The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1903-11-06
SPLEEN SHOWN AT HEARING
NIXON MAKES BITTER ATTACK
ON SCHWAB,S ATToRNEF.
Files Personal Protest Against ths
Method OF ausst,oning-Deolares Il
Unfair-ahs wi.hholdlng OF shs BETH
lshem Dividends Gone Inso-Nsxoa

Unfair-A ne Withholding z of tho BETH
lehem Dividends Gone Into-Nixon
Turns Turtle ON the Matter.
New York, Nov. 5.-The features Of
to-day's session of the hearing in the
United States Shipbuilding case were
the bitter attack made by Lewis Nixon
upon William D. Guthrie. counsel for
the defendants and representative Of
the interests of Charles NJ. Schwab, for
his methods of cross-examination; lead
ing questions by Mr.. Untermeyer, oour-
sci for the complainants, as to the abb
sence of competition between the Beth
lehem Steel company and the Carnegie
plant of the United States Steel corpor-
alton in government contracts for ar
NOR plate; and the entire change Of
front Of Mr.. Guthrie. who heretofore
had aimed to bring out the fact that
the value Of the constituent plants Of
the United States shipbuilding compa-
ny was not overestimated. To-day
Guthrie adopted line of questioning
designed to show that the estimates Of
value were made by the promoter, the
vendors and other interested or unex-
pert appraisers, and were practically
without weight in determining the ex-
act value of the plants and the assets
of the consolidation.
Mr.. Nixon was on the stand all day.
His oss-exal1lination was finished and
the redirect examination partly COM
pleted.
At the opening Of the afternoon ses-
sion he presented personal protest IN
which he declared that Mr.. Guthrie, In
consultation with Max Pam, had adopt
ed a line of questioning designed to
place him in a false and discreditable
position regarding the sale of his plant
to the Shipbuilding consolidation.
At one time during the hearing Nixon
shouted at schwabs lawyer: ~ knew
would be made the target in this move-
ment Of selfishness and greed!''
The protest was angry and bitter in
tone, and intimated that Guthrie had
been unfair in asking him to answer
from memory questions about the
finances of his company without oppor-
tunity to look up the details, while
Guthrie had had the benefit Of full In
vestigation Of the figures.
BY agreement of counsel the nrotest
was stricken from the record, but Mr.
Nixon thereafter during the hearing In
sisted that If he were to answer ques-
tions he should be allowed to make the
necessary explanations.
Besides asking Nixon about the or
ganization of the Shipbuilding conlpa-
ny, the valuations put upon The com
stituent companies and the methods by
which they were reached, they took up
the alleged withholding of dividends by
the Bethlehem company, an action
which, according to the charges of Re-
ceiver Smith, contemplated the wreck
ing of the Shipbuilding company.
Guthrie placed in contrast Nixon's at
titude in demanding, by letter to Pres
ident McIlvain, Of the Bethlehem COM
pany, that the Bethlehem directors de-
clare a. dividend to save the Shipbuild-
ing company, and later, at two subse-
quent meetings OF the Bethlehem direc-
tors, in acquiescing in resolutions de-
claring 1t inexpedient to declare such a
dividend. He also brought out that
Nixon had voted for the resolution for
the expenditures for betterrnents. This
was the means, SO Receiver Smith
charged, by which earnings were di-s
verted from dividends to needless inn
provements.
Guthrie took up figures from the
financial reports Of the Bethlehem COM
pany to show its inability to pay divi-
dents. Mr.. Untermeyer, from the Same
reports, attempted to show that expen-
ditures for betterments and new ma
terial were excessive, and that the COM
pany might well have declared divi-
dend had it been SO desired He was
questioning Nixon about the trip OF ex-
animation made by Bethlehem and Car
negie officials to determine means of
improving the Bethlehem plant, when
the hearing closed for the day.
The redirect examination of Mr.. Nix
ON will be resumed tomorrow after
noon, and Charles M. Schwab may be
placed on the stand later in the after
noon.