afternoon a carriage stopped at a corner upon which a school building stood. Since his charges were but infantile

affairs, the colored gentleman on the box thought to expedite matters and drop them at the corners nearest their homes. Descending, the colored gentleman flung open the door, and three little girls crept forth, 'three crushed little girls, three limp little girls, three little girls in a mild kind of mourning. They came forth timidly. They looked around. They hoped they might reach their homes unobserved. There was a crowd up the street A gathering of people many people. It seemed to be at Emmy Lou's gate. Hattie and Sadie lived farther on. "It must be a fire," said Hattie. But it wasn't It was the exhibition, the principal and Miss Carrie, the teachers and pupils, the mammas and aunties and Uncle Charlie. "An gran'ma" said Hattie, "And the visiting lady" said Emmy Lou. "And our minister," said Sadie. The gathering of many people caught sight of them presently and came to meet them, three little girls in mild mourning. The little girls moved slowly, but the crowd moved rapidly. The gentlemen laughed. Uncle Charlie and the minister and the papa or two, laughed when they heard, and laughed again, and went on laughing, they leaned against the fence. But the ladies could see nothing funny, the mammas, nor Aunt Cordelia. That mild mourning had been the result of anxious planning and consultation. Neither could Miss Carrie. She said they had failed her. She said it in her deepest tones and used gestures. Sadie wept, for the sight of Miss Carrie recalled afresh the tears she should have shed with histrionic talent The parents and guardians led them home. Emmy Lou was tired. She was used to a. quiet life and never before had been in the public eye. At supper she nodded and mild mourning and all, suddenly Emmy Lou collapsed and fell asleep, her head against her chair. Uncle Charlie woke her. He stood her up on the chair and held out his arms. Uncle Charlie meant to carry her as if she were a baby thing again up to bed. "Come," said Uncle Charlie. Emmy Lou stood dazed and flushed, ehe was not yet quite awake. Uncle Charlie had caught snatches of school vernacular. "Come," said he, "suit the action to the word." Emmy Lou woke suddenly, the words smiting her ears with ominous import She thought the hour had come, It was the exhibition. She stood stiffly, she advanced a cautious foot, her chubby hand described a careful

half circle. Emmy Lou spoke "We know not where we go," said Emmy Lou. "No more we do," said Uncle Charlie. To be Continued To-morrow. FRAUDS OF FINANCE. (CONCLUDED FROM FIRST PAGE.) stock of the Union iron works of San Francisco, Jienry Scott and Irving iL Scott were to agree to enter into a contract with the Shipbuilding Company not to compete with It in its business and not to employ their capital or to personally engage in any shipyards or shipbuilding business for the period of ten years and the company was to contract to engage G. W. Dickie. R. Forsythe and John T. Scott as officers or managers for five years, at annual salaries of $10,000; W. H. Gould as mining engineer for five years at $10,000 per year; Lawrence I. Scott as assisting constructor at $5,000 per annum for five years; W. P. Scott as assistant to the president of the Shipbuilding Company for five years at an annual salary of $5,000; H. A. Scott, as assistant to the engineer in chief for five years at 12,000 per annum, and Edward G. Simm as assistant to the chief draughtsman for three years at $3.000 per year. OTHER TERMS OF SALE. The offer of the Harlan & Hollingsworth Company and the Eastern Shipbuilding Company, wa conditional on the acceptance by the new cbmpany of certain guarantees for completion of contracts and, in the case of the Eastern Company, that the new company engage Charles H. Hanscom to continue in the management and direction of the organization and plant of the Eastern Shipbuilding Company, at an annual salary of $15,000 until completion and delivery of two steamships being constructed for James J. Hill and Maunsell Van Renssellear as manager of the financial department for five years at $6,000 per annum. The offer to the Crescent Shipyard Company was on the condition that all obligations or indemnity contracts in connection with government or other contracts should bo assured and that Lewis Nixon should contract with the company to give to its business his time and attention for five years at a salary to be agreed on, and also enter a contract not to compete directly or-Indirectly with It in Its business. Purchasing the Samuel L. Moore & Sons Company, the company was to engage Frederick Woodburn for five years at an annual salary of $2,500. In purchasing the Bath iron works and the Hyde Windlass Company, of Maine, all contracts of indemnity, in connection with