The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-12-24
SPARRING OF COUNSEL
IN SH|PBU|[D|NG CASE
Guthrie and Untermyer Clash Over
Question of Admitting the
Newspaper Evidence.
TESTIMONY RULED OUT

NEW YORK, Dec. 2S.-At the opening of
the United States Shipbuilding hearing to-
day Counsel Untermyer at once took up the
subject of the publication of the Alexander
correspondence, declaring that so far as he
knew neither himself his associate coun-
sci, nor anyone connected with his office
had anything to do with giving the CORE
spondence to the press. However" he
continued, II do not see how the question of
contempt of court in the publication of
this report can be raised in anything but
q Pickwickian sense"
lie said that he had learned that no less
than fifteen copies of the correspondence
mad been made and distributed broadcast
in New York; that he himself had had his
copy only during the examination. He
said that copies of the correspondence had
been offered for sale in newspaper offices
In New York. Under such circumstances, -
he continued lit Is absurd to claim that
such correspondence is privileged"
Mr.. Guthrie, replying, declared that he
had summoned three witnesses from the
paper (The World). which published the
correspondence yesterday and asked per-
mission to go into the matter, but Counsel
Untermyer objected to a hearing this
subject being interjected into the Ship
building hearing. Referee Oliphant sus-
tanned the objection and directed that the
cOmplainant's next witness, Alfred Rose,
an accountant who made an examination
of the Bethlehem Steel Company for Re-
ceiver Smith, be called. Mr.. Guthrie en-
tered a protest against the exclusion of
his newspaper witnesses and announced
his intention of bringing the matter be-
fore the court
Mr.. Rose testified as to the financial
status of the Bethlehem Company from
July 81, 1899, to October, 1903, his informa-
ton prior to July 81 1902 being received
from reports of officials of the firm. For
the year and three months since then he
had made a direct personal investigation
During a pause in the examination, Mr.
Guthrie brought UP another sensational ex-
traneous subject by stating that he had
been informed that the process server who
yesterday had used Mr.. Guthrie's card to
gain access to Mr.. Gates. Mr.. Untermyer
said the subpoena had been served by an
employe OF his office and that IL he had
resorted to ANY such unprofessional con-
duct he would be Immediately discharged.
Mr.. Gates was to have been examined to-
panied by his counsel. but on stating that
he knew nothing of the matters on which
Mr.. Untermyer desired to interrogate him,
he was excused
Mr. Rose continued his testimony elabor-
ating the details of certain deductions of
inventory items. and l.. G. Root vice presi-
dent Of the New York Security and Trust
Company, testified as to loans made to
Nixon & Dresser and to oliver Dreu, Mr.
Schwabs secretary. Following Mr.. Root,
Rose was recalled and testified that the
earnings Of the Bethlehem Company during
the year ended July 81. 1902. had been $780,
sol, but that no dividends were paid.
Mr.. Untermyer obtained from Mr.. Rose
the statement that the Bethlehem company,
which on April 1. 1902. had debts amount
ing to $4,000. had by Sept. l. 1903. emerged
entirely from debt, having paid off S325.0O0
since April 1. 1903. and $4,000 during the
month Of August. In addition to applying
this sum to debt reduction, Mr.. Rose stated
the bethlehem company had since July 81
1903. invested 1919. 625 in the Uruguay Iron
Company. On Mr.. Guthrie's objection to
this testimony concerning transactions sub
sequent to the joining of issue in this suit
Mr.. Untermyer rejoined that lone of the
most significant phases in our case is that
of matters arising since the joining of ac-
ton
In regard to net earnings, Mr.. Roses fig
ures showed that the earnings. $3.50 176 in
1901. had increased to 81. 261, S91 i'm 1902 and
81, So, $50 In 1903. dividends of $525 COO being
paid In 1901. none in 1902 and s25OOO In 1909
These last dividends, Mr.. Rose said. went
to the Shipbuiding company to be applied
on the sl0,oO0,0O0 issue OF bonds held by c.
NJ SchWab