The Providence news. (Providence [R.I.]) 1891-1906, 1903-12-18
BETHLEHEM
STEEL WAS
CHEAP
Charles StaeIe Of Morgal {
Co. Slys Firm Took ito
CJatroI Il

New York, Dec. 1S.-Charles Steele. one
OF the partners in the Arm OF ]. p. Nor
gan & Co. testified yesterday before Spe-
cial United States Examiner Henry ID.
oliphant In the proceedings brought by
minority bondholders OF the United states
shipbuilding company to make permanent
the receivership of the concern.
The purchase of the Bethlehem Steel
company plant by Charles NJ. schwab and
its transfer to the Morgan Arm was in
quired into at length. Mr.. Steele said
that Mr.. Schwab had taken the plant as
taken IL OF his hands as managers or the
United States Steel syndicate. TO controi
its disposition, with view TO developing
the concern as customer Tor the Umteu
States Steel corporation.
The hearing was held in the rooms or
the board OF trade and transportation,
owing TO the fact that the frequent TITS
between Samuel Untermeyer' counsei lot
Guthrie. representing the company, and
Charles NJ. Schwab. made II desirable 10
continue the proceedings on neutral
ground. instead of in NJ. Untermeyers
Office.
Charles NJ. Schwab. accompanied by
Max Pam, who was his counsel in the
Bethlehem deal, attended the hearing.
MIR. sTEELE's TESTIMONY.
Charles Steele OF J. p. Morgan g. Co.
took the stand. Francis Lynde Stetson
was present as his counsel Mr. inter
meyer examined Mr.. Steele as follows:
Q-You are a member OF the firm OF
j. p. Morgan & CO.? Al am.
Q.-when did you become connected
with the irm7 A.-some time prior to
the year 1901.
practicing attorney in New York city!
Al was.
o.-And a member Of the nrm Of Stuart.
Guthrie g. Steelef Al was.
IN connection with the Bethlehem Steel
corporation7 A.-On the occasion OF the
Incorporation OF the steel syndicate
Q.-were you assisted by any other
member of your irm' Al don't Just
o.@Who FIRST brought the property TO
your attention. A-Mr. Schwab.
Q.--Had Mr.. schwab any interest IN the
TOLD OF PURCHASE.
o.-From whom did you first learn that
Mr. schwab had agreed TO purchase the
stock OF the Bethlehem plant7
A.-From Mr.. schwab himself. He
came to my office either on May a OF
June l. and told me he had contracted to
buy the Bethlehem company. He said
Mr.. Iinderman, then president had told
| him N was for sale. and that he had
agreed 10 purchase II. He said the stocf
was AT disposal Of the steel syndicate II
| they wanted IL.
o'-Did you tell him then that the stee
company wanted the property
Any recollection was that the Stee
company did not then want H. The stee
syndicate had been organised 10 protec
| tho steel corporation. and the only objec
we eew In getting the Bethlehem plan
was 10 be In position TO decide what dis
| posal would be made OF H. We thought 4
build UP a big industry that would be
customer OF the Steel corporation.
Dwell. In IL not fact that your pur
pose In taking over the plant was TO &c
rid OF a competitor Al think not.
Q-was the purchase an sdvantaseou
one for the steei syndicate7 Alt was
very cheap purchase. and very advanta
geous for the Steel company.
Odd you think II advantageous
the Steel company because Il would RI
the company OF a competitor A-Ths
was not what we had In mind. II was nc
SO much TO get rid OF q competitor tina
II was purchased.