The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-11-06
LAWYER HAD NO
MERCY ON HIM
Rough CrOss-Exsmination of
Lewis Nixon.
SCHWAB NEXT ON THE STAND
INSIDE FACTS OF sHIP-BUuD-
ING PROMOTION.
SCHWAB NEXT ON The STAND

n EW YORK, Nov. 5.-The features
IN Of today's session OF the hearing
I'm the United states ship building
case were the bitter attacks made by
Lewis Nixon upon William ID. Guthrie.
counsel for the defendants and repre-
sentative of the interests of Charles
Schwab. FOR his methods OF cross-ex-
animation: leading questions by ar
DnIermeyer. counsel for the complain
ants as TO the absence of competition
between the Bethlehem steel company
and the Carnegie plant OF the United
States Steel corporation in government
contracts for armor plate. and the en-
tire change of front of Mr- Guthrie who
heretofore had aimed to bring out the
Iact that the value of constituent plants
or the United states ship Building com
pany was not overestimatcd.
Today Mr.. Guthrie adopted line OF
questioning designed 10 show that tha
estimates OF value were made by the
promoter the vendors and other inter-
ested or incNpert appraisers. and were
practically Without weight iu determin-
ing the exact value of the plants and
the assets of the consolidation.
air. Nixon was on The >t1Ud am day.
His Croes-eNamination was iltishcd and
the redirect examination parOE CONF
pleted.
Nixon Protested. ~
At the opening Of the afternoon sesA
sion he presented "a personal protest fin
which ne declared that AR Guthrie I'm
consultation with Max Pam. had adopt
ed a line OF questioning designed to
place him I'm q false and disCreditable
position regarding the sale nf his plant
20 the snip building consolidation. The
protest was angry and bitter In tone.
q I'll IrsrH HrH.e.
been unfair I'm asking him To answer
from memory questions about the
finances or his company without. OPP
pOrtunlty TO look mp the details. while
Mr. Guthrie had had the benefit OF a
run inveStiga tiOn of the figures
By agreement Of the counsel. the pro-
test was stricken from the record. bu-
Mr. Nixon thereafter during The hear
ing insisted that if ne were to answer
questions he should be allowed 90 make
the necessary explanations.
Besides asking Nixon about the or
ganization of the ship building COM
pany. the valuations pat uU0n the con-
stituent companies and the methods
Dy which they were reached. Guthrie
took up the alleged withholding of div
idends by the Bethlehem company. am
action which, according 10 the charges
or Receiver smith. contemplated the
Wrecking Of the company.
Bethlehem Dividend.
Guthrie placed I'm contrast Nixon-s
attitude in demarding by letter ~
President McTlvain OF the Bethlehem
company, that the Bethlehem directors
declare dividend TO save the shin
building company and later at two
subsequent meetings OF the Bethlehem
directors, in acquiescing in resolutions
declaring IL ineXpedient to declare such
dividend. He also brought out thar
Nixon had voted for the resolution for
the expenditures for bettermeuts. This
was the means. so Receiver smith
charges. by which earnings were df-
verted from dividends to needless inn
prOvements-
Guthrie took up figures from the
financial reports of the Bethlehem
company to show It's inability to- pay
dividends. Mr.. Untermeyer from the
same reports attempted 20 show that
expenditures for betterments and new
material were excessive and that the
company might well have declared a
dividend had it been so desired. He
was questioning Nixon about the trip
Of examination made by Bethlehem ard
carnegie officials TO determine means OF
improving the Bethlehem plant when
the hearing closed for the day.
The redirect examination Of Mr.. Nix
on viii be resumed tomorrow afternoon.
and Charles NJ. Schwab may be placed
on the stand later in the day.