This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1916 Excerpt: ...of credit was said to be a mortgage for $10,000,000 which the Bethlehem company made to the Colonial Trust Company upon its plant and property at the time of the purchase of Bethlehem by the United States Shipbuilding Company. As further security to Mr. Schwab for the $ 10,000,000 of bonds delivered to him as the ... Read More
This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1916 Excerpt: ...of credit was said to be a mortgage for $10,000,000 which the Bethlehem company made to the Colonial Trust Company upon its plant and property at the time of the purchase of Bethlehem by the United States Shipbuilding Company. As further security to Mr. Schwab for the $ 10,000,000 of bonds delivered to him as the purchase price of Bethlehem, the Bethlehem Steel Company executed to the Colonial Trust Company the mortgage above referred to to secure a bond in the like amount. Your Receiver is advised that the execution and delivery of such bond and mortgage by Bethlehem to secure Mr. Schwab for the purchase price of the sale of the stock of the Bethlehem was a fraud upon the creditors of said company, and was otherwise void because of the control of the directors by Mr. Schwab. In addition thereto, it is evident that the impairment of credit, if any, which Bethlehem complains of, was the result of its own deliberate, unwarranted, and illegal act. Your Receiver submits, therefore, that there was no justification for withholding from the United States Shipbuilding Company the entire earnings of the Bethlehem company, and charges that the inability of the Shipbuilding company to continue its business was due in large part to the failure of the Bethlehem company to relinquish its earnings. At this point your Receiver desires to call the attention of the Court to another matter somewhat small in comparison with the enormous and unlawful appropriation of stocks and bonds of the United States Shipbuilding Company above mentioned, but of some importance in showing the manner with which the Bethlehem company dealt with the United States Shipbuilding Company. At the time of the sale of the Bethlehem Steel Company to the United States Shipbuilding Company, a statement w... Read Less
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