Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-12-24
NIXON DENIES IT.
Says Many Of Schwab's State
n0ents Are Incorrect.
One Of Them Is Not Only Ridiculous
but Is Ma|iciously False.
Continuation Of the shipbuiIdins
Hearing at New York.

dutHoiiIc statement Was SlSeIi Out,
today, at the office of Lewis Nixon:
Mr.. Nixon had many inquiries as to
his views relative to Mr.. Schwab's an
swer of yesterday, and SO gave out the
following statement:
There is SO many of his statements
that run counter to my recollection that
they had best be cleared up on the
witness stand. However, that l ever
gave him or showed to him so-called
prospectus of June IA, or that in any
way misled him, is not only ridicu-
louS, but maliciously false.
Il was anxious to keep the company
going. Having sold none of my bonds
or other securities, all my interests
were tied up in it's success, and it
would have been success had any of
the aid, which a constituted company
is expected to give, been forthcoming
from Bethlehem"
AT the opening of the United
State Shipbuilding hearing. today,
Counsel Untermyer at once took
up the subject of the publication
of the Charles Alexander correspond
ence declaring that so far as he knew,
neither himself, his associate counsel,
not anyone connected with his Office
had anything to do with giving the
correspondence to the press. He said
that he had learned that not less than
Is copies of the correspondence had
been made and distributed broadcast
in Network that he himself had had
his copy only during the examination.
He said that copies Of the correspond
ence had been offered for sale in news
papr offics in New York.
Under such circumstances he con-
tinued, ut is absurd to claim that such
correspondence is privileged"
During Mr.. Untermyer's extended re-
marks on the subject, he referred to
tn alleged lack of courtesy" shown by
opposing counsel and efforts to side
track the real issues in the case to
Mr.. Schwab's press agent (whom he
named) and the inspired articles fur
nished to the press by the other side
rejecting upon u.s."
Mr.. Guthrie, replying, declared that
he had summoned three witnesses from
the paper which published the CORE
spondence, yesterday, and asked per-
mission to go into the matter, but
Counsel Untermyer objected, to the
subject being interjected into the ship
building hearing. Referee Oliphant
sustained the objection and directed
that the compliments next witness,
Alfred Rose, an accountant, who made
an examination Of the Bethlehem Steel
Works for Receiver Smith, be called.
Mr.. Guthrie entered protest.
Mr.. Rose testified as to the financial
status of the Bethlehem company from
July 81, 1899, to October, 1908, his in
formation prior to July 81, 1902, being
derived from reports of officers of the
firm. For the year and three months
since then he had made a direct per-
sonal investigation.
During a pause in the examination
Mr.. Guthrie brought up another SEN
sational subject by stating that he has
been Informed that the process server
who served a subpoenae upon John
Gates, yesterday, had used Mr.. Guth-
rie's card to gain access to Mr.. Gates.
Mr.. Utermyer said that the subpoenae
had been served by an employe of his
Office, and that if he had resorted to
amy such unprofessional conduct" he
would be Immediately discharged. Mr..
Gates was to have been examined, to-
day, and appeared at the hearing &C
companied by his counsel, but upon
stating that he knew nothing of the
matter on which Mr.. Untermyer desir-
ed to interrogate him, he was excused.
Mr.. Rose spoke of the discrepancy
between the annual reports of the
Bethlehem Company and the statement
submitted to the Stock Exchange COM
mittec at the time application to list
the stocks of the Shipbuilding Com
pany was made and was "surprised"
that the excess in earnings given in the
latter statement might have been due
to failure to charge off depreciation all
owed for in the annual reports.
Mr.. Rose testified to certain de-
ductiOn of $250.000 inventory value of
the Bethlehem property, made in No
vember. 1902, but charged back to the
balance sheet of April 80, 1902. Wit
ness declared that had he been pre-
pairing the April balance sheet he would
have deducted this amount at the time
vember was to bring the inventory
down to manufacturing cost" This
change in policy, he said, he had heard
WdS uue " the duNlCe OI accountants
Mr.. Untermyer put a number of ques-
tions as to the Imitation of the bal
ance sheet, April 80, by this $250,000,
but Mr.. Rose refused to testify only
to the figures and would express no
personal opinion.
In the Stock Exchange statement,
current assets of July 81. 1902, were
overstated to the extent of over $780,
900, he said, as shown by the books of
the company. The overstatement of
assets was brought about largely by
the inclusion of life assets, of bad ac-
counts, one item of over $4,000, due
from an ordnance company. being in
cluded in the assets at it's face value,
although the company had gone into
the hands of a receiver during the pre-
ceding year. The subsequent deduc-
ton of $250,000 was made from the
accumulated earnings, thereby charg-
ing bad accounts to this amount. in
Cured previous to the purchase of
Bethlehem by the Shipbuilding Co. |
against the earnings of 1903, belong
ing to the Shipbuilding Co.
After the recess Mr.. Untermyer
asked permission to withdraw Mr.. Rose
and put on Third Vice