The sun., 1903-12-23

comnlainants aver that the cross-com.
pIaInant James smith. ,jr., receiver Of the the
Shipbuildng Company. knows and mas peeh
informed that such charges are untrue
Mr.. Schwab denies the charge that he
caused the Bethlehem company to pass
the payment of 81 ,00O, 900 in dividends, which
1t had earned, and says
The proceedings for the appointment Of
the receiver temporarily destroyed the credit
OF the Brhlrhcm Steel company; ana on or
about the first day of July. 1903. IT was mn
nrac,icable and would have been nprudent
and improper for the board of directors oil the
Steel company to har" borrowed ne moh'N
with Thoh th to "y SEn@a s%G" on III" sh"
building Company first mortgage bonds
subsequently, on the 3Ist of July: ion'' as ,n"
such that il was likewise imprhcticaDle ior
it's board of directors TO have borroWsd lhe
money with which To pay dividend suhlcl"i,t
10 meet the interest nCcrung Oh lh' DohuS
secured by the mortgage 10 I'll" Now YORK
security and Trus, Lonp"nN. n,noan,img l,.', TO
in May June or July, 1908, borrowed - 900 OPP
which, 1t is charged ia the cross bill It should
have FURNISHED to- ne SpnnihhsI m ths ',ssI Sy
the Shipbuildng Company TO pay interest due
or accruing and current ilnnIl',"s' ,v
bankr,lptcy of the ShipbuildlnG Company or
have email bled it to continue or resume business
Mr.. Schwab quotes figures from he
receivers report to show how ne was he-
ceiyed by Nixon and Dresser in the state
nent that the Shipbuilding Company had
s5.0OO,OoO working capita and 81 22o goo
profits in sight from work on hand En-
animation, the answer says WI snow
the propert les. excluding the Bethieheh
plant, to be worth $8,WO'oOo, instead Oh
$4,000 OOO as stated in the prospectus.
Furthermore he says, it did not make any
profits in the year ended last June ana
that it's condition then was much worse
than was supposed. Mr. Schwab also
denies that he secured control OF the com
80 ho,, ,,iv,n inla aI
mortgage clause giving his bonds voting
power in II in addition to his stock and tina,
he had ANYTHING to do with the election OF
directors alleged to have been cont rolled
by him.
ROW OVER ALEXANDER LETTERS
The hearing in the United States Ship
building case, which was to have been re-
sImed Yesterday morning. ad TO be ad,
iourned on account of the illness OF Samuel
Cntermyer, counsel for the complaining
stockholders Mr. Untermyer expects TO
be ready to 60 on this morning.
Before the adjournment YESTERDAY .;' lay,
morning W. D. Guthrie, represe ntlng me
defendants side, protested against the
publication in morning newspaper OF some
Of the letters passing between Charles .
Alexander and the firm of Alexander
Green, which have been kept out OF the
record as privileged communications pend
ing ruling of the court.
Mr. Guthrie offered in evidence copy OF
the paper. which printed some of the letters
and said that the person who gave the let
ters to the newspaper was guilty OF direct
contempt of court.
We ask" said Mr.. Guthrie of Examiner
Oliphant, "tSat - morrow morning the
examination of the complainants' witnesses
be suspended and that you take testimony
discover the person guilty OF this CON
tempt 90
Henry Wollman, who is associated with
Mr.. rntermyer said that he had no obiec-
ton to that but that he could not speak for
Mr.. Untermver "Tf there is any nsin,ia
ton" said he, that we had anything to do
with the giving of these letters to this news
paper it is absolutely false"
| hope so for the good name OF the bar,
retorted Mr. Guthrie.
Mr. Wollman said that Mr.. Guthrie had
done much himself that was indefensible
and added that he believed that the guilty
persons should punished He thought
that Mr. Untermver would be Wiling 10
cooperate in this matter. In all probability
several persons will te s'lbpPnaed TO show
from whom the letters came.
Copies of the letters hava been IN the
hands of several lawyers connected with
the case and their contents have been
freely shown with the understanding that
they should not be made public until they
had been admit ed to record
John W. Gates, who is under subpoena
asked through his counsel Yesterday to be
called this morning or to be excused for
week owing to a business engagement in
Chicago Mr.. Gates may therefore be the
first witness this morning.