New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1901-08-21
en-. SCHWAB MOTTO RESIGN
yICKERS SONS & MAXIM MAY, AFTER
ALL GET THE BETHLEHEM
STEEL COMPANY.

ALL, GET THE BETHLEHEM
STEEL COMPANY.
Charles NJ schwab will not resign from the presi
aency Of the United States Steel Corporation to de-
vote his time to the management of the Bethlehem
Steel Company. a man close to Mr.. Schwab. who IS
authority this statement said that the official
head OF the Steel Trust IN every way fitted for
the post he occupied, and that he enjoyed the com
plete confidence AMI friendship OF Mr.. Morgan.
The report that Mr.. Schwab and Mr.. Morgan have
disagreed several essential points in the conduct
Of the corporations affairs was characterized as
misleading
representative of banking house which is In
tinately associated with the United States Steel
Corporation said yesterday:
mr.. schwaJ still retains controlling interest In
the Bethlehem company. He may not hold 1T per-
soually, but securities in the hands or his
allies, who will dispose of them as he may see nt
did Mr. Schwab purchase these securities In
order that he might assume personal management
of the Bethlehem property" was asked
He did not. Mr.. Schwab has no intention OF
devoting his energies to any company other than
the United States Steel Corporation
did Mr.. Schwab secure control of the Bethlehem
concern for the steel corporation?" ne was asked
II do not think he did" the reply.
Another man declared that President Schwab In
June secured control of the Bethlehem Steel Com
pany for the purpose of reselling to the United
States Shipbuding Company, the formal pros
pectus of which concern issued on May Z, by
ID. w. tOOr az To-, the pIOiHOtSlS VI tAiC PANPS~~N
combination This company was to include the
Newport News Shipbuilding and Drydock COM
pany the Union Iron Works the Bath Iron Worhs'
Limited; the Hyde Windlass Company. the Cres-
cent Shipyard the Samuel L. Moore & Sons Com
pany and the Cdnda Manufacturing Company.
For the purpose OF carrying out the plans or con-
solidation of these shipbuilding plants. H. W. POOR
& Co. Immediately after issuing their formai
prospectus, invited investors to subscribe Tor w.
OOO0OO preferred stock par, and for an equal
amount OF common stock.
MIR. SCHWAB'S OPTIONS.
IN Iune 7 II was reported that Mr.. Schwab Sc
cured options from Joseph Wharton. the largest
stockholder and Robert p Linderman president OF
the concern on enough bethlehem stock to give
him control OF 100000 out of tho anWo shaFes INTO
which tho company's stock war divided. Ihese op-
lions Il was said. would expire on august 2s Ihe
nurchaso price was reported to &c S4 n share Five
days ago It authoritatively announced In Fhila
dclphia that more than 10000 shares OF the total
Of sooCoO wero locked UP in Mr.. schwah's name In
the vaults OF the Girard Trust Company which
was acting as trustee In the transaction
Yesterday II asserted by n Wall street BANK
or who has closely followed the deal since It's In
cipiency that the options on the bethlehem shares
which Mr. Schwab had purchased. had turned out
TO be an elephant on his hands.
AS I understand the situation" said The Trib-
une's informant, the promoters OF the United
States shpbuilding Company. for whom Mr.
Schwab purchased control OF the bethlehem stock
have met less success than they expected. In my
opinion. they found 1t impossible to take over the
Pennsylvania steel concern. and informed Mr.
Sehwab to that effect Al the time. they
offered him sixty days in which to rid himself OF
his Bethlehem holdings. When Mr. Morgan re-
turned from EUROPE he formed syndicate which
relieved Mr.. Schwab from personal responsibility
for his contract with the promoters of the United
States ShiP5udluG Company. The sixty day OPP
| tons expire this week"
Then you believe that u syndicate and not Mr..
| schwa5 personally now controls the Bethlehem
/ company" he asked
That IS M view
/ TO whom VIII these holdings go?'
! To the Vickers' Sons & Maxim Company"
MOVES BY vICKERs' SONS.
| For many months there have been paragraphs
/ in English and American newspapers concerning
tho attempts OF Vickers' Sons & Maxim. OF Barrow
in-Furness. England TO construct or purchase out
4 right shpbuildng establishment In this country
/ More than two years ago that hrm entered int
negotiations with the late c. Y. Huntington for the
purchase from him OF large interest in his grea
| Newport News concern. intending 10 establish II
connection with the shipyard extensive plant fo
the manufacture Of guns, but nothing came OF thes
negotiations. Last February advices were received
from London that the negotiations then In progress
Tor the purchase by Vickers' Sons & Maxim OF III
| William Cramp & Sons Ship and Engine Buildni
| Company. OF Philadelphia. had been broken of
| At that time Henry SeliEman OF the banking hous
or j. ~ W. SeIlgman " Co. ana Il director Oh NIAii
| & Sons said that ne had heard OF the propose
| sale. Not long afterward Charles II. Cramp. presl
dent OF the Philadelphia company, SAID that the re
| ports OF Cramp- Nickers deal were all rot me
| IL reported that the big English and America
plants were soon 20 be bought by syndicate meade
| by the Morton Trust Company. Thomas +. Ryan
! Vice president OF the trust company was credite
| with being the guiding spirit OF this new venture
| Az far Is known the negotiations for the unto
OF the two English and American yards have bee
| abandoned temporarily mt least.
II Is still believed, however. that the Nickers son
& Maxim Company strongly OF the opinio
that the ownership of armor making plant
this country Is essential 10 the development OF the
business. Having difficulty in arriving at an under
| standing with the Cramp shipbuilding company. tn
Vickers work. according to financial men /
| Philadelphia. to purchase the controlling tnteres
In the Btehlehem Steel Company. This compan
on May % 1889. leased for 999 the property
the bethlehem Iron Company. IL was announce
last Nav that the English firm had secured n
opton on the stock OF the Bethlehem Steel Com
pany at price bordering on .. and that New
York syndicate would underwrite the combination
A week after this announcement IL was reporte
| that negotiations had been perfected for the pun
! chase OF the steel plant by the Nickers company
Later IL was said that Nickers' Sons q Maxim ma
allowed the bethlehem property TO slip throus
share II was also said that their representa- nv
vent 10 Mr.. Schwab and offered him price whic
would have Melted him profit OF 100000. bu
which he declined to accept
IN Is interesting recall these reports IN IN
light of the assertion made yesterday that the syn
dicata which is said 10 have taken MIR. Schwab
| the bethlehem property, would nov