The Montgomery advertiser., 1903-12-24
WAS OFFERED FOR SALE
COPY OF CABLEaRAlrs IN SHIP
 BUILDING CASE.
Counsel Untermeyer, Discusses the Giving Out of the Privileged
 Papers in the Famous
 New York Hearing.

New York, Dec 23.-At the opening of the United States Shipbuilding hearing today Counsel Untermeyer immediately took up' thensub3eetrS9f the Modification. of the Alexander correspondence, declaring that so far as he knew, neither he nor his associate counsel nor any one con nected with his office had anything to do with giving the correspondence to the press.
 However" he continued, T do not see now the question of contempt of court in the publication of this report can be raised in anything but a 'Pickwickian' sense"
 He said that he had learned that no less than 15 copies of the correspondence had been made and distributed broad cast in New York; that he himself had had his copy only during the examIna- ton; he said that copies of the cores pqndepce had been 'ofreredn fer sale in newspaper offices in New York,
 Under such circumstances" ha- con- tinued. 1t is absurd to claim that such lack of courtesy shown by opposing counsel" and efforts to "sidetrack the real issues in the case"
 At another, time," he added, i've shall be very glad to go into this matter"
 MT. Guthrie. replying, declared that he had summoned three witnesses from the paper (The World) which published the correspondence yesterday, and asked permission to go into the matter. but Counsel Untermeyer objected to hear ing on this subject being interjected into the shipbulding hearing. Referee Oli- phant sustained the objection and di- rected that the c0mpiainant's next wit ness, Alfred Rose, an accountant, be called. --4
 Mir. Rose testified as to the financial status of the Bethlehem company from July 31, 1899, to October, 1903, his infor- nation prior to July S1, 1902. being de- rived from reports of officers of the firm. For the year and three months since then he had made a direct per- soral investigation.
 During a pause in the examination MT. Guthrie brought up another sensational extrareous subject by stating that he had been informed that the process server who served 8 subpoena upon John w. Gates yesterday had used MT. Guth- rie's card to gain access to MT. Gates. Mir. JJntermeyer said the subpoena had been cerved by an employe of his office, and if he had resorted to any such un- nrofessional conduct he would be iTn- mediateIy discharged. Mr. Gates was to have been examined today, and appeared at the hearing accompanied by his coun- sel. but upon stating that he knew noth- ing of the matters upon which MT. Un- termeyer desired 10 WterrosaI" N'A"' "o was excused.
 MT Rose testified to a certain deduc tion of $25O,OOO in inventory value of the Bethlehem property made in NoVemoeI, 1912. hut charged this to the balance sheet of April 3O 1902. He declared that had he been preparing the April balance sheet he would have deducted this amount at the time and said that the change made in November was to bring the inventory down to manufacturing cost"
 This change in policy he said, he had heard was due to the advice or account ants.
 Tn the stock exchange statement, cur rent assets of July 31, 1902. were over stated to the extent of over $3O0,000. The overstatement was brought about largely by the inclusion in live assets, he said, of bad accounts. one item Of over $5O,OJO due from an ordinary account being in- cluded. although the company had gone into the hands of a receiver during the year.
 T. c. Root, third Vice-President of the New York Security and Trust Company, which loaned $S50,0OO to Messrs. Nixon and Dresser on their note August F. 1902 was nut on the stand. Mir. Root testified that so far as he knew this loan of $35O,OO was inc only one made to Nixon and Dresser and that no loan had been made to the Trust Company of the Republic. It had been understood before that the amount of the loan was S700.0 and that J. P. Morgan and Company deposited this amount with the trust company to pro- vide funds for the loan. The loan of $SJO,- 900 which was repaid in less than a month had for security United States Shipbuild- ing stocks and a portion of the under writing agreements.