New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-10-12
SCHWAB TO TESTIFY.
NOT EVADING SERTICE.
Calls on Mar Pam at Waldorf-
Hearing TO Go On Tuesdou.

Charles NJ Schwah spent part of yesterday in
his home at the Lorraine. and part Of the day
~ the Waldorf-Astoris- where he in the
company OF Max Pam In the afternoon he
went out driving lie vas not willing to make
sny statement regarding the charges OF counsel
for the bondholders If the United States Ship
building Company. but he contradicted a report
that he evading service OF a subpoena TO
appear as q witness before Henry D. oliphant.
the special examiner in the bondholders' suit
One Of AIr. Schwab's close friends said yester-
Gay that Mr. Schwah perfectly willing TO
so before the referee and tell all he knew about
the organization Of the United States Shipbuild-
ing Company the sale Of the Bethlehem Steel
Company and the mortgage proceedings but he
SD not wish 10 be placed in the position or
volunteering testimony. Mr.. Schwab expects TO
ne called q witness his friend said. and
therefore he is unwilling TO make any statement
10 the newspapers which he would have to re-
peat on the witness stand. When he does speak
he viii dispose OF some Of the charges based
upon the testimony OF MFR. Dresser"
It was said yesterday by those in position TO
know that Mr.. Schpab VIII not be called as a
witness IN the United States Shipbuilding case
nnsil Lewis Nixon. John w Young, James
Duane Livingston and possibly two other wit
nesses have testified. Counsel for the bond
holders. il was said. are determined 10 ascertain
and have placed on the record what the real
value Of the Bethlehem Steel Companys stock
was when il was sold the shipbuilding synoi-
cate. and who really owned the 2gs.9lO shares
IF stock transferred This information is said
TO be necessary in the proceedings. which are IN,
tended prove that Mr.. schwabs Slocoloo
mortgage is void. and that he IS llaple Tor go,
100000 in stock Of the shpbuiding company Tor
which he virtually paid nothing.
The examination Of D. lie Roy Dresser pron-
sbly viii be continued when the hearing before
Mr.. Oliphant is resumed tomorrow morning in
the law Office of Guggenheimer, Cntermyer &
Marshall. at No. 80 Brosd-st. Other witnesses
70 be called after Mr.. Dresser viii be asked
about the values and ownership OF the capital
stocks Of the subsidiary companies OF the Cnileo
States Shipbuilding Company which were pur-
chased.
No subporna had been served on Mr.. Schwab
yesterday and il is possible that viii not be
served on him for some days, as MI. SchWao
does not want 10 be prevented from going TO
Pennsylvania and inspecting some properties
The Illness of Mrs Schwab is said TO be a rea-
son for his wish to be free from subpoena ser
vice at the present time. but he has declared
that he viii not evade the service Of subpoena
The report of ex-senator Smith, receiver OF
the United States Shipbuilding Company. PROP
ably will be made public this week but nnucn
secrecy regarding it has been maintained. OF
particular interest t. the stockholders VIII De
the sum they viii be asked TO raise by assess
rnent It is believed TO be near S2eo0oo. The
New-Jersey corporation laws make original
stockholders liable for the debts of corpora
7ion. When the shipbuilding syndicate turned
over the Bethlehem Steel Company in the gen.
erai merger the agreement expressly stated tn2I
the certificates for the preferred ana common
stock of the shpbuilding company shall be full
maid and worcestershire, and the certificates
therefor shall be so expressed on their lace.
While the intention was TO make the STOCK nom
sssessa bic. lawyers contend that the New-Jer-
sev statutes provide for the assessment OF origi-
nal holders of stock. even when II Is denoInl-
mated -'unassessable' If il can be shown that
The par value Of the stock never was received by
the company issuing the stock
on the filing OF Mr. Smiths report, II is ek-
~,ec+ed that suits viii be begun against MI
sschnvab 70 cancel his S10,0O0.oee second mort
gage or the shipyards. TO recover S1ocvocvo
Of stock liabilities, and TO cancel his mortgage
on the Bethlehem Steel Company's plant. 1t Is
presumed therefore, that the receiver viii &C
x-prt Nj. DrcSser's statements regarding the
sale of the Bethlehem Steel stock and take the
GROUND that the offer of Mr.. Schwab 10 sell all eX-
cent bout eighty Of the three hundred thousand
shares Of the stock for 100000 fixed the value
sf the STOCK 10 him. That being the case the
delivery OF S10.oo0.oe0 in first mortgage bonds
70 him. the receiver may decide was sufficient
1,ayrnent. particularly as the mortgage was pro-
5erfed ,,r a Sl0e0aeoo second mortgage on the
shir yards The additional S2o0o0oo0 in stock
received bv M. Schwab therefore would he
carded bonus.
Nr Dresser has declared that he did not know
st what prices the different plants Of the ship
building company were taken over. But as TO
the Bethlehem Steel plant Mr.. Dresser swore
that he was cognizsnt Of the price asked. be-
cause he personally assisted in the sale trans
action.