contracts with government were to be assumed and the present stockholders of the Bath iron works reserved that portion of profit earned on the monitor "Nevada," and the cruiser "Cleveland," and still unpaid on account of reservations by the government. Edward A. Hyde, John S. Hyde and J. R. Andrews were to be employed for five years at $15,OOO each per annum. Tha entire capital stock of all these companies was to be turned over, and Mr. Young agreed that they should be "free and clear of all indebtedness except current indebtedness Incurred In the usual course of business," except in the cne of the Harlan & Holllngsworth Company, where $156,000 in mortgages and further disbursement of $10,0ü0,0uü was to be paid out of surplus earnings of this company. The "current Indebtedness" assumed under the agreement, it later developed, was over $2.000,000. THE BETHLEHEM SALE. In the name of the Bethlehem Company, the offer was made on condition that the stock of the company was to be deposited with the New York Security and Trust Company in trust A trust deed was to be issued on this stock which should be a first lien on the stock, and a second Hen on the property and plants of tha other companies, in this latter case a mortgage on them to secure a bond issue of $16,000,000 having priority. Holders of the Bethlehem bonds were to have the right to vote at stockholders' meetings on an equal footing with the stockholders of the Shipbuilding Company. On the Bethlehem property $10,000,000 worth of bonds were to be Issued and a mortgage and a single bond to be executed to the New York Security and Trust Company to secure these, and on agreement executed between the Bethlehem Steel Company and the Shipbuilding Company in which the latter company should undertake to guarantee so long as any of said issue of JlO.ouO.üuO bonds are outstanding, that the Bethlehem Steel Company should pay dividends on its capital stock at the rate of $3 per share per year, aggregating an annual dividend contribution of $5,000,000, and for that purpose the company would supply the Bethlehem Steel Company with business as means of earning to enable it to pay this dividend should such become necessary, or advance such money to make the dividend payment. Such advances might be credited on any work which the Bethlehem Company might thereafter perform for the company. So long as any of said issue of $10.0uO,(MJ bonds remained outstanding the Bethlehem Steel Company should be protected in keeping on hand and maintaining cash or cash assets of not less than $4,000,000 working capital, and the company should remain an independent and distinct corporation and not be merged in or consolidated with the Shipbuilding Company or any other corporation, unless such merger or consolidation should be consented to by the holders of not loss than 73 per cent of the outstanding bonds. By this agreement the receiver contends, the United States Shipbuilding Company was played entirely in the control of the Bethlehem Steel Company and its principal stockholder. Charles M. Schwab. Mr. Young was to turn over to the Shipbuilding Company, in addition

to the capital stock of these plant.. $1.500.000 for working capital and $1..7K).(m) in bonds of the United States Shipbuilding Company, to be held as treasury assets or disposed of for working capital or other purposes of the company, and would accept In full consideration $13,3jS.500 in preferred stock and $24.338.500 of the common stock of the company, Jlö.Ooü.Ouö par value of first mortgage 5 per cent sinking fund thirty-year gold bonds, secured by a mortgage upon all th property and plants of the companies outside of the Bethlehem company, and $10,000,000 in 5 per cent, twenty-year gold bonds secured by a mortgage on the Bethlehem Steel Company. THE "DUMMIES" ACCEPT. On the receipt of this offer, says the receiver, the directors above named, holding no stock whatever in the company, but at most a mere subscrlptive right by assignment, to one share each, adopted a resolution which in effect accepted the offer as made and increased the capital stock from $3,000, to $15,000,000, $20,000,000 preferred and $23.000,000 common; executed the $10.000.000 mortgage on the Bethlehem plant and the $16,000,000 mortgage on the other plants as specified, and delivered the corporation bonds and all the stock except fifteen shares of common and fifteen . of preferred to Young. This action was ratified by the stockholders on July 31, 1902, and between Aug. 5 and 12 the transaction was consummated by the delivery of the capital stock and plants of the constituent companies. Leases, later, were executed conveying the plants to the companies for purposes of operation, the profits to be turned into the oemidnb etaoin shrldu cmfwyp etaoinoin combined treasury. The resolution of the board of directors accepting