New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-12-24

~ or IN rAdff s1ir-
Plus assets by $4,000? At was
Mr.. Rose said the statement 70 the Stock FIX
change on December "a. 1902. contained the
item as OF July u, 1902 under the head of la
oiiities surplus current assets. $4.0Ol. O1S 46"
INACCURATE TO EXTENT OF $500 9o2.
In the strength of the books of the company
this item was inaccurate to the extent Of $500
922 %, it not?"
Mr.. Guthrie objected repeatedly to the form
OF the question. This was an overstaten7ent."
the witness replied and there were adjust
ments which we found in their books"
showing they knew overstatements were
nader" asked Mr. Untermyer
These adjustments were not made by ms at
all simply put them back to the dates 10
which they belong" replied the witness.
he said the largest item was the $3.50 900.
The next largest was the account of the Ameri-
can Ordnance Company of $36.547. carried as
good debt after the company being
liquidated.
o..what did you find to be the actual current
assets OF the Bethlehem company in July, 1892?
Con December "a 1902 when the statement was
made to the New-York Stock Exchange the
Plus and assets had been reduced the books Of
OF the adjustment had been made in December.
~ ne S<o9VW adjustment was made IN NoveTn-
ts;xShsnge would not have shown the assets 10 be
..o-The books did not show current assets to
wSst did they show aiG not Current assets to be
IN 9Ss sH saa hot Ssen SAY mad. 0T th the mean S
Q-Ddd you have any conversation with the Beth
pany. A-No: because they had charged that debt
OF back as applicable to the OF 1902. where
it properly belonged
After recess Mr.. Roses testimony was inter
rupted TO permit Mr.. Root to produce certain
ks Of he Me- Gacr
pany. which had been brought in response to a
subpoena Mr.. Root was accompanied by coun-
sci. who said there would be no objection to Civ
ing information from the books as to any ac-
count about which a customer made a formal
protest Mr.. Root then told what he knew OF
the loan OF S3J0000 made by the New-York Sc
curity and Trust Company on August u 1902
to Nixon and Dresser. ]. P lIorgan & Co. he
said, regular customers of the company
but had not made any deposit of S35OOOO to per
nit Nixon and Dresser to borrow the money.
The security for the loan. he said consisted of
$4,000 in shipbuilding bonds, $4,000 OF each
kind Of stock and S35OOOO in underwriting
agreements. The loan was repaid on September
., 1902 Mr.. Root said he did not know if Mr.
Schwab, who was large customer and a direc-
tor OF the company. had asked to have the loan
made TO Nixon and Dresser
Mr.. Untermyer then called for the check for
S7.191. 791 IS which Mr.. Schwab drew on the
New-York Security and Trust Company to pay
for the Bethlehem shares which were held by
J. P. Morgan Co This check was paid on
August u. 1902. Against Mr.. Guthre's objec-
ton the witness read from ledger Of the New
York Security and Trust Company the daily bal
ances which Mr.. Schwab had with the company
from the beginning OF at month, as follows:
August = !so2 3 SIS s42 o.; August ? s5l7 14s %:
AS So; August sSS742S IS; August IL IS 035 sos Il
On August L. before payment of the check.
Mr.. schwab's balance was s.. 235. 500 p. On the
nsIt day the balance was sT1,9o4 II. On August
II 1t waz s6s.164 IL.
The highest balance MI schwab had during
the rest Of the month did not reach $4,000
witness said There was nothing in the book to
show the sources OF the accumulation preceding
August, T. Mr.. Untermyer asked many ques-
tons with the apparent purpose of connecting
J. P Morgan Co. with a loan to Mr. Schwab.
but the witness could give no information on
that subject
LOAN TO sCHWAB's SECRETARY.
MT. Root could not remember about any loan
made 10 Mr. schwab in August. 1902. he said
At first he said he could remember no loan TO
Oliver Wren, Mr. Schwab's secretary but when
questioned closely by Mr.. Untermyer he said
he thought there had been a loan to Mr. Wren
Of about S1,000.OOO. Then he took up another
ledger and answered. reading from It:
Q-What the date Of the loan? A-Aur71st
Go whom cid the New-York Security AMI
Trust Company make this loan? A-To Oliver
Q-On what security? A-On % 500 shares OF pre-
ferred stock Of the United States Steel Corpora don
Q-Indersed by Mr. Schwab? A-No.
Q-Any other loan TO Mr.. Wrenn up 10 August IS.
Q-When was that loan paid? A-On December 8.
Gid you not understand that that was a loan
to Mr.. Schwab? Al did not. The loan was made
Mr. Wren personally the cola teral.
Q-Was Il made at the request OF Mr.. Schwab?
Al think not
When Mr.. Rose resumed the witness chair he
testified that the Bethlehem Steel Company's
books showed that the company borrowed heavt-
ly IN 1901, but reduced its debts in the follow
ing years. The compeuy's debts, he said, were
S71G4 Is in 1901. S712000 on April |. 1902;
S325 900 a year later, $4,000 on August !.
1903 and the company wa5 out Of debt on
September l. Between August l and October
l, 1903, the company paid $313,62J for G975
shares Of the Uruguay Iron Company. The net
earnings Of the company for the year ended
July 81. 1903 he said, were 81, GG2.J3 50.
Mr.. Rose was stil testifying when an adj
jourument was taken 10 this morning. Mr.
Guthrie wanted 10 know II his testimony would
be finished to-day, and MT. UnterInyer said yes