New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-11-25
CALLS OFFER A BRlBE.
Continued from first page


would suggest that you arrange to see him,
OF nave some one else see him, regarding TINS
matter. as I wish to assist you all possible In
your earnest efforts TO rehabiitate this property
at the least loss to the security holders
your criticism OF me in influencing you TO APP
prove Of reorganization is unjust, as | did 1t
for your best interests. and it was after Mr..
Schwab agreed to all ne did, and with the best
favor possible that / brought you the letter
which you signed as requested by me, and which
that night ! sent to Mr.. SChwabs house. and. as
stated. it was after Mr.. Schwab had agreed 70
comply with my request in order to protect me
from loss in the case Of advances, which had
been made and TO be made 70 you at that
time. Under any other consideration I could
not IN justice TO myself have anything 70 do with
the transaction whatever. Yours very truly,
JOSEPH H. HOADLEY.
Copies Of data referred to above inclosed.
BETHLEHEM COMPANY SURPLUS ASSETS.
At the beginning of yesterdays session Of
the hearing, Mr.. Untermyer drew Mr.. Nixon's
attention to the statement which had been made
to the Stock Exchange al the time of the appl-
cation to have securities of the shipbuilding
company listed, December "a that the surplus
assets OF the Bethlehem Steel Company were
over 81. 100000. Il understood Mr.. Nixon said.
that the BethIehems surplus assets were 81
100000 and that they to be kept intact
by the shipbuilding company, as provided IN the
mortgage. 1 learned these things from Mr..
Schwab"
Q-were there. in fact 100000 Of surplus as; as
I
representations in regard to that company were
made? A.-That is what the books showed. Ia
so. That sum was ordered written of from the
surplus OF July 30, 1892 by Jones, Cesar
plcy eM b H0 the e bethlehem company.
current assets of the Bethlehem company at the
oWhos if anybody Of the United States ship ZIP
building Company investigated the books OF the
Bethlehem company? A--Nobody
Mr. Guthrie objected to these and many fol-
lowing questions and answers, but Mr. inter
Inyer held his line of inquiry
Q-Is It not a fact that in August, 1902, when the
Bet9ienem company We" .3s SETS We're s 80 90
instead of 100000? A-Yes it is a fact.
Q-When you. as president Of the United states
surplus assets Of the Bethlehem were 50 5000 in
stead Of 100000 and that $4,000 had been oTaersq
written off before you purchased the plant Dut haI
not been written of did you not think It was your 6
investigation, Mr.. Untermyer c., -
Q-Referrng to the statement TO the Stock E *.
included surplus current assets was really writ
ten on before December -, "n ne tlT IepOi' vas
QNwhy did not the statement TO the stock Ex-
plus Current assets of the Bethlehem company had
been written o2 Al don't know was ~, never y
not responsible for them now. - - ..
not? A2Ye s''f but "fS die 'i not do it.
Q-Was Mr.. Pam present az the tine .S OF the as
cussion about the writing on OF the Sz50OVVF A
ODD Mr. Pam take any part in that discussion?
Q.-Wnat did the constituent companies own as a
Am not enough OF a lawyer to tell you;
1t was mortEaged to the shipbuildIng company
It conveyed its plant by deed. and TOOK back
Q-You know that the creditors Of the constitu-
ent companies claim that the assets OF the ship
building company belong TO the constituent comPa-
mics? Al don't know. Mr. Gntermyer; you cure re
judges will soon be struggling.
STOCK EXCHANGE STATEMENT AGAIN.
After the schwab letters had been put in evil
dence Mr. Untermyer again returned to the
statement made to the Stock Exchange, and
asked what warrant there for the state
rnent to the Stock Exchange that all the prop
erty and quick assets belonged to the shipbuild-
ing company Mr.. Nixon said the statement
was prepared by competent persons.
Dwell. after this did not the Union, Iron
Works borrow money on its own obligations? A
o.-And was it not upon the representation that
the Union Iron moTks 0Wnf f6at fn the banks Mere
willing advance the money.
Mr.. TTntermver then turned his attention again
to the Bethlehem Steel Company. and there
was running fire Of questions on that sub
ject accompanied by constant objections by
Mr. Guthrie
Q.-when it was agreed to. take over the Beth
lehem company. why the shipbuilding com
panys stock increased by S25,O0OGO0 instead OF
S91 Of stock TO 90? A.-NIr Dresser told me the
Trust Company Of the Republic was to get s1 cd So
oG1 and I was TO have 100000. which 1 told
him would turn over TO the sh s com
DO not know what was TO be done with the other
ODD you not know it was be given to Mr..
Schwab? Al did not
PAM NEVER DEMANDED HIS MILLION.
Odd Mr.. Pam ever make a demand for his
81 900 OF stock? A.-No; there was never any
u1 OATn what wav was the Carnegie Steel Com
[ ted VIII he
ing Company? Am arrangement was made by
which the shpbuildnE company was TO have steel
10 compete with foreign builders The agreement
was in Mr.. Carnegle's own writing
Mr.. Nixon told of trying to get business for
the shipbuiIding company and Of his going to
washington to put in his estimates on two bat
tJeships. He was instructed. however. that Mr.
Pam wanted other estimates to be put in Mr..
Nixon said he was requested to sign bids in
blank but he refused TO do so. His own esti-
mates were not put in. but Mr.. PANS estimates
were.
Did YOU get the contract?' asked Mr.. Inter
myer.
mo; we were the highest bidders" replied Mr..
Nixon.
Odd the Bethlehem pay to the shipbUding
company sLS50,OO0 in cash for working capital?
ODD it ever pay any Of it? A-The only thing
we ever received the s250O00 be paid as in
oHow much was ever paid 70 the shipbuilding
| company by the Bethlehem Of the SIS 900 for
WORKING capital? A-Not a cent
O.-Is it true that the Bethlehem company
charged the shipbuiIding company excessive prices
for forgings bought by the shipbuilding company?
A-Not on government forgings; no.
witness said there was an agreement by which
the shpbuidng company bought materials
from the Bethlehem company. and the man
ayers Of the Bethlehem company fixed the
prices When the prices too high he or
dered materials purchased elsewhere but not
always.