Young's offer was stated by the board In its minutes to be based on reports from W. T. Simpson and Riddell & Common, accountants, on the condition of the business of several companies mentioned in said offer, excepting the Bethlehem Steel Company. This report is alleged to have certified, among other things, that the contracts of the constituent companies for construction then in hand amounted to over $36,000,000, that the estimated net profits thereon had been calculated at over result in an annual average profit of $2.225,000. With reference to the Bethlehem Steel Company the minutes of the board recite that Jones, Caesar & Co., chartered accountants, had been investigating the affairs of the Bethlehem Steel Company and had made a report that the company was earning $1,800,000 per year; that it had a working capital of over $4.000.000 and that it had contracts in hand sufficient for its full running capacity for three years. FALSIFIED FIGURES. "In reliance on these alleged reports and without knowledge of or investigation Into the merits of the properties," Mr. Smith says, "the resolution In question was adopted. A comparison of the figures alleged to have been relied on by the board of directors in accepting the offer with the true figures ascertained from an examination of the subsidiary companies subsequent to the purchase of said plants, disclosed so great a variance as to impel the belief that the figures contained in the minutes were willfully misstated. It is extremely doubtful whether any report was submitted by any accountants made as of that time, as the minutes recite." "A let r purporting to be signed by Simpson and Riddell and Commons, dated Jan. 24," says Mr. Smith, "would se-n to serve as a basis to a certain extent for the allegation in the minutes, but the examination of these accountants must have been of the most superficial kind. "The letter in question makes such exaggerated representations with reference to the profits, present and prospective," he declares, "as to make it absolutely worthless as a guide in ascertaining the real condition of the plants. It is entirely refuted by their later reports." In these later reports, he states, the $5,OOO.oOO of profits dwindle to about $l,OO0,0o0, and the estimated average annual profits of the Bethlehem Company to not more than $1,400,000. Actual profits were much less, however, the first year's earnings of the constituent companies, exclusive of the Bethlehem, not exceeding $S33,458. "The real reason why the earnings fell below the anticipated profits," the receiver says, "was because previous alleged earnings had been figured on a percentage of completion of contracts, which percentage In many instances was erroneous." NO WORKING CAPITAL. "It appears," he continues, "that with the exception of the United Iron works, the subsidiary companies, taken together, had absolutely no working capital, but on the contrary their liabilities exceeded their resources in the sum of. 5234,713.33. The following was the condition of these com

panies at the time of their purchase: Deficits. Bath iron works $3,518.74 Crescent Shipyard Company....... 403,192.23 Harlan & Hollingsworth Company 73.S13.4i S. T. Moore & Sons Company 5,0.27 Total $465,563.73 Surplus. Eastern Shipbuilding Company.... $1,391.24 Hyde Windlass Company isy,453.06 Total $190,814.40 Net deficit being excess of liabilities over assets, $234,719.33. The Union iron works. It was found, had a working capital of $2,123,150. "As the principal part of the alleged working capital above mentioned was confined to the Union works," he concludes, "it will appear that so far as the remaining companies are concerned, when taken over by the United States Shipbuilding Company they not only had no working capital, taken collectively, but were in immediate need of financial assistance. From the foregoir;? facts it appears to have been the Intention of those responsible for the statements and figures alleged to have been relied on to mislead and deceive the Investing public and the present and future creditors of the company." FALSE STATEMENTS. Receiver Smith then quotes from the prospectus issued to the public to induce subscriptions for bonds, and concludes that a' comparison of this prospectus with the facts discloses false and misleading statements in the following regards: "1. At the date of this prospectus the United States Shipbuilding Company had not been incorporated. "1 Its capital stock was never twenty millions; it originally was $3,000, -which amount was subsequently Increased to $15,000,000. "3. Six of the ten persons mentioned as directors in the prospectus were not directors of the company and have never been. "4. The amount of contracts on hand did not exceed $36,000,000, but of this amount a profit was available only on the uncompleted portion of