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SEEK SECOND RECEIVER. PLAN TO STOP INQUIRY. New Application in Shipbuilding Case Delays Hearing. Trenton, N. J., Nov. 18.-Under an order filed with the clerk of the United States Circuit Court here to-night, the United States Shipbuilding Company is required to show cause before Judge Kirkpatrick. in Newark, next Tuesday, why a receiver should not be appointed at the suit of the Mercantile Trust Company. of New-York. as trustee. The trust company holds a mortgage on the shipbuilding company's property for $16,000,000. which it charges has been declared void by the present receiver, James Smith, jr., as having been issued without consideration. The petition denies the truth of this claim without going into the details of the transactions leading up to the giving of the mortgage. It does say. however, that on July last there was a default in interest on bonds amounting to $400,000. and a further default of $200,000 in payments due the sinking fund created for the retirement of the bonds. The petition sets forth that by the terms of the trust deed the complainant's right to foreclose has become absolute, despite a provision in the mortgage for a continuance of the period of default His contention is based on the fact that the solvency of the corporation has already been brought in question by the appointment of a receiver in the person of Mr. Smith, the claim being made that the mortgages represented by the trust company are entitled to have their interest protected by the appointment of another receiver in the foreclosure proceedings. The trust company charges that the bonds held by them constitute a lien upon the property of the company, and that in consequence the receiver which they ask to have named will have a right to take possession of all the property now being administered by the receiver, Mr. Smith. From the bare order and petition. it is not apparent to what extent the new application may be antagonistic to the interests represented by Mr. Smith nor does it appear with certainty that the request for a second receiver is more than a technical move which, even if successful, might result in Mr. Smith remaining in the position he now holds. This at least is the opinion of some of the court officials who have examined the papers on file. In New-York among persons who have followed the affairs of the United States Shipbuilding Company closely, the application for a second receiver was regarded last evening as an attempt to shut off the hearing before the special examiner, which has become a nightmare to some of the prominent interests in Wall Street. The recent delays in the hearing have been at the request of the counsel for the Shipbuilding company. and this led to general bellef in Wall Street that some plan was being formed for stopping the investigation altogether. The application for a second receiver, being made by the Mercantile Trust Company. was regarded last evening by bondholders who brought the suit for a permanent receiver as a move in the of Charles M. Schwab, and designed to to him an of going on give interest opportunity the witness stand and testifying about Shipbuilding affairs. Mr. Schwab was in the city last night, but he declined to make any statement on the subject. Nothing on the subject could be obtained from counsel supposed to represent him in the proceeding. "I don't consider this application serious, and don't think it will interfere with the present suit for a permanent receiver." Samuel Untermyer said last evening at his home in Yonkers. "It is not probable that the court would oust ex-Senator Smith, the temporary receiver, who was appointed by the court. The application may be meant to shut off the investigation, but we expect to go on with it."
