New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-10-13
QUESTIONS FOR SCHWAB.
HERRING FOR TOMORROW.
NJ. Dresser Expected TO End Test
anOnv on Bethlehem Steel.

II was learned yesterday al the Office OF sam
Vel TnternNer. counsel FOR the bondhoders IN
{ the shipbunding case. that the hearing will not
proceed this morning. as expected. but has
ban postponed until tomorrow at 1890 a m
rns adjournment is due to the indisposition
Of william n. Guthrie. counsel for Mr.. Schwah'
who wac insur~d few days ago while out rid
ing Nj Guthrie. although he was at his Office
yesterday has said TO Mr.. Untermyer that he
has not sufficiently recovered TO proceed to-day
with the shpbuf'ding case.
II has also been arranged between Mr.. Guth-
RE and Dir. Un;ermyer that Mr.. Guthrie Is 10
produce Mr Schwab as a witness whenever re-
CURED by Mr. Untermyer. without subpoena.
II is understood tina; d. lie Roy Dresser. for
ynerlv president Of the Trust Company OF the
Republic Whose cross-eNamination 10y MI
Guthrie WAS in progress at the adjournment OF
the ShipbuildirC hearing last "Wednesday ny the
special examiner, Mr.. Oliphant. viii be the hrst
witness tomorrow. finishing his testimony
Lewis Nixon will follow Mr.. Dresser on the
stand and viii be questioned about his part
in the sale Of the Bethlehem Steel Company 10
The United States Shiphuilding Company. by
Mr.. Sohvah and the part taken in the transac-
zion by J T. Morgan & Co
The f2oudhol1er Protective Committee also
expects 10 obtain from Mr. Nixon important ties
sir1ouv as 10 the actual value q the seNeraI
plants combined INTO the United States ship
building Company. and the amounts paid Tor
these properties respectively by the ship6ulldlns
COMPANY 10 information Oh this subject mas
,lp 10 the present time been made public, and
SO Ear as known il has never yet developed on
whose advertisement the valuations were hNed'
Cs,,rta,-e Loeb who was the first TO organize
movement Of The first mortgage bondholders In
,,,rosito,, 10 the reorganization plan. SAID IN me
course Of a statement made by him last june
Prices were raid for in excess Of the values
Of the wards purchased. There was one laCS Se
site down At Ca~teret y AN e1 ~, uo..-,- Is
and some marsh lano-tor WhlSn ,9 9,is o ~ g,
,~ei,-e5 100000 in cash and S3oOvfo IN mrs.
mortgage bonds. and like amount in preferred
and common stock
Mr.. Nixon will also be asked to explain the
details OF the way in which Messrs schwao and
Pam and their associates obtained control Of
the United States ShipbuTding Company the
completeness Of the control being shown 10y the
,af,sal Of Mr. Schwab. as alleged. TO allow d.
,ecto~s 10 attend certain meetings Of the board
called by President Nixon.
other witnesses to be called in the course OF
tbe Investigation which IL is expected will ex-
tend over a period OF several weeks. VIII be
Max Pam director and chairman Of the exec
1tive and finance committee Of the United
States Shipbuilding Company and attorney for
Mr. Schwab. George ". Perkins. Of J. P. Nor
gan a Co.: John w Young the original pro-
Inoter Of the shipbuilding company; Colonel
John J NcCook Of Alexander & Green; George
p sheldon. chairman OF the reorganization
committee and Mr.. Schwab. In addition 10
these eight men, there viii be several witnesses
whose names have not yet been made public
M Pam viii be questioned as TO Mr. Schwabs
dominance in the shipbuding company and
viii be asked to tell why the Bethlehem Steel
Company never paid any Of its earnings into
the formers treasury. what influence was ex-
20 he S10GElskN
second mortgage bonds received by Mr.. Schwab,
and who selected the board Of directors.
Mr.. Perkins is 10 be asked among other things
10 say definitely why J. P. Morgan & Co took
q part in the sale Of the Bethlehem Steel Com
panv ana Why the transaction was not closed
in the name of Nj Schwab. Mr.. Young who
visited Europe for the underwriters. VIII tes-
tify st is understood. concerning the terms
at which the subsidiary companies were merged
into the United States Shipbuilding Company
Colonel McCook viii be called to give testimony
as 20 the steps take by the Mercantile Trust
Company OF which his firm is counsel, in the
French and English underwriting for the United
States Shipbunding Company, and the terms on
which the Trust Company OF the Republic was
made party TO the transaction.
Mr. sheldon viii be asked the equity Of
the reorganization plan under which II is pro
posed to convert the first mortgage bonds into
the second mortgage bonds. held by Mr.
schwah. into first mortgage bonds.
Among the questions which VIII be put to Mr..
schwab by counsel for the Bondholders' Pro-
tective Committee win be:
why the certificate OF Incorporation Of the
United States Shipbuilding Company was
amended in August. 1902 so as 10 give voting
power 10 his 100000 second mortgage bonds
ss wen as TO the preferred and common stock
although the instrument securing the first mort
gage bonds. although made al about the
sane time, contained clause giving those
bonds any voting power as stockholders?
Who evolved the plan for the voting trust,
whereby for seven years the reorganized Ship
building Company was TO be in control Of Mr..
Schwab and his friends?
Additional details concerning the pool agree
rlert with Harris Gates q Co for first selling
the Schwab-Norgan Shipbuilding Company
stocks.
II was reported yesterday that the receiver
was considering the step Of asking the courts
70 punish for contempt certain men in the man
agement OF the United States Shipbuilding Com
pany. acting after the proceedings for a re-
ceiver I'm the hands Of the court
The regular date for the annual meeting Of
the Shpbui ding Company is the third WeGnes-
day Of October. which this year falls on Oc-
tober p II was decided at recent meeting
OF the directors 20 issue a call for a meeting
OF the stockholders on that date. According
20 the 'eTms OF the Injunction. the officers and
directors OF the company restrained from
exercising any corporate function in connection
With the cOmpaaly's affairs. and the legality of
the cal OF the stockholders meeting has been
brought INTO question. IL is understood that
the call Tor the meeting was deemed TO be
legal, but the directors have no intention of
usurplng any prerogatives OF the receiver
OF infringing upon the limitations OF the in
junction. IL is admitted that no action may be
taken al this stockholders meeting other Than
? general consideration Of the company's