the contracts, which profit will not exceed $1.078,261.42, and will take three years to earn. "5. These companies did not have a working capital of more than $5,000,000; the figures of the accountants show only a working capital of $3,278,7tS.48. This working capital, however, was almost obliterated by subsequent adjustment "6. The statement that the profits on contract work In hand would be $5,000,000 was undeniably false. If it is claimed that the profit was estimated on the entire amount of $36,000,000 worth of contracts (which was not true), the utmost profit that could be looked for, according to figures of the accountants, was $3,6u0,ono. A liberal estimate would have placed the earnings at only a trifle over $2,000,oo0." The report then gives the net book value of the constituent companies on July 31, 1902, according to accountants statements from the books of the companies at 112,411,516, for which the directors of the United States Shipbuilding Company parted with $70,977,000 In stock and bonds. GIFT OF MILLIONS. "Viewing the acquisition of the properties from the standpoint of the surplus and plant values, as disclosed by the books of the company," the report reads, "the directors appear to have made a gift of upwards of $55,000,000 worth of stock and bonds of the United States Shipbuilding Company intrusted to their care. "If book values are to be disregarded and the real value of the plants computed on earnings, the statement In the minutes that the total earning capacity was 11,023.000," he adds, "Is false." and he contrasts with it the reported earnings of the companies for the year ended July 31, 1303, S1.6C2.530 for the Bethlehem company and $S33.453 for the other companies, a total of $2.495.9S9. Of this the shipbuilding company benefited by only $310.754, only $60,734 coming from the companies other than the Bethlehem. The latter turned over $250.000 to meet interest on bonds, retaining $t&3,370 for "plant betterment" "It may be said here," Mr. Smith write, "that the Bethlehem company deliberately used up its earnings in making enormous purchases of material for its own benefit, and in extensions, improvements and repairs, in order, apparently, to keep Its earnings from the United States Shipbuilding Company." - Alludi&s ta the million dollars in the

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Miss Nellie Holmes, treasurer of the Young Woman's Temperance Association of Buffalo, N.Y., strongly advises all suffering women to rely, as she (fid, upon Lydia E. Pinkham's Yege. table Compound. Dear Mrs. Pixkham : Your medicine is indeed an ideal woman's medicine, and by far the best I know to restore lost health and strength. I suffered misery for several years, being' troubled "with xnenorrhagia. . My back ached, I had bearing-down pains and frequent headaches. I would often wake from restful sleep, and in Buch pain that I suffered for hours before I could po to sleep again. I dreaded the long nights as mnen as the weary days. I consulted two different physicians, hoping to get relief but,' finding thai their medicine did not seem to cure me. I tried your Vegotable Compound on the recommendation of a friend from the East who was visiting me. I am glad that I followed her advice, for every ache and pain is gone, and not only this, but my general health is much improved. I have a fine appetite and have gained In flesh. My earnest advice to suffering women is to put aside all other medicines and to take Lj-dia E. Pinkham's Vegetable Compound." Miss Neixib Holmes, 540 No. Division St., Buffalo, K.YS 5000 forfeit If original ofabovtlttluprt Ving girulitirit cannot t9 f.-roducri1. stock and bonds, "deliberately given awar Älr. Smith says: "Who participated in this wholesale plunder? The testimony now being taken in the proceeding's will doubtless disclose the names of all the participant!. Certain it is that much of this vast amount was taken by persons and corporations who parted with little or no consideration In exchange therefor. Blocks of the itclc went to the vendors of the constituent plants and to the purchasers of the bonds, as bonus, absolutely without benefit to tho company; J20.0u0.000 of it admittedly went to Charles M. Schwab In addition to the agreed price for Bethlehem. Some of It went to the promoters of this artistic swindle; and when all had been provided for, what was left of the bonds, amounting to $1,500.000. was handed back to the company ostensibly to supply it with "working capital " LIABLE TO SUIT. The receiver declares he is advised that the vendors and promoters and their associates in the transfer and conveyance of the various plants to the United States Shipbuilding Company, by the acceptance of $44,977.000 of the capital stock of the shipbuilding company, without paying value therefor, became liable thereon to said corporation