The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1903-12-29

New York, December "a the
opening of the United States Ship
Building hearing today Counsel In
termyer at once took up the subject
OF the publication of the Charles
Alexander correspondence, declaring
that SO far as he knew, neither him
self, his associate counsel nor any
one connected with his office had
anything to do with giving the cor
respondence to the press. However,
he continued, Il do not see how the
qaestien Of contempt of court in the
publication of this correspondence
can be raised in anything but a pick
wickian sense" He sa1d that he had
learned that no less than fifteen
copies Of the correspondence had
been made and distributed broadcast
IN New York.
MI. Guthrie. replying. declared that
ne had summoned three witnesses
from the paper (The World) which
published the correspondence yes
terday and asked permission to go
into the matter, but Counsel Inter
myer objected to a hearing on this
subject being interjected into the
shipbuilding hearing.
Referee Oliphant sustained the OBJ
lection and directed that the COM
~plainants next witness, Alfred Rose,
an accountant who made an exami-
nation of the Bethlehem Steel Com
pany for Receiver Smith be called.
Mr.. Guthrie brought up another
sensational extraneous subject by
stating thai he had been informed
that the process server who served Il
subpoena upon John W. Gates yes
terday had used Mr.. Guthrie's card
to gain access to Mr.. Gates. Mr..
Untermyer said that the subpoena
had been served by an emplOye of his
office and that if he had escorted to
amy such unprOfessionaI conduct"
fSne would be Immediately discharged.
Mr.. Gates was to have been ex-
ami1ed today and appeared at the
hearITg, accompanied by his counsel,
but upon stating that he knew moth
kng of the matters on which Mr.. I'm
termyer desired to interrOgate him,
he was excused.
Mr. Roses testimony had largely
been anticipated by testimony
brought out at previous hearings and
an the receivers report. He spoke of
n discrepancy between the annual
reports OF the Bethlehem Company
and the statement submitted to the
stock exchange committee at the time
application to list the stocks of the
Shipbuilding Company was made and
-Asurmised" that the excess in earn
ings given in the latter statement
might have been due 70 failure to
charge of depreciation allowed for
IN the annual report. In the stock
exchange statement. current assets or
July 31St, 1902. were O~verStated to
the extent of over $500, 600, he said,
as shown by the books of the COM
rany. This was due to the inclusion
IN live assets. he said, of bad ac-
counts. The subsequent deduction of
$25O.00o was made from the accum-
uated earnings. thereby charging bad
accounts to this amount. incurred
previous 70 the purchase of Bethle-
hem by the S~hipbuilding Company,
against the earnings of 1908, belong
ing to the Shipbuilding Company.
L. C. Root. third vice president of
the New York Security and Trust
Company. which loaned $3.50, 600 to
Nessrs. Nixon and Dresser on their
note. on August Il. 1902. was put on
the stand. Mr.. Root testified hat so
far as ne knew. this loan of S35O,O0O
was the only one mad to Nixon and
Dresser ana jldl ib ItdIl itiu bttIl
made to the Trust Company of the
Republic. It had been understood
before his that the amount of this
loan was 100000 and that J. P.
Morgan and Company deposited this
amount with the Trust Company to
provide funds for the loan. Mr.. Root
said he could not tell if Morgan and
Company deposited this sum at this
time. IT was upOn the New York
r. - r--,--+ ~ +fn4 .hn
~$7.246.05O check was drawn by Mr.
Schwab to provide Nixon and Dresser
with funds for the purchase of the
Bethlehem plant md Mr.. Root was
questioned about Mr.. SChwlb'S daily
balances at hat time.
1t was shown that Mr. Schwab's
balance was rapidly increased imme-
diateiy prior to August 18th. 1902.
to an amount sufficient to cover h
amount OF the check. but Mr.. Root
could not say whether this was by
deposits from Morgan and Company.
Nj. Rose was recalled and gave 4
technical description OF the effect IF
the charging off of S250.000 from the
Bethlehem assets in November. 1902.
declaring that the ShipbuildinC Com
pany had bought on representations
in the books S25O.0OO in current
assets. which the facts did not bear
out and that this same had appeared
as current assets In the statement to
the New York stock exchange. TAX
ing up then the alleged withholding
OF Bethlehem dividends. which. so it
rs charged. was instrumental in
wrecking the. Shipbuilding Company
which owned the Bethlehem stock.
Mr.. Untermyer obtained from Mr..
Rose the statement that the BethIe
hem Company. which on April I.
1902. had debts amounting to s712.-
900, had by Stepmber 1, 1908.
emerged entirely from debt. In
addition to applying this sum to debt
reduction. Mr.. Rose stated. the Beth
Iehem Company had since July 81,
1904. invested s313.625 in the Uru-
quay Iron Company
Upon Mr.. 'Guthrie's objection to