Daily new dominion. [volume] (Morgantown, W. Va.) 1897-1906, 1903-11-06
SHTPBtNL DIkG CASE
Mr.. Nixon Protests at Line of
Questioning Adopted by
MIR. Guthrie.
EXPENDITURES WERE EXCESSIVE
Alleged Withholding of Dividends by
Bethlehem company-Estmates CT
Value Made by Promoter and Others
Practically Without Weight.

FFdNkIdity which, VCtSuIs
New York, Nov. 6.-The features
at the hearing in the United States
Shipbuilding case We're the bitter al
tack made by Lewis Nixon upon Viii
liam D. Guthrie, counsel for the de-
PENDANTS and representative of the in
terests of Charles NJ Schwab, for MS
methods of cross-examination leading
questions by Mr.. Untermyer, counsel
for the compliments, as to the abb
sence of competition between the
Bethlehem Steel company and the
Carnegie plant of the United States
Steel corporation in government con-
tracts for armor plate. and the entire
change of front of Mr.. Guthrie, who
heretofore had aimed to bring out the
fact that the value of the constituent
plants of the United States Shipbuild-
ing company was not overestimated
Mr. Guthrie adopted a line of ques-
tioning designed to show that the esti-
mates of the value was made by tho
promoter, the vendors and other inter-
ested or inexpert appraisers, and
were practically without weight in de-
termining the exact value of the
plants and assets of the consolidation.
Mr. Nixon was on the stand all day
His cross-examination was finished
and the redirect partly completed
Thought Questions Unfair.
At the opening of the afternoon ses-
sion he presented a personal protest.
in which he declared that Mr.. Guth-
RE, in consultation with Max Pam.
had adopted a line of questioning de.
signed to place him in false and dis
ereditable position regarding the sale
of his plant to the shipbuilding con
solidation. The protest was angry and
bitter in tone and intimated that Mr..
Guthrie had been unfair in asking him
to answer from memory questions
about the finances Of his company
without opportunity to look UP the de-
tails, while Guthrie had had the bene
fit of full investigation Of the figures
By agreement of the counsel the
protest was stricken from the record,
but Mr.. Nixon thereafter during the
hearing insisted that if he were to an
swer questions he should be allowed
to make the necessary explanations
Besides asking Nixon about the or
ganization of the shipbuilding com
pany, the valuations put upon the con-
stituent companies and the methods
by which they were reached, Mr.. Guth-
rie took UP the alleged Withholding Of
dividends by the Bethlehem company,
an action which, according to the
charges OF Receiver Smith, eontem-
plated the wrecking of the company
Contrast in Nixon's Attitude.
Guthrie placed in contrast Nixon's
attitude in demanding. by letter TO
President McIlvain, of the Bethlehem
company, that the Bethlehem com
pany directors declare a dividend to
save the shipbuilding company, and
later, at two subsequent meetings Of
the Bethlehem directors, in aequies-
cling in resolutions declaring it mex
pedient tc declare such dividend
He also brought out that Nixon had
voted for the resolution for the ex-
penditures for betterments. This was
the means, SO Receiver Smith charges,
by which earnings were diverted from
dividends to needless improvements.
Guthrie took up figures from the
financial reports of the Bethlehem
company to show it's inability to pay
dividends
Mr.. untermyer, from the same re-
ports, attempted to show that expen-
ditures for betterments and new ma
terial were excessive and that the
company might we'll have declared a
dividend, had it been so desired.
He was questioning Nixon about the
trip OF examination made by Bethle.
hem and Carnegie officials to deter
mine means Of improving the Beth
lehem plant when the hearing closed
for the day.
The redirect examination of Mr.
Nixon will be resumed this afternoon
and Charles M. Schwab will be place |
on the stand later in the day.