and that the shipbuilding company can recover the amount of this Indebtedness from the holders of the stock. In regard to the culpability of the "dummy" directors of the United States Shipbuilding Company, In parting with many million dollars in Its stocks and bonds, tho receiver says they should be held accountable for their unlawful act, but that they are not alone responsible, being clerka of the Corporation Trust Company, 'mere figure-heads placed In the position in order that schemes of others might bo carried into effect." The receiver charges that the properties of the various constituent companies were sold to the United States Shipbuilding Company for an amount which the vendors of such properties knew to be far In excels of their value and that the plan to combine such properties was conceived and consummated by certain promoters with full knowledge of its injustice to the United States Shipbuilding Company, tho company being absolutely without intelligent representation or protection In the the matter. Discussing the cause of the failure tha report says: "One of such causes was the fact that the directors parted with bonds to an amount on which it was Impossible to meet the interest. The failure, however, was precipitated. If not directly brought about, by the fact that in the Bethlehem transaction the United . States Shipbuilding Company officers had to deal with people who, while thoroughly understanding the intricacies of higher finance seemed to have overlooked the requirements of common fairness SCHWAB'S BONUS. While the rgreed price of Bethlehem was $3,000,000, to be paid for by $10.000,000 in bonds at SO, Charles 31. Schwab Its owner, the report says, secured from the directors of tho company an additional $20,00,000 in stock, and an agreement giving his bonds voting power, thereby gaining control of the company whose total stock was $15,000,000. In this deal, tha receiver cays, air. Schwab parted with nothing, tha capital stock of the Bethlehem company being placed beyond tha control of tha shipbuilding company by the trust agreement. If interests friendly to the shipbuilding company had controlled this stock It would have been able to reach the Bethlehem earnings, but the provision for the selection of Bethlehem directors, tha trustees, named by Mr. Schwab, tppolntiag three directors; and the shipbuilding company, controlled by Schwab, designating the other four, placed them entirely !.i his hands and the United States Shipbuilding Company entirely at his mercy. The further provision of the agreement guaranteeing a 6 per cent, dividend on the Bethlehem stock from the receipts of the entire company, impels Mr. Smith to ask, "Was ever such another agreement, apparently harmless, yet so ruinous, conceived by the mind cr man?" "la April. 1003." th receiver says. la spite of the fact that the shipbuilding company would default In Interest on bonds due July 1 unless retrenchment was made and assistance was received from Bethlehem, the executive committee of tha shipbuilding company approved a recommendation for betterments of $2.802,000 In Bethlehem, and the directors approved this action, over the protest of President Nixon. The action of the Bethlehem Company la withholding earnings of upwards of J2.000,000 annually was, says Receiver Smith, "with the apparent purpose of bringing about the destruction of the shipbuilding company." That the execution of the tlO.OOO.Ona mortgage and bond by the Bethlehem company to secure Mr. Schwab at the time of the consolidation is a fraud on the creditors of the Bethlehem company, and otherwise void because of Schwab s control of the directors, the receiver says he is advtsHl The report concludes with a discussion of the conditions of the constituent companies under the receivership, showing that tha receiver had possession of ail but the Bath and Union plants, but claiming that as long as the prcjnt board of directors cf the Bethlehem company is retained no benefit will accrue to the receivership from this company. The receiver U convinced that the present interests In control are wholly hostile to the. shipbuilding company, are endeavoring to circumvent lejral proceedings and that a serrate receivership is uecessary. lie also deems It unwls to continue the operation of the Crescent shipyards, and advises its sale. Th sama recommendation as to the Harlan & Hollingsworth plant is made. rindlay Attorney Falls. TOLEDO. O., Nov. 1. Hon. B. T. Dunn, a prominent attorney of Find lay, O.. an$ formerly vice commander of the G. A. It., Department of Ohio, has riled a petition in voluntary bankruptcy, lie gives his liabilities as $76.030. and afaets $4tfX Mr. Dunn's failure Is due to depreciation of Findlay real estate, after the gas boom la that city some years ago.

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