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AMERICAN TRUSTS. ————-————-

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AMERICAN TRUSTS. ———— ————- Suit Against a Ship Building Company. ALLEGATIONS OF FRAUD AND INSOLVENCY. A suit was filed in the Federal Circuit Court at Trenton, New Jersey, yesterday against the United States Shipbuilding Company for an injunction against a continuance of business, and the appointment of a receiver, on the grounds of insolvency, fraud in organisation. and mismanagement. The complainants are first mortgage bondholders and owners of pre- ferred and common stock. Judge Kirkpatrick granted the order, which prevents the officers of the company from disposing of any assets and preferring any creditors. The bill of complaint charges that Mr. Lewis Nixon, who projected the combination, sold to the new company the Crescent Shipbuilding Company, in which he was interested, at an exaggerated price, and that the new company issued a large amount of securities, which were un- loaded on the public at exorbitant prices. It is also charged that of $16,000,000 bondl3 of the company about$9,000,000 were sold upon false representations. The bill further charges that it was part of the plan of Mr. Nixon to have Mr. Charles M. Schwab buy the Beth- lehem Steel Works and put it into the new company at an unconscionable profit. It is alleged that Mr. Schwab paid a sum not exceeding $3.000,000 for the Bethlehem Works above mortgages of about $9.000,000, and put the works into the shipbuilding company at about $40,000,000. A copy of the plan of re- organisation of the Sheldon committee is ..attached to the papers, and it is asserted that the shipbuilding company is now controlled by Mr. Schwab, and that the plan of re- organisation is solely in his interest, the purpose being to wipe out the first mortgage bondholders and enable Mr. Schwab to obtain the entire property under his mortgages. By this plan it is charged Mr. Schwab will receive back all he sold to the shipbuilding company, and get all its properties and assets as well.

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